US Permanent Residency, Job Mobility, and Earnings

Xuening Wang

Journal of Labor Economics, 2021, vol. 39, issue 3, 639 - 671

Abstract: One concern regarding US immigration policies is that skilled workers on temporary visas may be bound to their employers in “indentured servitude,” giving rise to monopsony power. I investigate this concern by estimating the effect of acquiring permanent residency on the job mobility and earnings of these workers. Using fixed effects models, I find an immediate upsurge in mobility upon permanent residency receipt, primarily driven by voluntary moving being depressed during the employer-sponsored immigration process. Job lock reduces the earnings of male workers by 4.7%, which translates to a 2% surplus for firms after extra hiring costs are subtracted.

Date: 2021
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