The Supply Side of Innovation: H1B Visa Reforms and US Ethnic Invention

Working Paper: NBER ID: w15768

Authors: William R. Kerr; William F. Lincoln

Abstract: This study evaluates the impact of high-skilled immigrants on US technology formation. We use reduced-form specifications that exploit large changes in the H-1B visa program. Higher H-1B admissions increase immigrant science and engineering (SE) employment and patenting by inventors with Indian and Chinese names in cities and firms dependent upon the program relative to their peers. Most specifications find limited effects for native SE employment or patenting. We are able to rule out displacement effects, and small crowding-in effects may exist. Total SE employment and invention increases with higher admissions primarily through direct contributions of immigrants.

Keywords: H1B Visa; Innovation; Immigration; Technology; Patent

JEL Codes: F15; F22; J44; J61; O31


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
H1B admissions (K37)immigrant science and engineering (SE) employment (J68)
H1B admissions (K37)patenting rates among Indian and Chinese inventors (O34)
H1B admissions (K37)total invention (O39)
H1B admissions (K37)native SE employment (J68)

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