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Skilled Immigration, Innovation and Wages of Native-born American

Author

Listed:
  • Asadul Islam
  • Faridul Islam
  • Chau Nguyen

Abstract

The paper examines the effects of skilled immigration on US wages that are due to innovation. We extend the studies by Hunt & Gauthier-Loiselle (2010), and Hunt (2011) to explore the immigration-innovation-wages nexus. Using the National Survey of College Graduates (NSCG) and the US Census datasets we find a significant positive effect of immigration on wages that are attributable to immigrants‘ contribution to innovation. Our findings suggest that as the share of skilled immigrants increases in a particular group, the wages of both natives and immigrants in that group get a positive boost. The effects are more pronounced through immigrants‘ impact on patent granted and patent commercialized, compared with their impact on other measures of innovations. The results also show that the immigrants are more likely to present a paper at a conference or publish in professional journals, primarily because they are more educated or concentrated in the related occupation compared to the natives. Our findings indicate that immigrants make a substantial contribution to the host economy‘s innovation which is a major driver of productivity growth.

Suggested Citation

  • Asadul Islam & Faridul Islam & Chau Nguyen, 2013. "Skilled Immigration, Innovation and Wages of Native-born American," Monash Economics Working Papers 10-13, Monash University, Department of Economics.
  • Handle: RePEc:mos:moswps:2013-10
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    References listed on IDEAS

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    Cited by:

    1. Keith McLeod & Richard Fabling & David C. Maré, 2014. "Hiring New Ideas: International Migration and Firm Innovation in New Zealand," Working Papers 14_14, Motu Economic and Public Policy Research.
    2. Daniel Crown & Alessandra Faggian, 2019. "Naturalization and the productivity of foreign-born doctorates," Journal of Geographical Systems, Springer, vol. 21(4), pages 533-556, December.
    3. Khanh Hoang, 2015. "Aiding innovation and entrepreneurship through migration policy: A view from Australia," International Journal of Social Sciences, International Institute of Social and Economic Sciences, vol. 4(3), pages 59-81, August.
    4. Yinjunjie Zhang & Marco A. Palma, 0. "The impact of the H-1B cap exemption on Ph.D. labor markets," Empirical Economics, Springer, vol. 0, pages 1-28.

    More about this item

    Keywords

    Innovation; immigration; wages;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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