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OPT Reforms and the Relative Supply of STEM Skills

Author

Listed:
  • Catalina Amuedo-Dorantes
  • Kevin Shih

Abstract

Since the late 2000s, reforms to the optional practical training (OPT) program have allowed international STEM graduates to work in the United States for up to three years after graduation. We study how these reforms affected the supply of STEM skills in the United States. Exploiting the staggered 2008, 2011, 2012, and 2016 STEM-OPT expansions, we find that OPT reforms increased STEM degree completions by 14–15 percent, with gains evident at the bachelor’s and master’s levels. Domestic completions increased as well, suggesting that OPT expansions may have crowded in domestic STEM students rather than crowding them out.

Suggested Citation

  • Catalina Amuedo-Dorantes & Kevin Shih, 2026. "OPT Reforms and the Relative Supply of STEM Skills," AEA Papers and Proceedings, American Economic Association, vol. 116, pages 351-355, May.
  • Handle: RePEc:aea:apandp:v:116:y:2026:p:351-355
    DOI: 10.1257/pandp.20261100
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    More about this item

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • K37 - Law and Economics - - Other Substantive Areas of Law - - - Immigration Law

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