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

  • Sari Pekkala Kerr

    ()

    (Wellesley College)

  • William R. Kerr

    ()

    (Harvard Business School, Entrepreneurial Management Unit)

  • William F. Lincoln

    ()

    (John Hopkins University)

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.

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Paper provided by Harvard Business School in its series Harvard Business School Working Papers with number 14-040.

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Length: 48 pages
Date of creation: Nov 2013
Date of revision:
Handle: RePEc:hbs:wpaper:14-040
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