While border regions are peripheral areas on a national scale, they gain a more central position in the actual border region, due to their location at the interface of domestic and foreign markets. It is a specific location advantage for firms located in border regions that they are close to foreign labour markets making it easier to employ workers from abroad. An increased labour mobility results in a pooling of workers from both sides of the border. With few border impediments, the labour markets located on the two sides of the border might melt into a common labour market, allowing a more efficient allocation of labour. The aim of this study is to examine to what extent economic productivity (gross pay) in the border regions between Sweden and Norway is affected by accessibility to highly educated labour. The southern border between Norway and Sweden is interesting to study since, on the Norwegian side of the border, the local labor market region Sør-Østfold is a neighboring region to the Oslo region, while on the Swedish side of the border, the regions are more considered to be rural areas. As main result we show that the parts of productivity generated by the cross-border workforce is shown to be driven by the accessibility of cross-border human capital both for municipals with an influx of foreign workforce and for the municipals with an outflow of workforce to a foreign country.