The effect of the H-1B quota on the employment and selection of foreign-born labor

B-Tier
Journal: European Economic Review
Year: 2018
Volume: 108
Issue: C
Pages: 105-128

Score contribution per author:

0.402 = (α=2.01 / 5 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The H-1B program allows skilled foreign-born individuals to work in the United States. The annual quota on new issuances of H-1B status fell from 195,000 to 65,000 in fiscal year 2004. This cap did not apply to new employees of colleges, universities, and non-profit research institutions. Existing H-1B holders seeking to renew their status were also exempt from the quota. Using a triple difference approach, this paper demonstrates that cap restrictions significantly reduced the hiring of new H-1B workers in for-profit firms relative to what would have occurred in an unconstrained environment. Declines were most pronounced at the top and bottom quintiles of the wage distribution. Restrictions did not reduce hiring of new H-1B workers from India, in computer-related occupations, or at firms using the H-1B program intensively.

Technical Details

RePEc Handle
repec:eee:eecrev:v:108:y:2018:i:c:p:105-128
Journal Field
General
Author Count
5
Added to Database
2026-01-26