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Title: The Impact of H-1B Visa Holders on the U.S. Workforce
Citation Type: Miscellaneous
Publication Year: 2020
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Abstract: H-1B visa holders do not adversely affect U.S. workers, according to new research. On the contrary, the evidence points to the presence of H-1B visa holders being associated with lower unemployment rates and faster earnings growth among college graduates, including recent college graduates. Further, the results suggest that, if anything, being in a field with more H-1B visa holders makes it more likely that U.S.-born young college graduates work in a job closely related to their college major. The results here should give pause to policymakers considering imposing additional restrictions on the H-1B program. There is little reason to think doing so will help American workers. This study uses data from 2005 to 2018 to examine how the number of approved petitions to hire H-1B visa holders as a share of college graduates within each of 22 occupations affects the unemployment rate and earnings growth rate in those occupations. The study analyzes data from U.S. Citizenship and Immigration Services (USCIS) on approved H-1B petitions and American Community Survey (ACS) data on the U.S. workforce. The analysis finds: • An increase in the share of workers with an H-1B visa within an occupation, on average, reduces the unemployment rate in that occupation. The results indicate that a 1 percentage point increase in the share of workers with an H-1B visa in an occupation reduces the unemployment rate by about 0.2 percentage points. The findings suggest the presence of H-1B visa holders boosts employment among other workers in an occupation. The results provide no evidence that the H-1B program has an adverse impact on labor market opportunities for U.S. workers. • The results suggest the presence of more H-1B visa holders leads to faster earnings growth for U.S. workers. The magnitude of the estimates suggests that a 1 percentage point increase in the share of workers with an H-1B visa in an occupation boosts the earnings growth rate in that occupation by about 0.1 to 0.26 percentage points. A larger share of H-1B visa holders, therefore, may push up wages and wage growth for U.S. workers. While critics often allege that H-1B visas reduce wages or suppress wage growth, this finding of the opposite is consistent with research showing that H-1B visa holders earn at least as much as similar U.S. workers, if not more. • The results indicate H-1B visa holders do not adversely affect U.S.-born college graduates during the early years of their careers. Having more approved total or initial H-1B petitions, on average, reduces the unemployment rate within a major-occupation for recent graduates. The results provide no evidence that recent college graduates have worse labor market outcomes if there are more H-1B visa holders in jobs closely related to their college major.
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Authors: Zavodny, Madeline
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Data Collections: IPUMS USA
Topics: Labor Force and Occupational Structure, Migration and Immigration
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