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Weighting the H-1B Lottery: Implications for Worker and Diversity and Employment Concentration

Author

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  • Sparber, Chad

    (Colgate University)

Abstract

The H-1B program allows firms in the United States to temporarily hire foreign workers in specialty occupations. Demand outstrips supply, and the government allocates status through a random lottery. In September 2025, The United States Department of Homeland Security (DHS) proposed a new lottery process that would weight applications favoring workers receiving higher wage offers. This short article demonstrates that a weighted lottery would increase the ethnic diversity of H-1B recipients. Implications for H-1B employment concentration are particularly sensitive to threshold cutoffs used to construct weights.

Suggested Citation

  • Sparber, Chad, 2025. "Weighting the H-1B Lottery: Implications for Worker and Diversity and Employment Concentration," IZA Discussion Papers 18333, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18333
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    Keywords

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    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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