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The Effects of High-Skilled Immigration Policy on Firms: Evidence from Visa Lotteries

Author

Listed:
  • Doran, Kirk

    (University of Notre Dame)

  • Gelber, Alexander

    (University of Pennsylvania)

  • Isen, Adam

    (U.S. Department of the Treasury)

Abstract
We compare winning and losing firms in lotteries for H-1B visas, matching administrative data on these lotteries to administrative tax data on U.S. firms and to approved U.S. patents. Winning one additional H-1B visa crowds out about 1.5 other workers at the firm. Additional H-1Bs have insignificant and at most modest effects on firm innovation. More general evidence from the universe of U.S. firms and the universe of H-1B visas using alternative estimation strategies is consistent with these results. Firms that hire H-1Bs grow faster and innovate more because they are different in other ways from firms that do not.

Suggested Citation

  • Doran, Kirk & Gelber, Alexander & Isen, Adam, 2022. "The Effects of High-Skilled Immigration Policy on Firms: Evidence from Visa Lotteries," IZA Discussion Papers 15146, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15146
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    References listed on IDEAS

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    More about this item

    Keywords

    immigration; highly skilled workforce; innovation; employment;
    All these keywords.

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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