Working Paper: NBER ID: w26767
Authors: Parag A. Pathak; Alex Rees-Jones; Tayfun Sönmez
Abstract: The H-1B Visa Reform Act of 2004 dictates an annual allocation of 85,000 visas with 20,000 reserved for advanced-degree applicants. We represent the main requirements of this legislation as formal axioms and characterize visa allocation rules consistent with the axioms. Despite the precise number reserved, we show that the range of implementations satisfying these axioms can change the allocation of advanced-degree visas by as much as 14,000 in an average year. Of all rules satisfying these axioms, the 2019 rule imposed by executive order is most favorable to advanced-degree holders. However, two earlier modifications resulted in larger changes, potentially unintentionally.
Keywords: H1B Visa; Immigration; Market Design; Skill Bias; Policy Reforms
JEL Codes: D47; D61; D63; J24; K37
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| 2019 visa allocation rule (Z38) | increase in visas awarded to advanced-degree holders (K37) |
| 2006 reform (E69) | reduction of approximately 14,000 visas awarded to advanced-degree applicants (Y40) |
| 2008 reform (E69) | increase of about 8,800 visas awarded to advanced-degree applicants (Y40) |
| allocation rule after H1B visa reform act of 2004 (J68) | degree of skill bias comparable to that of the 2019 reform (J24) |
| 2006 reform (E69) | larger year-to-year changes in skill bias compared to 2019 reform (J24) |