The Value of H-1B Status in Times of Scarcity

Chad Sparber

No 1510, RFBerlin Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin)

Abstract: For-profit firms are limited in their ability to hire new, foreign-born, highly-educated workers after quotas on H-1B work permits are met each year, though they are able to hire existing H-1B workers. Universities and other non-profit research institutions do not face the same restrictions. Using difference in- difference methodology, this paper estimates the marginal value of an accepted H-1B job offer — in the form of wages — at for-profit firms after quotas have been met. Lower-bound estimates suggest a 1% wage premium with the largest differences occurring in the first month after meeting the quota. At least some of these effects are attributable to wage increases within narrowly-defined groups of workers during years in which available H-1B permits are quickly exhausted. These results provide indirect evidence that H-1B workers are imperfectly substitutable with other labor sources.

Keywords: Skilled Workers; H-1B Work Permit; Immigration; Difference-in-Difference (search for similar items in EconPapers)
JEL-codes: F22 J61 (search for similar items in EconPapers)
Date: 2015-09
New Economics Papers: this item is included in nep-lab and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:crm:wpaper:1510

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