The Effect of the H-1B Quota on the Employment and Selection of Foreign-Born Labor

Anna Maria Mayda, Francesc Ortega, Giovanni Peri and Chad Sparber

No 12736, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The H-1B program allows skilled foreign-born individuals to work in the United States. The annual quota on new H-1B issuances fell from 195,000 to 65,000 for employees of most firms in fiscal year 2004. This cap did not apply to new employees of colleges, universities, and non-profit research institutions. Existing H-1B holders seeking to renew their visa were also exempt from the quota. Using a triple difference approach, this paper demonstrates that cap restrictions significantly reduced the employment of new H-1B workers in for-profit firms relative to what would have occurred in an unconstrained environment. Employment of similar natives in for-profit firms did not change, consistent with a low degree of substitutability between H-1B and native workers. The restriction also redistributed H-1Bs toward computer-related occupations, Indian-born workers, and firms using the H-1B program intensively.

Keywords: Skilled workers; H-1b; Natural experiment (search for similar items in EconPapers)
JEL-codes: F22 J61 O33 R10 (search for similar items in EconPapers)
Date: 2018-02
New Economics Papers: this item is included in nep-lab and nep-mig
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Citations: View citations in EconPapers (28)

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Related works:
Journal Article: The effect of the H-1B quota on the employment and selection of foreign-born labor (2018)
Working Paper: The Effect of the H-1B Quota on the Employment and Selection of Foreign-Born Labor (2018)
Working Paper: The Effect of the H-1B Quota on Employment and Selection of Foreign-Born Labor (2017)
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