Building a Better H-1B Program

Chad Sparber

No 1513, RF Berlin - CReAM Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM)

Abstract: The H-1B program allows highly-educated foreign-born labor to temporarily work in the United States. Quotas restrict the number of labor force entrants, however. In many years, all available work permits were allocated by random lottery. This paper argues that an alternative distribution method based upon ability would increase output, output per worker, and wages paid to less-educated workers. Baseline estimates suggest that a change in allocation policy could result in a $26.5 billion gain for the economy over a six year period. This estimate grows when H-1B demand rises.

Keywords: Skilled Workers; H-1B Work Permit; Immigration (search for similar items in EconPapers)
JEL-codes: F22 J61 (search for similar items in EconPapers)
Date: 2015-10
New Economics Papers: this item is included in nep-lab and nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:crm:wpaper:1513

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