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H-1Bs: How Do They Stack Up to US Born Workers?

Author

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  • Lofstrom, Magnus

    (Public Policy Institute of California)

  • Hayes, Joseph

    (Public Policy Institute of California)

Abstract

Combining unique individual level H-1B data from U.S. Citizenship and Immigration Services (USCIS) and data from the 2009 American Community Survey, we analyze earnings differences between H-1B visa holders and US born workers in STEM occupations. The data indicate that H-1Bs are younger and more skilled, as measured by education, than US born workers in the same occupations. We fail to find support for the notion that H-1Bs are paid less that observationally similar US born workers; in fact, they appear to have higher earnings in some key STEM occupations, including information technology.

Suggested Citation

  • Lofstrom, Magnus & Hayes, Joseph, 2011. "H-1Bs: How Do They Stack Up to US Born Workers?," IZA Discussion Papers 6259, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6259
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    References listed on IDEAS

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    1. Sunil Mithas & Henry C. Lucas, Jr., 2010. "Are Foreign IT Workers Cheaper? U.S. Visa Policies and Compensation of Information Technology Professionals," Management Science, INFORMS, vol. 56(5), pages 745-765, May.
    2. Jennifer Hunt, 2011. "Which Immigrants Are Most Innovative and Entrepreneurial? Distinctions by Entry Visa," Journal of Labor Economics, University of Chicago Press, vol. 29(3), pages 417-457.
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    Cited by:

    1. Sari Pekkala Kerr & William R. Kerr & William F. Lincoln, 2015. "Skilled Immigration and the Employment Structures of US Firms," Journal of Labor Economics, University of Chicago Press, vol. 33(S1), pages 147-186.
    2. Chad Sparber, 2015. "The Value of H-1B Status in Times of Scarcity," RF Berlin - CReAM Discussion Paper Series 1510, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    3. 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.
    4. Sari Pekkala Kerr & William Kerr & Çağlar Özden & Christopher Parsons, 2017. "High-Skilled Migration and Agglomeration," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 201-234, September.
    5. 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 of Labor Economics (IZA).
    6. 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.
    7. Morgan Raux, 2019. "Looking for the "Best and Brightest": Hiring difficulties and high-skilled foreign workers," Working Papers halshs-02364921, HAL.
    8. Chassamboulli, Andri & Peri, Giovanni, 2020. "The economic effect of immigration policies: analyzing and simulating the U.S. case," Journal of Economic Dynamics and Control, Elsevier, vol. 114(C).
    9. 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.
    10. Abdurrahman Aydemir, 2013. "Skill-based immigrant selection and labor market outcomes by visa category," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 23, pages 432-452, Edward Elgar Publishing.
    11. Jennifer Hunt, 2013. "Are Immigrants the Best and Brightest U.S. Engineers?," NBER Working Papers 18696, National Bureau of Economic Research, Inc.
    12. Sparber, Chad, 2019. "Substitution between groups of highly-educated, foreign-born, H-1B workers," Labour Economics, Elsevier, vol. 61(C).
    13. 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.
    14. Robert Clifford, 2014. "Demand for H-1B visas in New England: an analysis of employer requests for highly-skilled guest workers," New England Public Policy Center Policy Reports 14-1, Federal Reserve Bank of Boston.
    15. Britta Glennon, 2020. "How Do Restrictions on High-Skilled Immigration Affect Offshoring? Evidence from the H-1B Program," NBER Working Papers 27538, National Bureau of Economic Research, Inc.
    16. repec:zbw:bofrdp:2017_007 is not listed on IDEAS
    17. Sari Pekkala Kerr & William Kerr & Çağlar Özden & Christopher Parsons, 2017. "High-Skilled Migration and Agglomeration," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 201-234, September.

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    More about this item

    Keywords

    temporary workers; H-1B; immigration; high-skill; STEM;
    All these keywords.

    JEL classification:

    • J8 - Labor and Demographic Economics - - Labor Standards
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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