IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp12028.html
   My bibliography  Save this paper

Substitution between Groups of Highly-Educated, Foreign-Born, H-1B Workers

Author

Listed:
  • Sparber, Chad

    (Colgate University)

Abstract

Highly-educated foreign-born workers can secure legal US employment through the H-1B program. The annual cap on H-1B issuances varies across individuals' US educational experience, H-1B work history, and employer type. Caps are met quickly in most but not all years. This paper exploits these differences to identify whether firms substitute across different sources of highly-educated, foreign-born, H-1B labor. New H-1B workers without advanced degrees from US universities substitute with new H-1B workers possessing advanced US degrees. We find no evidence for substitution with established H-1B workers.

Suggested Citation

  • Sparber, Chad, 2018. "Substitution between Groups of Highly-Educated, Foreign-Born, H-1B Workers," IZA Discussion Papers 12028, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12028
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp12028.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Stuhler, Jan & Jaeger, David & Ruist, Joakim, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    2. Catalina Amuedo-Dorantes & Delia Furtado, 2019. "Settling for Academia?: H-1B Visas and the Career Choices of International Students in the United States," Journal of Human Resources, University of Wisconsin Press, vol. 54(2), pages 401-429.
    3. Gianmarco I. P. Ottaviano & Giovanni Peri & Greg C. Wright, 2021. "Immigration, Offshoring, and American Jobs," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 10, pages 291-326, World Scientific Publishing Co. Pte. Ltd..
    4. Gianmarco I. P. Ottaviano & Giovanni Peri, 2021. "Rethinking The Effect Of Immigration On Wages," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 9, pages 245-290, World Scientific Publishing Co. Pte. Ltd..
    5. Petra Moser & Alessandra Voena & Fabian Waldinger, 2014. "German Jewish ?migr?s and US Invention," American Economic Review, American Economic Association, vol. 104(10), pages 3222-3255, October.
    6. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007. "Firms in International Trade," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 105-130, Summer.
    7. Giovanni Peri & Kevin Shih & Chad Sparber, 2015. "Foreign and Native Skilled Workers: What Can We Learn from H-1B Lotteries?," NBER Working Papers 21175, National Bureau of Economic Research, Inc.
    8. William W. Olney, 2012. "Offshoring, immigration, and the native wage distribution," Canadian Journal of Economics, Canadian Economics Association, vol. 45(3), pages 830-856, August.
    9. Giovanni Peri & Chad Sparber, 2016. "Task Specialization, Immigration, and Wages," World Scientific Book Chapters,in: The Economics of International Migration, chapter 3, pages 81-115 World Scientific Publishing Co. Pte. Ltd..
    10. George J. Borjas & Kirk B. Doran, 2021. "The Collapse Of The Soviet Union And The Productivity Of American Mathematicians," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 11, pages 313-373, World Scientific Publishing Co. Pte. Ltd..
    11. Takao Kato & Chad Sparber, 2013. "Quotas and Quality: The Effect of H-1B Visa Restrictions on the Pool of Prospective Undergraduate Students from Abroad," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 109-126, March.
    12. Jennifer Hunt & Marjolaine Gauthier-Loiselle, 2010. "How Much Does Immigration Boost Innovation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 31-56, April.
    13. Lofstrom, Magnus & Hayes, Joseph, 2011. "H-1Bs: How Do They Stack Up to US Born Workers?," IZA Discussion Papers 6259, Institute of Labor Economics (IZA).
    14. Ottaviano, Gianmarco & Peri, Giovanni, 2008. "Immigration and National Wages: Clarifying the Theory and the Empirics," CEPR Discussion Papers 6916, C.E.P.R. Discussion Papers.
    15. David Card, 2009. "Immigration and Inequality," American Economic Review, American Economic Association, vol. 99(2), pages 1-21, May.
    16. Alberto Abadie & Susan Athey & Guido W Imbens & Jeffrey M Wooldridge, 2023. "When Should You Adjust Standard Errors for Clustering?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 138(1), pages 1-35.
    17. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2011. "Robust Inference With Multiway Clustering," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 29(2), pages 238-249, April.
    18. Kirk Doran & Alexander Gelber & Adam Isen, 2022. "The Effects of High-Skilled Immigration Policy on Firms: Evidence from Visa Lotteries," Journal of Political Economy, University of Chicago Press, vol. 130(10), pages 2501-2533.
    19. Michael J. Hilmer & Michael R. Ransom & Christiana E. Hilmer, 2015. "Fame and the fortune of academic economists: How the market rewards influential research in economics," Southern Economic Journal, John Wiley & Sons, vol. 82(2), pages 430-452, October.
    20. Charles I. Jones, 2002. "Sources of U.S. Economic Growth in a World of Ideas," American Economic Review, American Economic Association, vol. 92(1), pages 220-239, March.
    21. Glenn Ellison, 2013. "How Does the Market Use Citation Data? The Hirsch Index in Economics," American Economic Journal: Applied Economics, American Economic Association, vol. 5(3), pages 63-90, July.
    22. Kristiina Huttunen, 2007. "The Effect of Foreign Acquisition on Employment and Wages: Evidence from Finnish Establishments," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 497-509, August.
    23. Mayda, Anna Maria & Ortega, Francesc & Peri, Giovanni & Shih, Kevin & Sparber, Chad, 2018. "The effect of the H-1B quota on the employment and selection of foreign-born labor," European Economic Review, Elsevier, vol. 108(C), pages 105-128.
    24. Marco Manacorda & Alan Manning & Jonathan Wadsworth, 2012. "The Impact Of Immigration On The Structure Of Wages: Theory And Evidence From Britain," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 120-151, February.
    25. Amuedo-Dorantes, Catalina & de la Rica, Sara, 2011. "Complements or substitutes? Task specialization by gender and nativity in Spain," Labour Economics, Elsevier, vol. 18(5), pages 697-707, October.
    26. William R. Kerr & William F. Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and U.S. Ethnic Invention," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 473-508, July.
    27. Katz, David A, 1973. "Faculty Salaries, Promotion, and Productivity at a Large University," American Economic Review, American Economic Association, vol. 63(3), pages 469-477, June.
    28. A. Colin Cameron & Douglas L. Miller, 2015. "A Practitioner’s Guide to Cluster-Robust Inference," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 317-372.
    29. David H. Autor, 2003. "Outsourcing at Will: The Contribution of Unjust Dismissal Doctrine to the Growth of Employment Outsourcing," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 1-42, January.
    30. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2008. "Imperfect Substitution between Immigrants and Natives: A Reappraisal," NBER Working Papers 13887, National Bureau of Economic Research, Inc.
    31. Depew, Briggs & Norlander, Peter & Sorensen, Todd A., 2013. "Flight of the H-1B: Inter-Firm Mobility and Return Migration Patterns for Skilled Guest Workers," IZA Discussion Papers 7456, Institute of Labor Economics (IZA).
    32. Giovanni Peri & Chad Sparber, 2016. "Task Specialization, Immigration, and Wages," World Scientific Book Chapters, in: The Economics of International Migration, chapter 3, pages 81-115, World Scientific Publishing Co. Pte. Ltd..
    33. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2011. "Substitution Between Immigrants, Natives, and Skill Groups," NBER Working Papers 17461, National Bureau of Economic Research, Inc.
    34. George J. Borjas, 2009. "Immigration in High-Skill Labor Markets: The Impact of Foreign Students on the Earnings of Doctorates," NBER Chapters, in: Science and Engineering Careers in the United States: An Analysis of Markets and Employment, pages 131-161, National Bureau of Economic Research, Inc.
    35. Ethan Lewis, 2013. "Immigration and Production Technology," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 165-191, May.
    36. Giovanni Peri & Chad Sparber, 2011. "Highly Educated Immigrants and Native Occupational Choice," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(3), pages 385-411, July.
    37. George J. Borjas, 2021. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 9, pages 235-274, World Scientific Publishing Co. Pte. Ltd..
    38. Norman Matloff, 2013. "Immigration and the tech industry: As a labour shortage remedy, for innovation, or for cost savings?," Migration Letters, Migration Letters, vol. 10(2), pages 210-227, May.
    39. Sankar Mukhopadhyay & David Oxborrow, 2012. "The Value of an Employment-Based Green Card," Demography, Springer;Population Association of America (PAA), vol. 49(1), pages 219-237, February.
    40. Kevin Shih, 2016. "Labor Market Openness, H-1b Visa Policy, And The Scale Of International Student Enrollment In The United States," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 121-138, January.
    41. Giovanni Peri & Kevin Shih & Chad Sparber, 2016. "STEM Workers, H-1B Visas, and Productivity in US Cities," World Scientific Book Chapters, in: The Economics of International Migration, chapter 9, pages 277-307, World Scientific Publishing Co. Pte. Ltd..
    42. Ethan Lewis, 2011. "Immigration, Skill Mix, and Capital Skill Complementarity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(2), pages 1029-1069.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anna Maria Mayda & Francesc Ortega & Giovanni Peri & Kevin Shih & Chad Sparber, 2023. "Coping with H-1B Shortages: Firm Performance and Mitigation Strategies," ILR Review, Cornell University, ILR School, vol. 76(5), pages 919-943, October.
    2. Raux, Morgan, 2023. "Recruitment Competition and Labor Demand for High-Skilled Foreign Workers," IZA Discussion Papers 16554, Institute of Labor Economics (IZA).
    3. Takuma Sugiyama, 2024. "Does the Restriction Policy of High-skill Immigrants Benefit Native Workers?," Discussion Paper Series DP2024-01, Research Institute for Economics & Business Administration, Kobe University.
    4. Zahra Murad & Robert Dowell, 2020. "Foreign visa salary requirement and natives’ reservation wages," Working Papers in Economics & Finance 2020-06, University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 625-685, Elsevier.
    2. Chad Sparber, 2015. "The Value of H-1B Status in Times of Scarcity," RF Berlin - CReAM Discussion Paper Series 1510, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    3. Sari Pekkala Kerr & William R. Kerr & William F. Lincoln, 2015. "Skilled Immigration and the Employment Structures of US Firms," Journal of Labor Economics, University of Chicago Press, vol. 33(S1), pages 147-186.
    4. Ma, Jie, 2020. "High skilled immigration and the market for skilled labor: The role of occupational choice," Labour Economics, Elsevier, vol. 63(C).
    5. Gunadi, Christian, 2019. "An inquiry on the impact of highly-skilled STEM immigration on the U.S. economy," Labour Economics, Elsevier, vol. 61(C).
    6. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr & Arthur Sweetman, 2020. "An introduction to the economics of immigration in OECD countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1365-1403, November.
    7. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    8. Mitaritonna, Cristina & Orefice, Gianluca & Peri, Giovanni, 2017. "Immigrants and firms’ outcomes: Evidence from France," European Economic Review, Elsevier, vol. 96(C), pages 62-82.
    9. Lin, Gary C., 2019. "High-skilled immigration and native task specialization in U.S. cities," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 289-305.
    10. Dicarlo, Emanuele, 2022. "How Do Firms Adjust to Negative Labor Supply Shocks? Evidence from Migration Outflows," IZA Discussion Papers 14994, Institute of Labor Economics (IZA).
    11. William R. Kerr, 2013. "U.S. High-Skilled Immigration, Innovation, and Entrepreneurship: Empirical Approaches and Evidence," NBER Working Papers 19377, National Bureau of Economic Research, Inc.
    12. Patrick S. Turner, 2022. "High‐Skilled Immigration and the Labor Market: Evidence from the H‐1B Visa Program," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(1), pages 92-130, January.
    13. Chletsos Michael & Roupakias Stelios, 2019. "Do Immigrants Compete with Natives in the Greek Labour Market? Evidence from the Skill-Cell Approach before and during the Great Recession," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-30, April.
    14. Stefan Jestl & Sandra M. Leitner & Sebastian Leitner, 2022. "The relative impact of different forces of globalization on wage inequality: A fresh look at the EU experience," Review of International Economics, Wiley Blackwell, vol. 30(4), pages 1003-1037, September.
    15. Murat Demirci, 2020. "International students and labour market outcomes of US‐born workers," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1495-1522, November.
    16. Anna Maria Mayda & Francesc Ortega & Giovanni Peri & Kevin Shih & Chad Sparber, 2018. "New Data and Facts on H-1B Workers across Firms," NBER Chapters, in: The Roles of Immigrants and Foreign Students in US Science, Innovation, and Entrepreneurship, pages 99-121, National Bureau of Economic Research, Inc.
    17. Martin Kahanec & Mariola Pytliková, 2017. "The economic impact of east–west migration on the European Union," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(3), pages 407-434, August.
    18. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    19. Bosetti, Valentina & Cattaneo, Cristina & Verdolini, Elena, 2015. "Migration of skilled workers and innovation: A European Perspective," Journal of International Economics, Elsevier, vol. 96(2), pages 311-322.
    20. Ortega, Javier & Verdugo, Gregory, 2014. "The impact of immigration on the French labor market: Why so different?," Labour Economics, Elsevier, vol. 29(C), pages 14-27.

    More about this item

    Keywords

    H-1B status; skilled workers; immigrant;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp12028. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.