Skilled Immigration Frictions as a Barrier for Young Firms

Federico Mandelman, Mehra dup Mishita () and Hewei Shen ()
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Mehra dup Mishita: https://robins.richmond.edu/faculty/mmehra/

No 2024-2, FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta

Abstract: This paper studies the impact of skilled immigration policy frictions in the United States on technology-intensive firms by age cohorts. We use firm-level data and a general equilibrium model with endogenous firm entry and exit. The empirical results show that skilled immigration policy frictions directly influence young firm dynamics in technology-intensive sectors by affecting firm survival. Our general equilibrium model incorporates skilled foreign labor and immigration policy frictions that mimic the H-1B policy and matches the age distribution of firms in high-technology sectors, showing also that increased entry of younger firms leads to a greater exit of older firms.

Keywords: skilled immigration; start-ups; high-technology firms; firm dynamics (search for similar items in EconPapers)
JEL-codes: F22 M13 (search for similar items in EconPapers)
Pages: 34
Date: 2024-02-05
New Economics Papers: this item is included in nep-bec, nep-dge, nep-ent, nep-int, nep-mig and nep-sbm
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Published in 2024

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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedawp:97726

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DOI: 10.29338/wp2024-02

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