Economics at your fingertips  

High‐Skilled Immigration and the Labor Market: Evidence from the H‐1B Visa Program

Patrick Turner ()

Journal of Policy Analysis and Management, 2022, vol. 41, issue 1, 92-130

Abstract: This paper investigates the effect of high‐skilled immigration on the wages of U.S.‐born college graduates. Descriptive evidence suggests that workers with different college majors compete in separate labor markets. Because immigrants are more likely than natives to study Science, Technology, Engineering, and Mathematics (STEM), a standard labor market model predicts that the relative wages of native STEM majors should fall as skilled immigration increases. Using an IV strategy that leverages large changes in the cap of H‐1B visas and controls for major‐ and age‐specific unobservable characteristics, I find that workers most exposed to increased competition from immigration have lower wages than one would expect. A 10‐percentage point increase in a skill group's immigrant‐native ratio decreases their relative wages by 1 percent. Overall, I estimate that the STEM wage premium decreased 4 to 12 percentage points from 1990 to 2010 because of immigration.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Journal of Policy Analysis and Management from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2023-03-26
Handle: RePEc:wly:jpamgt:v:41:y:2022:i:1:p:92-130