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Skilled Immigration and the Employment Structures of U.S. Firms

Author

Listed:
  • Sari Pekkala Kerr

    () (Wellesley College)

  • William R. Kerr

    () (Harvard Business School, Entrepreneurial Management Unit)

  • William F. Lincoln

    () (John Hopkins University)

Abstract

We study the impact of skilled immigrants on the employment structures of U.S. firms using matched employer-employee data. Unlike most previous work, we use the firm as the lens of analysis to account for a greater level of heterogeneity and the fact that many skilled immigrant admissions are driven by firms themselves (e.g., the H-1B visa). OLS and IV specifications find rising overall employment of skilled workers with increased skilled immigrant employment by firm. Employment expansion is greater for younger natives than their older counterparts, and departure rates for older workers appear higher for those in STEM occupations compared to younger worker.

Suggested Citation

  • Sari Pekkala Kerr & William R. Kerr & William F. Lincoln, 2013. "Skilled Immigration and the Employment Structures of U.S. Firms," Harvard Business School Working Papers 14-040, Harvard Business School.
  • Handle: RePEc:hbs:wpaper:14-040
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    References listed on IDEAS

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    Cited by:

    1. Nir Jaimovich & Henry E. Siu, 2017. "High-Skilled Immigration, STEM Employment, and Nonroutine-Biased Technical Change," NBER Chapters,in: High-Skilled Migration to the United States and its Economic Consequences, pages 177-204 National Bureau of Economic Research, Inc.
    2. Sari Pekkala Kerr & William R. Kerr & William F. Lincoln, 2015. "Firms and the Economics of Skilled Immigration," Innovation Policy and the Economy, University of Chicago Press, vol. 15(1), pages 115-152.
    3. Gordon H. Hanson & Matthew J. Slaughter, 2017. "High-Skilled Immigration and the Rise of STEM Occupations in US Employment," NBER Chapters,in: Education, Skills, and Technical Change: Implications for Future US GDP Growth National Bureau of Economic Research, Inc.
    4. Sari Pekkala Kerr & William R. Kerr, 2016. "Immigrant Entrepreneurship," NBER Chapters,in: Measuring Entrepreneurial Businesses: Current Knowledge and Challenges, pages 187-249 National Bureau of Economic Research, Inc.
    5. Sari Pekkala Kerr & William R. Kerr, 2015. "Global Collaborative Patents," NBER Working Papers 21735, National Bureau of Economic Research, Inc.
    6. Gordon L. Clark, 2016. "The Components of Talent: Company Size and Financial Centres in the European Investment Management Industry," Regional Studies, Taylor & Francis Journals, vol. 50(1), pages 168-181, January.
    7. Matthias Parey & Jens Ruhose & Fabian Waldinger & Nicolai Netz, 2017. "The Selection of High-Skilled Emigrants," The Review of Economics and Statistics, MIT Press, vol. 99(5), pages 776-792, December.
    8. 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 for the Study of Labor (IZA).
    9. Max Nathan, 2014. "The wider economic impacts of high-skilled migrants: a survey of the literature for receiving countries," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-20, December.
    10. 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.
    11. William R. Kerr & William F. Lincoln & Prachi Mishra, 2014. "The Dynamics of Firm Lobbying," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 343-379, November.
    12. Briggs Depew & Peter Norlander & Todd A. Sørensen, 2017. "Inter-firm mobility and return migration patterns of skilled guest workers," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(2), pages 681-721, April.
    13. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, Elsevier.
    14. William R. Kerr & Martin Mandorff, 2015. "Social Networks, Ethnicity, and Entrepreneurship," NBER Working Papers 21597, National Bureau of Economic Research, Inc.
    15. Nathan, Max, 2014. "Top Team Diversity and Business Performance: Latent Class Analysis for Firms and Cities," IZA Discussion Papers 8462, Institute for the Study of Labor (IZA).
    16. Ghani,Syed Ejaz & Grover,Arti & Kerr,Sari & Kerr,William Robert, 2016. "Will market competition trump gender discrimination in India ?," Policy Research Working Paper Series 7814, The World Bank.
    17. Gordon H. Hanson & Chen Liu, 2017. "High-Skilled Immigration and the Comparative Advantage of Foreign-Born Workers across US Occupations," NBER Chapters,in: High-Skilled Migration to the United States and its Economic Consequences, pages 7-40 National Bureau of Economic Research, Inc.
    18. Thomas Kemeny & Abigail Cooke, 2018. "Spillovers from immigrant diversity in cities," Journal of Economic Geography, Oxford University Press, vol. 18(1), pages 213-245.
    19. Christoph Basten & Michael Siegenthaler, 2013. "Do immigrants take or create residents' jobs?," KOF Working papers 13-335, KOF Swiss Economic Institute, ETH Zurich.
    20. Jennifer Hunt, 2015. "Are Immigrants the Most Skilled US Computer and Engineering Workers?," Journal of Labor Economics, University of Chicago Press, vol. 33(S1), pages 39-77.
    21. Kirk Doran & Alexander Gelber & Adam Isen, 2014. "The Effects of High-Skilled Immigration Policy on Firms: Evidence from H-1B Visa Lotteries," NBER Working Papers 20668, National Bureau of Economic Research, Inc.
    22. Tavassoli, Sam & Trippl, Michaela, 2017. "The Impact of Ethnic Communities on Immigrant Entrepreneurship: Evidence from Sweden," Papers in Innovation Studies 2017/17, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    23. Siegenthaler, Michael & Basten, Christoph, 2013. "Do immigrants take or create residents jobs? Quasi-experimental evidence from Switzerland," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79780, Verein für Socialpolitik / German Economic Association.
    24. Mahroum, Sami & Zahradnik, Georg & Dachs, Bernhard, 2017. "Ethnic Inventors: A Critical Survey of the Contribution of People of Middle Eastern Ethnic Backgrounds to the US Innovation System," MPRA Paper 77869, University Library of Munich, Germany.

    More about this item

    Keywords

    Immigration; Employment; Firms; Age; Scientists; Engineers; Inventors; H-1B.;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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