US-Born Citizens Gained From H1B Visas, Says Study
The study adds to the debate over H-1B immigration and suggests that skilled foreign workers can contribute to the wider US workforce rather than simply competing with American workers for a fixed number of jobs.
Hyderabad: While many politicians and individuals in the United States argue that H-1B positions offered to international workers reduce opportunities and incomes for native US citizens, a recent study by researchers at Stanford University revealed that H-1B immigration raised long-term incomes for US-born workers and immigrants already in the US.
The study, ‘Long-Run Effects of H-1B Immigration on the US Economy’, found that the benefits of the programme extended beyond the foreign workers who receive the visas. The researchers examined the expansion of the H-1B programme between 1999 and 2003 and found that industries with greater exposure to H-1B workers subsequently recorded higher incomes among existing workers.
The gains were particularly significant among native workers in non-STEM occupations. According to the study, a one percentage point increase in H-1B exposure was associated with an increase of about 1.2 per cent in the long-term incomes of native college graduates working in non-STEM occupations.
The researchers — Stanford department of economics professor Ran Abramitzky, Princeton University economics professor Leah Boustan, Stanford Immigration Policy Lab postdoctoral fellow Ahmet Gulek and Stanford professor of political science Jens Hainmueller — found that workers in areas such as management, administration and other complementary roles could benefit when specialised H-1B workers increased productivity in an industry.
The study also found that the benefits were not limited to US-born workers. Immigrants who were living in the US before the H-1B expansion also experienced income gains. The researchers noted that the arrival of new skilled workers did not simply replace existing immigrants or American workers but could instead make other workers more productive.
At the same time, the researchers found that the impact was not identical for everyone. Native STEM workers, whose skills are more closely related to those of H-1B workers, saw little to no net benefit and, in some estimates, a small negative effect. The researchers attributed this to competition among workers with similar skills, which was only partly offset by the wider productivity gains created by H-1B workers.
Another significant finding was that the economic benefits spread beyond industries directly employing H-1B workers. Industries that purchased goods and services from H-1B-exposed industries also recorded higher incomes. The researchers said this pattern was consistent with H-1B immigration acting as a productivity shock that spreads through supply chains.
However, the study found no clear increase in patenting in industries directly exposed to H-1B workers. The researchers therefore argued that the main benefit may come not from producing more patents but from improving the efficiency with which existing specialised tasks are performed.
The study adds to the debate over H-1B immigration and suggests that skilled foreign workers can contribute to the wider US workforce rather than simply competing with American workers for a fixed number of jobs.
