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High-Skilled Immigration, STEM Employment, and Non-Routine-Biased Technical Change

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  • Nir Jaimovich
  • Henry E. Siu

Abstract

We study the role of foreign-born workers in the growth of employment in STEM occupations since 1980. Given the importance of employment in these fields for research and innovation, we consider their role in a model featuring endogenous non-routine-biased technical change. We use this model to quantify the impact of high-skilled immigration, and the increasing tendency of such immigrants to work in innovation, on the pace of non-routine-biased technical change, the polarization of employment opportunities, and the evolution of wage inequality since 1980.

Suggested Citation

  • Nir Jaimovich & Henry E. Siu, 2017. "High-Skilled Immigration, STEM Employment, and Non-Routine-Biased Technical Change," NBER Working Papers 23185, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:23185
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    References listed on IDEAS

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    1. Nir Jaimovich & Henry E. Siu, 2012. "The Trend is the Cycle: Job Polarization and Jobless Recoveries," NBER Working Papers 18334, National Bureau of Economic Research, Inc.
    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. 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.
    4. Guido Matias Cortes & Nir Jaimovich & Christopher J. Nekarda & Henry E. Siu, 2014. "The Micro and Macro of Disappearing Routine Jobs: A Flows Approach," NBER Working Papers 20307, National Bureau of Economic Research, Inc.
    5. 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.
    6. Jaewon Jung & Jean Mercenier, 2014. "Routinization-Biased Technical Change And Globalization: Understanding Labor Market Polarization," Economic Inquiry, Western Economic Association International, vol. 52(4), pages 1446-1465, October.
    7. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    8. Maarten Goos & Alan Manning, 2007. "Lousy and Lovely Jobs: The Rising Polarization of Work in Britain," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 118-133, February.
    9. Chiswick, Barry R. & Taengnoi, Sarinda, 2007. "Occupational Choice of High Skilled Immigrants in the United States," IZA Discussion Papers 2969, Institute for the Study of Labor (IZA).
    10. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    11. Gordon H. Hanson & Matthew J. Slaughter, 2017. "High-Skilled Immigration and the Rise of STEM Occupations in US Employment," NBER Chapters,in: Education, Skills, and Technical Change: Implications for Future US GDP Growth National Bureau of Economic Research, Inc.
    12. Firpo, Sergio & Fortin, Nicole M. & Lemieux, Thomas, 2011. "Occupational Tasks and Changes in the Wage Structure," IZA Discussion Papers 5542, Institute for the Study of Labor (IZA).
    13. Maarten Goos & Alan Manning & Anna Salomons, 2014. "Explaining Job Polarization: Routine-Biased Technological Change and Offshoring," American Economic Review, American Economic Association, vol. 104(8), pages 2509-2526, August.
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    16. 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.
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    19. Francesco Caselli, 2014. "Experience-biased Technical Change," Discussion Papers 1517, Centre for Macroeconomics (CFM), revised Jul 2015.
    20. 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.
    21. Giovanni Peri & Chad Sparber, 2011. "Highly Educated Immigrants and Native Occupational Choice," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(3), pages 385-411, July.
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    24. repec:eee:moneco:v:91:y:2017:i:c:p:69-87 is not listed on IDEAS
    25. Cortes, Guido Matias & Jaimovich, Nir & Siu, Henry E., 2017. "Disappearing routine jobs: Who, how, and why?," Journal of Monetary Economics, Elsevier, vol. 91(C), pages 69-87.
    26. Caselli, Francesco, 2015. "Experience-biased technical change," LSE Research Online Documents on Economics 86294, London School of Economics and Political Science, LSE Library.
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    Cited by:

    1. Gouranga Gopal Das & Sugata Marjit, 2018. "Skill, Innovation and Wage Inequality: Can Immigrants be the Trump Card?," CESifo Working Paper Series 7082, CESifo Group Munich.

    More about this item

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • J0 - Labor and Demographic Economics - - General

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