Skilled immigrants' contribution to productive efficiency

This paper studies whether skilled migrants contribute to the host country's ‘productive efficiency’ (Farrell 1957) using input–output and immigration sectoral data for 7 industries in 12 countries during the period 1999–2001. We find that skilled migrants contribute positively to a country's productive efficiency with the exception of the finance sector. The results broadly support the adoption of skill-biased migration policies.