Working Paper: NBER ID: w19658
Authors: Sari Pekkala Kerr; William R. Kerr; William F. Lincoln
Abstract: 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.
Keywords: skilled immigration; employment structures; US firms; H-1B visa
JEL Codes: F15; F22; J44; J61; O31; O32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| increases in a firm's young skilled immigrant employment (J68) | rise in the total skilled workforce of the firm (J24) |
| increases in a firm's young skilled immigrant employment (J68) | higher employment of younger natives (J69) |
| increases in a firm's young skilled immigrant employment (J68) | higher departure rates for older workers (J26) |
| employment of young skilled immigrants (J68) | raises the immigrant share of the skilled workforce (J61) |
| employment of young skilled immigrants (J68) | reduces the older worker share (J26) |
| increases in a firm's young skilled immigrant employment (J68) | increases overall size of the firm (L25) |