IDEAS home Printed from https://ideas.repec.org/p/lsu/lsuwpp/2014-06.html
   My bibliography  Save this paper

Inter-Firm Mobility and Return Migration Patterns of Skilled Guest Workers

Author

Listed:

Abstract

Critics of U.S. high-skilled guest worker visa programs argue that 1) program regulations tie workers to their sponsoring firm, creating working conditions akin to indentured servitude and that 2) the pro- grams lack a vehicle for adjusting downward the number of visas avail- able during a recession. We address these two criticisms using unique payroll data from firms that rely upon these programs. Contrary to popular belief, we find that the guest workers in our sample exhibit a significant amount of inter-firm mobility that varies over both the earn- ings distribution and the business cycle. This suggests that, despite regulatory frictions of the visa programs, competitive pressures are a driving force in this labor market. Furthermore, we find evidence of increased return migration during periods of high unemployment. This is especially true for lower paid workers, suggesting positive selection.

Suggested Citation

  • Briggs Depew & Peter Norlander & Todd A. Sorensen, 2014. "Inter-Firm Mobility and Return Migration Patterns of Skilled Guest Workers," Departmental Working Papers 2014-06, Department of Economics, Louisiana State University.
  • Handle: RePEc:lsu:lsuwpp:2014-06
    as

    Download full text from publisher

    File URL: http://bus.lsu.edu/McMillin/Working_Papers/pap14_06.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Michael R Ransom & David P. Sims, 2010. "Estimating the Firm's Labor Supply Curve in a "New Monopsony" Framework: Schoolteachers in Missouri," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 331-355, April.
    2. 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.
    3. George J. Borjas & Kirk B. Doran, 2012. "The Collapse of the Soviet Union and the Productivity of American Mathematicians," The Quarterly Journal of Economics, Oxford University Press, vol. 127(3), pages 1143-1203.
    4. Jennifer Hunt & Marjolaine Gauthier-Loiselle, 2010. "How Much Does Immigration Boost Innovation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 31-56, April.
    5. Lofstrom, Magnus & Hayes, Joseph, 2011. "H-1Bs: How Do They Stack Up to US Born Workers?," IZA Discussion Papers 6259, Institute for the Study of Labor (IZA).
    6. Gary Solon & Warren Whatley & Ann Huff Stevens, 1997. "Wage Changes and Intrafirm Job Mobility over the Business Cycle: Two Case Studies," ILR Review, Cornell University, ILR School, vol. 50(3), pages 402-415, April.
    7. Dustmann, Christian, 2003. "Return migration, wage differentials, and the optimal migration duration," European Economic Review, Elsevier, vol. 47(2), pages 353-369, April.
    8. Julie L. Hotchkiss & Myriam Quispe‐Agnoli, 2013. "The Expected Impact of State Immigration Legislation on Labor Market Outcomes," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 32(1), pages 34-59, January.
    9. 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.
    10. Farber, Henry S, 1994. "The Analysis of Interfirm Worker Mobility," Journal of Labor Economics, University of Chicago Press, vol. 12(4), pages 554-593, October.
    11. Depew, Briggs & Sørensen, Todd A., 2013. "The elasticity of labor supply to the firm over the business cycle," Labour Economics, Elsevier, vol. 24(C), pages 196-204.
    12. Moshe Buchinsky & Denis Fougère & Francis Kramarz & Rusty Tchernis, 2010. "Interfirm Mobility, Wages and the Returns to Seniority and Experience in the United States," Review of Economic Studies, Oxford University Press, vol. 77(3), pages 972-1001.
    13. William R. Kerr & William F. Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and U.S. Ethnic Invention," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 473-508, July.
    14. Jahn, Elke & Hirsch, Boris, 2012. "Is there monopsonistic discrimination against immigrants? First evidence from linked employer employee data," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 65417, Verein für Socialpolitik / German Economic Association.
    15. Hirsch, Boris & Jahn, Elke J. & Schnabel, Claus, 2013. "The cyclical behaviour of employers' monopsony power and workers' wages," Discussion Papers 89, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    16. Boris Hirsch & Elke J. Jahn, 2015. "Is There Monopsonistic Discrimination against Immigrants?," ILR Review, Cornell University, ILR School, vol. 68(3), pages 501-528, May.
    17. John Bound & Breno Braga & Joseph M. Golden & Gaurav Khanna, 2015. "Recruitment of Foreigners in the Market for Computer Scientists in the United States," Journal of Labor Economics, University of Chicago Press, vol. 33(S1), pages 187-223.
    18. Paul J. Devereux & Robert A. Hart, 2006. "Real Wage Cyclicality of Job Stayers, Within-Company Job Movers, and Between-Company Job Movers," ILR Review, Cornell University, ILR School, vol. 60(1), pages 105-119, October.
    19. Hirsch, Boris & Schank, Thorsten & Schnabel, Claus, 2006. "Gender Differences in Labor Supply to Monopsonistic Firms : An Empirical Analysis Using Linked Employer-Employee Data from Germany," Discussion Papers 47, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    20. Brian C. Cadena & Brian K. Kovak, 2016. "Immigrants Equilibrate Local Labor Markets: Evidence from the Great Recession," American Economic Journal: Applied Economics, American Economic Association, vol. 8(1), pages 257-290, January.
    21. Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-273, May.
    22. Webber, Douglas A., 2015. "Firm market power and the earnings distribution," Labour Economics, Elsevier, vol. 35(C), pages 123-134.
    23. Linda Datcher Loury, 2006. "Some Contacts Are More Equal than Others: Informal Networks, Job Tenure, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 299-318, April.
    24. Ran Abramitzky & Leah Platt Boustan & Katherine Eriksson, 2014. "A Nation of Immigrants: Assimilation and Economic Outcomes in the Age of Mass Migration," Journal of Political Economy, University of Chicago Press, vol. 122(3), pages 467-506.
    25. Norman Matloff, 2013. "Immigration and the tech industry: As a labour shortage remedy, for innovation, or for cost savings?," Migration Letters, Transnational Press London, UK, vol. 10(2), pages 210-227, May.
    26. Suresh Naidu & Yaw Nyarko & Shing-Yi Wang, 2014. "Worker Mobility in a Global Labor Market: Evidence from the United Arab Emirates," NBER Working Papers 20388, National Bureau of Economic Research, Inc.
    27. Sankar Mukhopadhyay & David Oxborrow, 2012. "The Value of an Employment-Based Green Card," Demography, Springer;Population Association of America (PAA), vol. 49(1), pages 219-237, February.
    28. Boris Hirsch & Thorsten Schank & Claus Schnabel, 2010. "Differences in Labor Supply to Monopsonistic Firms and the Gender Pay Gap: An Empirical Analysis Using Linked Employer-Employee Data from Germany," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 291-330, April.
    29. Julie L. Hotchkiss & Myriam Quispe-Agnoli, 2009. "Employer monopsony power in the labor market for undocumented workers," FRB Atlanta Working Paper 2009-14, Federal Reserve Bank of Atlanta.
    30. Alan Hyde, 1998. "Silicon Valley'S High-Velocity Labor Market," Journal of Applied Corporate Finance, Morgan Stanley, vol. 11(2), pages 28-37.
    31. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hunt, Jennifer, 2017. "How Restricted is the Job Mobility of Skilled Temporary Work Visa Holders?," CEPR Discussion Papers 12106, C.E.P.R. Discussion Papers.
    2. repec:iza:izawol:journl:2017:n:355 is not listed on IDEAS

    More about this item

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lsu:lsuwpp:2014-06. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/delsuus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.