How Do Restrictions on High-Skilled Immigration Affect Offshoring? Evidence from the H-1B Program

Glennon, Britta

doi:10.2139/ssrn.3547655

Cited by 13 publications

(14 citation statements)

References 54 publications

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“…Unlike with cap-subject firms, we see no discernible change in new H-1B employment concentration. 9 Figure 3 provides a different look at the same phenomenon. The left panel illustrates that the share of new H-1B issuances allocated to employees of firms hiring five or fewer total H-1B workers was above 60% in FYs 2002 and 2003 for cap-subject firms.…”

Section: Stylized Facts About the H-1b Programmentioning

confidence: 99%

“…After documenting similar trends, we build a theory that illustrates that this behavior is indeed a result of H-1B policy design. Second, Glennon (2020) finds that firms respond to H-1B restrictions by moving production to foreign affiliates. Our theory instead models domestic outsourcing behavior such that firms specializing in hiring foreign workers then send their employees to third-party worksites within the country.…”

Section: Introductionmentioning

confidence: 99%

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Buying Lottery Tickets for Foreign Workers: Search Cost Externalities Induced by H-1b Policy

Sharma

Sparber

2020

SSRN Journal

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Section: Stylized Facts About the H-1b Programmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Buying Lottery Tickets for Foreign Workers: Search Cost Externalities Induced by H-1b Policy

Sharma

Sparber

2020

SSRN Journal

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“…Since the 1990s, however, the US's labor market has become more and more closed to immigration. Caps on high-skilled visas, like the H-1B visa program, have grown ever more restrictive, and preliminary evidence from Glennon (2018) shows that these restrictive high-skilled immigration caps drove U.S. MNCs to shift some of their R&D to the places from which they had been recruiting immigrant engineers in an effort to address these constraints. Relatively liberal trade and FDI policies have allowed MNCs to address their human resource constraints by sourcing from abroad, but an open immigration regime for highly skilled workers would further ease this constraint.…”

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

The IT Revolution and the Globalization of R&D

Branstetter¹,

Glennon²,

Jensen³

2018

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We gratefully acknowledge financial support from the National Science Foundation through two grants: 1360165 and 1360170. The statistical analysis of firm-level data on U.S. multinational companies was conducted at the Bureau of Economic Analysis (BEA), United States Department of Commerce under arrangements that maintain legal confidentiality requirements. The views expressed do not reflect official positions of the U.S. Department of Commerce or NSF. We thank Bill Zeile, Jim Fetzer, and Ray Mataloni for helpful discussions on the BEA data. We thank Josh Lerner, Scott Stern, and Kyle Meyers for valuable comments All errors and omissions remain our own responsibility. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w24707.ack NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

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“…A closely related strand of literature has used a mostly reduced-form approach to establish a link between immigration and trade (Gould, 1994;Hiller, 2013), immigration and FDI activity (Burchardi et al, 2019;Cuadros et al, 2019;Glennon, 2018;Javorcik et al, 2011;Wang, 2014;Yeaple, 2018), and the interrelations between migration, trade, and FDI (Aubry et al, 2018). I contribute to this literature by providing new facts on these links as well as building and estimating a quantitative model that allows me to properly quantify the aggregate implications of immigration for MNEs production and for welfare.…”

Section: Introductionmentioning

confidence: 99%

High-Skill Migration, Multinational Companies, and the Location of Economic Activity

Morales¹

2019

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This paper examines the relationship between high-skill immigration and multinational activity. I assemble a novel firm-level dataset on high-skill visa applications and show that there is a large home-bias effect. Foreign multinational enterprises (MNEs) in the US tend to hire more migrant workers from their home countries compared to US firms. To quantify the general equilibrium implications for production and welfare, I build and estimate a quantitative model that includes trade, MNE production, and the migration decisions of high-skill workers. I use an instrumental variables approach to show that the relationship between immigration and MNEs proposed by the model holds in the data. The model is then used to run two counterfactual exercises. The first, evaluates the implications of a more restrictive immigration policy in the US. I find that MNEs play a significant role in how immigration affects the location of production and welfare. In the second counterfactual exercise, I increase the barriers to MNE production to calculate the welfare gains generated by MNEs. I show that a model not incorporating migration would overestimate the MNE welfare gains for high-skill workers by 35% and underestimate welfare gains for low-skill workers by 8%.

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How Do Restrictions on High-Skilled Immigration Affect Offshoring? Evidence from the H-1B Program

Cited by 13 publications

References 54 publications

Buying Lottery Tickets for Foreign Workers: Search Cost Externalities Induced by H-1b Policy

Buying Lottery Tickets for Foreign Workers: Search Cost Externalities Induced by H-1b Policy

The IT Revolution and the Globalization of R&D

High-Skill Migration, Multinational Companies, and the Location of Economic Activity

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