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Quotas and Quality: The Effect of H-1B Visa Restrictions on the Pool of Prospective Undergraduate Students from Abroad

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  • Takao Kato

    (Colgate University, IZA Bonn, Center on Japanese Economy and Business (Columbia Business School), Tokyo Center for Economic Research (University of Tokyo), and Center for Corporate Performance (Aarhus School of Business))

  • Chad Sparber

    (Colgate University and Centre for Research and Analysis of Migration (CReAM), University College London)

Abstract

In October 2003, the United States drastically reduced the number of H-1B visas available for foreign-born workers. Such restrictions could make U.S. colleges less attractive to foreign students considering an American education as a pathway to U.S. employment. Citizens from five countries are de facto exempt from the visa restrictions, however. Our difference-in-difference estimates show that restrictive immigration policy reduced SAT scores of international applicants by about 1.5% and decreased the number of SAT score reports sent by international students at the top quintile of the SAT score distribution. Restrictive immigration policy disproportionately discourages high-ability international students from pursuing education in the United States. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • 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.
    • Handle: RePEc:tpr:restat:v:95:y:2013:i:1:p:109-126
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    More about this item

    Keywords

    skilled immigration; immigrant selection; H-1B visa; college education; SAT scores;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I20 - Health, Education, and Welfare - - Education - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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