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The Labor Market Impact of High-Skill Immigration

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  • George J. Borjas

Abstract

The rapid growth in the number of foreign students enrolled in American universities has transformed the higher education system, particularly at the graduate level. Many of these newly minted doctorates remain in the United States after receiving their doctoral degrees, so that the foreign student influx can have a significant impact in the labor market for high-skill workers. Using data drawn from the Survey of Earned Doctorates and the Survey of Doctoral Recipients, the study shows that a foreign student influx into a particular doctoral field at a particular time had a significant and adverse effect on the earnings of doctorates in that field who graduated at roughly the same time. A 10 percent immigration-induced increase in the supply of doctorates lowers the wage of competing workers by about 3 percent.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11217.

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Date of creation: Mar 2005
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Publication status: published as Borjas, George J. "The Labor-Market Impact Of High-Skill Immigration," American Economic Review, 2005, v95(2,May), 56-60.
Handle: RePEc:nbr:nberwo:11217

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  1. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
  2. George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1335-1374, November.
  3. Richard B. Freeman, 1976. "A cobweb model of the supply and starting salary of new engineers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 29(2), pages 236-248, January.
  4. George J. Borjas, 2006. "Immigration in High-Skill Labor Markets: The Impact of Foreign Students on the Earnings of Doctorates," NBER Working Papers 12085, National Bureau of Economic Research, Inc.
  5. Welch, Finis, 1979. "Effects of Cohort Size on Earnings: The Baby Boom Babies' Financial Bust," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S65-97, October.
  6. Finis Welch, 1979. "Effects of Cohort Size on Earnings: The Baby Boom Babies' Financial Bust," UCLA Economics Working Papers 146, UCLA Department of Economics.
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Cited by:
  1. Delia Furtado & Miriam Marcén & Almudena Sevilla, 2013. "Does Culture Affect Divorce? Evidence From European Immigrants in the United States," Demography, Springer, vol. 50(3), pages 1013-1038, June.
  2. d'Artis Kancs & Julda Kielyte, 2010. "Education in the East, Emigrating to the West?," EERI Research Paper Series EERI_RP_2010_01, Economics and Econometrics Research Institute (EERI), Brussels.
  3. Thomas Kemeny, 2013. "Immigrant Diversity and Economic Development in Cities: A Critical Review," SERC Discussion Papers 0149, Spatial Economics Research Centre, LSE.
  4. Amuedo-Dorantes, Catalina & de la Rica, Sara, 2009. "Complements or Substitutes? Task Specialization by Gender and Nativity in Spain," IZA Discussion Papers 4348, Institute for the Study of Labor (IZA).
  5. Catalina Amuedo-Dorantes & Sara de la Rica, 2008. "Complements or Substitutes? Immigrant and Native Task Specialization in Spain," Working Papers 2008-35, FEDEA.
  6. Scott Farrow & Stuart Shapiro, 2009. "The Benefit-Cost Analysis of Security Focused Regulations," UMBC Economics Department Working Papers 09-101, UMBC Department of Economics.
  7. Kox, Henk L.M., 2011. "The future of the fence around the European labour market," MPRA Paper 31722, University Library of Munich, Germany.
  8. Daniela Federici & Marilena Giannetti, 2008. "Temporary migration and foreign direct investment," Working Papers 2008-03, Universita' di Cassino, Dipartimento di Scienze Economiche.
  9. Azarnert, Leonid V., 2010. "Is skilled immigration always good for growth in the receiving economy?," Economics Letters, Elsevier, vol. 108(2), pages 116-118, August.
  10. Bratti, Massimiliano & Conti, Chiara, 2014. "The Effect of (Mostly Unskilled) Immigration on the Innovation of Italian Regions," IZA Discussion Papers 7922, Institute for the Study of Labor (IZA).
  11. Scott Baker, 2013. "Effects of Immigrant Legalization on Crime: The 1986 Immigration Reform and Control Act," Discussion Papers 12-012, Stanford Institute for Economic Policy Research.
  12. Richard B. Freeman, 2006. "People Flows in Globalization," NBER Working Papers 12315, National Bureau of Economic Research, Inc.
  13. Hanson, Gordon H., 2010. "International Migration and the Developing World," Handbook of Development Economics, Elsevier.

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