Full Citation
Title: How High Skilled Immigrants Affect Natives' Educational and Occupational Choices
Citation Type: Miscellaneous
Publication Year: 2015
ISBN:
ISSN:
DOI:
NSFID:
PMCID:
PMID:
Abstract: How will the inow of foreign computer scientists to U.S. labour market aect wages, employment, educational and occupational choices of native skilled workers? This paper structurally estimates a dynamic discrete choice model using data from U.S. Current Population Survey (CPS) and American Community Survey (ACS) over two decades (1994-2014). The structural estimation framework that I develop fully imposes the restrictions of optimization theory and permits an investigation of whether such a theoretically restricted model can succeed in quantitatively tting the observed employment and wage data patterns. I generalize the static Roy model to a dynamic general equilibrium setting where natives make choices based on their comparative advantages. Using suciently exible sector production functions, I nd skilled immigrants and natives are imperfect substitutes. Substitution elasticities vary across occupations, 5.73 for computer science (CS) sector and 1.97 for other science technology engineering mathematics (STEM) sector. The covariance matrix of unobservable heterogeneity implies mild positive selection of natives in both sectors. In the counterfactual simulation, when restricting the number of foreign computer scientists to its pre-internet booming level, I nd a smaller crowding-out eect than previous literature.
Url: http://conference.iza.org/conference_files/DC_2015/ma_j22652.pdf
User Submitted?: No
Authors: Ma, Jie
Publisher: IZA
Data Collections: IPUMS USA, IPUMS CPS
Topics: Education, Labor Force and Occupational Structure, Migration and Immigration
Countries: