Working Paper: NBER ID: w20668
Authors: Kirk Doran; Alexander Gelber; Adam Isen
Abstract: We compare winning and losing firms in lotteries for H-1B visas, matching administrative data on these lotteries to administrative tax data on U.S. firms and to approved U.S. patents. Winning one additional H-1B visa crowds out about 1.5 other workers at the firm. Additional H-1Bs have insignificant and at most modest effects on firm innovation. More general evidence from the universe of U.S. firms and the universe of H-1B visas using alternative estimation strategies is consistent with these results. Firms that hire H-1Bs grow faster and innovate more because they are different in other ways from firms that do not.
Keywords: High-skilled immigration; H1B visas; Labor market; Firm innovation; Causal effects
JEL Codes: J18; J21; J23; J24; J44; J48; J61; O3; O32; O34; O38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Hiring additional H1B workers (J23) | Decrease in the employment of other workers (J29) |
| Winning firms (L25) | Do not grow faster than losing firms (D25) |
| Additional H1B workers (J69) | Increase firm profits (L21) |
| Additional H1B workers (J69) | Decrease payroll costs per employee (J39) |
| Winning one additional H1B visa (K37) | No increase in overall employment within the firm (J29) |
| Winning one additional H1B visa (K37) | Crowds out approximately 15 other workers at the firm (J29) |
| Additional H1B visas (J68) | Insignificant effects on firm innovation (O31) |