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

Anna Maria Mayda, Francesc Ortega, Giovanni Peri, Kevin Shih () and Chad Sparber

No 23902, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The H-1B program allows skilled foreign-born individuals to work in the United States. The annual quota on new H-1B visa issuances fell from 195,000 to 65,000 for employees of most firms in fiscal year 2004. However, this cap did not apply to new employees of colleges, universities, and non-profit research institutions. Additionally, 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 native workers in for profit firms did not change, however, consistently with a low degree of substitutability between H1B and native workers. The restriction also redistributed H-1Bs toward computer-related occupations, Indian-born workers, and firms using the H-1B program intensively.

JEL-codes: F22 J61 O33 R10 (search for similar items in EconPapers)
Date: 2017-10
New Economics Papers: this item is included in nep-cta, nep-lab and nep-mig
Note: LS PR
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Citations: View citations in EconPapers (7)

Published as Anna Maria Mayda & Francesc Ortega & Giovanni Peri & Kevin Shih & Chad Sparber, 2018. "The Effect of the H-1B Quota on the Employment and Selection of Foreign-Born Labor," European Economic Review, .

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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 the Employment and Selection of Foreign-Born Labor (2018)
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