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Do Foreigners Crowd Natives out of STEM Degrees and Occupations? Evidence from the US Immigration Act of 1990

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  • Tyler Ransom
  • John V. Winters

Abstract

This article examines effects of the US Immigration Act of 1990 on STEM (science, technology, engineering, and mathematics) education and labor market outcomes for native-born Americans. The Act increased the inflow and stock of foreign STEM workers in the United States, potentially altering the relative desirability of STEM fields for natives. The authors examine effects of the policy on STEM degree completion, STEM occupational choice, and employment rates separately for black and white men and women. The novel identification strategy measures exposure to foreign STEM workers of age 18 native cohorts immediately before and after the policy change via geographic dispersion of foreign-born STEM workers in 1980, which predicts subsequent foreign STEM flows. The Act affected natives in three ways: 1) black male students moved away from STEM majors; 2) white male STEM graduates moved away from STEM occupations; and 3) white female STEM graduates moved out of the workforce.

Suggested Citation

  • Tyler Ransom & John V. Winters, 2021. "Do Foreigners Crowd Natives out of STEM Degrees and Occupations? Evidence from the US Immigration Act of 1990," ILR Review, Cornell University, ILR School, vol. 74(2), pages 321-351, March.
    • Handle: RePEc:sae:ilrrev:v:74:y:2021:i:2:p:321-351
    DOI: 10.1177/0019793919894554
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    Cited by:

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    2. Shimeng Liu & Weizeng Sun & John V. Winters, 2019. "Up In Stem, Down In Business: Changing College Major Decisions With The Great Recession," Contemporary Economic Policy, Western Economic Association International, vol. 37(3), pages 476-491, July.
    3. Bachli, Mirjam & Tsankova, Teodora, 2020. "Free movement of workers and native demand for tertiary education," CAGE Online Working Paper Series 515, Competitive Advantage in the Global Economy (CAGE).
    4. W. David Allen, 2024. "Strategic employment of immigrant and native workers: Was the green card lottery a game changer?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(1), pages 428-445, January.
    5. John V. Winters, 2017. "Do Native STEM Graduates Increase Innovation? Evidence from U.S. Metropolitan Areas," Economics Working Paper Series 1714, Oklahoma State University, Department of Economics and Legal Studies in Business.
    6. Russell Weinstein, 2022. "Local Labor Markets and Human Capital Investments," Journal of Human Resources, University of Wisconsin Press, vol. 57(5), pages 1498-1525.
    7. Daniel Crown & Alessandra Faggian, 2019. "Naturalization and the productivity of foreign-born doctorates," Journal of Geographical Systems, Springer, vol. 21(4), pages 533-556, December.
    8. David M. N. Mahon & Carlos J. Asarta, 2024. "Why are Schools Reclassifying Their Economics Major?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 50(1), pages 103-116, January.
    9. Brunello, Giorgio & Lodigiani, Elisabetta & Rocco, Lorenzo, 2017. "Does Low Skilled Immigration Cause Human Capital Polarization? Evidence from Italian Provinces," IZA Discussion Papers 11062, IZA Network @ LISER.
    10. Omid Bagheri, 2023. "Are College Graduate Immigrants on Work Visa Cheaper Than Natives?," Journal of Labor Research, Springer, vol. 44(3), pages 228-260, December.
    11. Papageorgiou, Athanasios, 2018. "The Effect of Immigration on the Well-Being of Native Populations: Evidence from the United Kingdom," MPRA Paper 93045, University Library of Munich, Germany.
    12. Hu, Shengrong & Winters, John, 2025. "Growing from the STEM? OPT Classification and International Students in Economics," ISU General Staff Papers 202512221706060000, Iowa State University, Department of Economics.
    13. 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.
    14. 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.
    15. Han, Luyi & Winters, John V., 2020. "Industry Fluctuations and College Major Choices: Evidence from an Energy Boom and Bust," Economics of Education Review, Elsevier, vol. 77(C).
    16. Bächli, Mirjam & Teodora Tsankova, 2020. "Free Movement of Workers and Native Demand for Tertiary Education," Economics Working Paper Series 2019, University of St. Gallen, School of Economics and Political Science.
    17. Massimo Anelli & Kevin Shih & Kevin Williams, 2017. "Foreign Peer Effects and STEM Major Choice," CESifo Working Paper Series 6466, CESifo.

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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