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Talents from Abroad. Foreign Managers and Productivity in the United Kingdom

Author

Listed:
  • Dimitrios Exadactylos

    () (IMT School for advanced studies)

  • Massimo Riccaboni

    () (IMT School for advanced studies)

  • Armando Rungi

    () (IMT School for advanced studies)

Abstract

In this paper, we test the contribution of foreign management on firms competitiveness. We use a novel dataset on the careers of 165,084 managers employed by 13,106 companies in the United Kingdom in the period 2009-2017. We find that a domestic manufacturing firm becomes on average between 9% and 12% more productive after hiring at least one foreign manager. Interestingly, productivity gains by domestic firms after recruiting foreign managers are similar in magnitude to gains after foreign acquisitions as from previous literature. Eventually, we do not find significant gains by foreign-owned firms hiring foreign managers. Our identification strategy combines difference-in-difference and matching techniques to challenge reverse causality. We proxy firms competitiveness either by total factor productivity or by technical efficiency derived from stochastic frontier analyses. Eventually, we argue that limits to the circulation of talents, as for example in case of a Brexit event, may hamper the allocation of labor productive resources.

Suggested Citation

  • Dimitrios Exadactylos & Massimo Riccaboni & Armando Rungi, 2019. "Talents from Abroad. Foreign Managers and Productivity in the United Kingdom," Working Papers 01/2019, IMT Institute for Advanced Studies Lucca, revised Dec 2019.
  • Handle: RePEc:ial:wpaper:1/2019
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    Cited by:

    1. Vasily Astrov & Dimitrios Exadaktylos & Richard Grieveson & Beate Muck & Josef Pöschl & Massimo Riccaboni & Armando Rungi & Joris M. Schröder, 2020. "Monthly Report No. 03/2020," wiiw Monthly Reports 2020-03, The Vienna Institute for International Economic Studies, wiiw.

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    More about this item

    Keywords

    managers; productivity; job mobility; spillovers; multinational enterprises; migration;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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