Abstract
Using panel data between 2012 and 2020, this research examines the relationship between the flows of low-skilled immigrants and innovation in the EU-15 group of nations and Switzerland. The empirical component is generated from a theoretical model that we construct. After addressing the potential endogeneity of the share of immigrants in the population, we find that regions with a relatively high immigrant population have a favorable impact on the generation of patent applications, whereas low-skilled immigrants have the reverse effects on innovation. Hence, the results are in line with the proposition in the theoretical section that lower-educated immigrants determine social decreasing returns in the economy.
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