Working Paper: NBER ID: w27040
Authors: Sari Pekkala Kerr; William R. Kerr
Abstract: Immigrants account for about a quarter of US invention and entrepreneurship despite a policy environment that is not well suited for these purposes. This chapter reviews the US immigration policy environment that governs how skilled migrants move to America for employment-based purposes. We discuss points of strain in the current system and potential policy reforms that would likely increase the rate of innovation and the number of startups due to immigrants in the country. Key areas include adjustments to the allocation of permanent residency visas, adjustments to the H-1B visa program, and the creation of an immigrant startup visa.
Keywords: immigration; innovation; entrepreneurship; startup visa; H1B visa
JEL Codes: F22; F23; J15; J44; J61; L26; M13; O31; O32; O33
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Immigration policy reforms (K37) | rate of innovation (O35) |
| Immigration policy reforms (K37) | number of startups (M13) |
| H1B visa program adjustments (J68) | number of startups (M13) |
| H1B visa program adjustments (J68) | rate of innovation (O35) |
| Introduction of a startup visa (M13) | number of immigrant-founded startups (L26) |
| Reduction of green card wait times (K37) | entrepreneurial activities of skilled immigrants (J61) |
| Immigrant presence (F22) | innovation rates (O39) |
| Immigrant status (K37) | entrepreneurial outcomes (L26) |