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Abstract

This study investigates if foreign information technology (IT) workers complement or substitute for native IT workers within the production function framework. We first examine the differences between foreign and native IT workers in their skill sets and then test their complementarity/substitution relationship using an US industry-level dataset obtained by matching the productivity data to the Current Population Survey. Our findings suggest that foreign and native IT workers are complements rather than substitutes. The results of this study shed light on this important issue and bear theoretical and practical implications.

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Aug 10th, 12:00 AM

The Complementarity between Foreign and Native IT Workers: Evidence from an Industry-Level Analysis

This study investigates if foreign information technology (IT) workers complement or substitute for native IT workers within the production function framework. We first examine the differences between foreign and native IT workers in their skill sets and then test their complementarity/substitution relationship using an US industry-level dataset obtained by matching the productivity data to the Current Population Survey. Our findings suggest that foreign and native IT workers are complements rather than substitutes. The results of this study shed light on this important issue and bear theoretical and practical implications.

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