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Choosing Skilled Foreign†Born Workers: Evaluating Alternative Methods for Allocating H†1B Work Permits

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  • Chad Sparber

Abstract

The H†1B program allows highly educated foreign†born labor to temporarily work in the United States. Quotas restrict the number of H†1B recipients. In many years, all available work permits were allocated by random lottery. This paper argues that an alternative distribution method based upon ability would increase output, output per worker, and wages paid to less†educated workers. Baseline estimates suggest that a change in allocation policy could result in a $26.5 billion gain for the economy over a 6†year period. This estimate grows when H†1B demand rises.

Suggested Citation

  • Chad Sparber, 2018. "Choosing Skilled Foreign†Born Workers: Evaluating Alternative Methods for Allocating H†1B Work Permits," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 57(1), pages 3-34, January.
    • Handle: RePEc:bla:indres:v:57:y:2018:i:1:p:3-34
    DOI: 10.1111/irel.12203
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    Cited by:

    1. Patrick S. Turner, 2022. "High‐Skilled Immigration and the Labor Market: Evidence from the H‐1B Visa Program," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(1), pages 92-130, January.
    2. Sharma, Rishi R. & Sparber, Chad, 2024. "Buying lottery tickets for foreign workers: Lost quota rents induced by H-1B policy," Journal of International Economics, Elsevier, vol. 150(C).
    3. Sharma, Rishi & Sparber, Chad, 2020. "Buying Lottery Tickets for Foreign Workers: Search Cost Externalities Induced by H-1B Policy," IZA Discussion Papers 13892, Institute of Labor Economics (IZA).

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