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Looking for the “Best and Brightest": Hiring difficulties and high-skilled foreign workers

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  • Morgan Raux

    (Department of Economics and Management, Université du Luxembourg)

Abstract

This paper studies the complementarity between domestic and foreign skilled workers. It develops a simple model where employers seek to recruit a foreign worker when finding domestic workers takes more time. This paper confirms the predictions of the model. I rely on a within-firm within-occupation identification strategy to compare recruitment decisions made by a given employer for similar positions that differ in job posting duration. To identify this relationship, I have collected and assembled a new and original dataset at the job level. I match online job postings to administrative data on labor condition applications (LCAs) submitted as the first step in applying for H-1B temporary skilled worker visas. I find that employers are 28 percent more likely to submit an LCA when the job posting duration is one standard deviation longer. I provide evidence suggesting that this phenomenon is due to insufficient domestic labor supply in these occupations.

Suggested Citation

  • Morgan Raux, 2021. "Looking for the “Best and Brightest": Hiring difficulties and high-skilled foreign workers," DEM Discussion Paper Series 21-05, Department of Economics at the University of Luxembourg.
  • Handle: RePEc:luc:wpaper:21-05
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    More about this item

    Keywords

    H-1B Work Permit; Hiring difficulties; Web Scraping.;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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