The goal of the paper is the estimation of the marginal productivity of immigrants relative to natives. One reason why firms may hire immigrants is because immigrants are more productive than natives. I test this hyphotesis using a confidential matched employer-employee dataset from Germany for the years 1996-2004. Using a production function approach, I find that immigrants are similar to natives in terms of productivity and wages. Hence, the benefits of immigration need to come from non-wage sources or immigrant labor flexibility
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