Skilled Immigration and the Employment Structures of U.S. Firms
We study the impact of skilled immigrants on the employment structures of U.S. firms using matched employer-employee data. Unlike most previous work, we use the firm as the lens of analysis to account for a greater level of heterogeneity and the fact that many skilled immigrant admissions are driven by firms themselves (e.g., the H-1B visa). OLS and IV specifications find rising overall employment of skilled workers with increased skilled immigrant employment by firm. Employment expansion is greater for younger natives than their older counterparts, and departure rates for older workers appear higher for those in STEM occupations compared to younger worker.
Comments are appreciated and can be sent to firstname.lastname@example.org. We especially thank Daniel Goroff and the Sloan Foundation for financial support for this project; we thank Daron Acemoglu, George Borjas, Prithwiraj Choudhury, Jim Davis, Gilles Duranton, Lee Fleming, Bronwyn Hall, Ron Hira, Larry Katz, Andrei Levchenko, Norm Matloff, Paul Oyer, Giovanni Peri, Jagadeesh Sivadasan, two referees, and seminar participants at American Economic Association 2013 Meetings, APPAM Fall 2012 Research Conference, Brandeis School of Business, Harvard University, Harvard Business School, John Hopkins SAIS, London Business School, London School of Economics, NBER 2012 Conference on High-Skill Immigration, NBER Productivity, Northeastern University, Research Institute of Industrial Economics, Richard Ivey School of Business, Rutgers Business School, Society of Labor Economics 2013 Meetings, University of California Berkeley Haas School of Business, University of Pennsylvania Wharton School, and Wellesley College for very helpful comments; and we thank Alexis Brownell and Christine Huang for excellent research assistance. William Kerr is a research affiliate of the Bank of Finland and thanks the Bank for hosting him during a portion of this project. The research in this paper was conducted while the authors were Special Sworn Status researchers of the US Census Bureau at the Boston Census Research Data Center (BRDC). Support for this research from NSF grant ITR-0427889 is gratefully acknowledged. Research results and conclusions expressed are the authors' and do not necessarily reflect the views of the Census Bureau or NSF. This paper has been screened to ensure that no confidential data are revealed. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Sari Pekkala Kerr & William R. Kerr & William F. Lincoln, 2015. "Skilled Immigration and the Employment Structures of US Firms," Journal of Labor Economics, University of Chicago Press, vol. 33(S1), pages S147 - S186. citation courtesy of