High-Skill Immigration, Innovation, and Creative Destruction

Gaurav Khanna and Munseob Lee

No 24824, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Economists have identified product entry and exit as a primary channel through which innovation impacts economic growth. In this paper, we document how high-skill immigration affects product reallocation (entry and exit) at the firm level. Using data on H-1B Labor Condition Applications (LCAs) matched to retail scanner data on products and Compustat data on firm characteristics, we find that H-1B certification is associated with higher product reallocation and revenue growth. A ten percent increase in the share of H-1B workers is associated with a two percent increase in product reallocation rates – our measure of innovation. These results shed light on the economic consequences of innovation by high-skill immigrant to the United States.

JEL-codes: D22 D24 F22 J61 (search for similar items in EconPapers)
Date: 2018-07
New Economics Papers: this item is included in nep-bec, nep-ent, nep-int, nep-lab, nep-mig and nep-tid
Note: LS PR
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Citations: View citations in EconPapers (3)

Published as High-Skill Immigration, Innovation, and Creative Destruction , Gaurav Khanna, Munseob Lee. in The Roles of Immigrants and Foreign Students in US Science, Innovation, and Entrepreneurship , Ganguli, Kahn, and MacGarvie. 2020

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