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George J. Borjas
NBER Working Paper No. 12085*
Issued in March 2006
NBER Program(s): LS
An NBER digest for this paper is available.
---- Abstract -----
The rapid growth in the number of foreign students enrolled in American universities has transformed the higher education system, particularly at the graduate level. Many of these newly minted doctorates remain in the United States after receiving their doctoral degrees, so that the foreign student influx can have a significant impact in the labor market for high-skill workers. Using data drawn from the Survey of Earned Doctorates and the Survey of Doctoral Recipients, the study shows that a foreign student influx into a particular doctoral field at a particular time had a significant and adverse effect on the earnings of doctorates in that field who graduated at roughly the same time. A 10 percent immigration-induced increase in the supply of doctorates lowers the wage of competing workers by about 3 to 4 percent. About half of this adverse wage effect can be attributed to the increased prevalence of low-pay postdoctoral appointments in fields that have softer labor market conditions because of large-scale immigration.
*Published: Borjas, George J. "Native Internal Migration and The Labor Market Impact Of Immigration," Journal of Human Resources, 2006, v41(2,Spring), 221-258.
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