Hiring the First Non-native Worker and Exports

This study examines whether non-native workers contribute to firms’ export growth, using matched data spanning nearly three decades and covering the entire workforce and all manufacturing firms. The estimation strategy relies on the timing of a firm’s first non-native hire, constructing counterfactuals from otherwise similar firms that hire non-native workers a few years later. The results indicate that nonnative employment is associated with increased total exports, greater trade with workers’ home countries, and a higher number of exported products. These findings remain robust when addressing potential endogeneity concerns, such as the simultaneity of hiring decisions and broader export growth strategies.