NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

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

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

NBER Working Paper No. 23902
Issued in October 2017
NBER Program(s):Labor Studies Program, Productivity, Innovation, and Entrepreneurship Program

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.

download in pdf format
   (658 K)

email paper

A non-technical summary of this paper is available in the December 2017 NBER Digest.  You can sign up to receive the NBER Digest by email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w23902

Published: 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, . citation courtesy of

Users who downloaded this paper also downloaded* these:
Foster and Rosenzweig w23909 Are There Too Many Farms in the World? Labor-Market Transaction Costs, Machine Capacities and Optimal Farm Size
Bound, Khanna, and Morales w23153 Understanding the Economic Impact of the H-1B Program on the U.S.
Peri, Shih, and Sparber w21175 Foreign and Native Skilled Workers: What Can We Learn from H-1B Lotteries?
Doran, Gelber, and Isen w20668 The Effects of High-Skilled Immigration Policy on Firms: Evidence from H-1B Visa Lotteries
Bakkensen and Barrage w23854 Flood Risk Belief Heterogeneity and Coastal Home Price Dynamics: Going Under Water?
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us