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US Permanent Residency, Job Mobility, and Earnings

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  • Xuening Wang

Abstract

One concern regarding US immigration policies is that skilled workers on temporary visas may be bound to their employers in “indentured servitude,” giving rise to monopsony power. I investigate this concern by estimating the effect of acquiring permanent residency on the job mobility and earnings of these workers. Using fixed effects models, I find an immediate upsurge in mobility upon permanent residency receipt, primarily driven by voluntary moving being depressed during the employer-sponsored immigration process. Job lock reduces the earnings of male workers by 4.7%, which translates to a 2% surplus for firms after extra hiring costs are subtracted.

Suggested Citation

  • Xuening Wang, 2021. "US Permanent Residency, Job Mobility, and Earnings," Journal of Labor Economics, University of Chicago Press, vol. 39(3), pages 639-671.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/709689
    DOI: 10.1086/709689
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    Cited by:

    1. Stephen G. Dimmock & Jiekun Huang & Scott J. Weisbenner, 2022. "Give Me Your Tired, Your Poor, Your High-Skilled Labor: H-1B Lottery Outcomes and Entrepreneurial Success," Management Science, INFORMS, vol. 68(9), pages 6950-6970, September.
    2. Arendt, Jacob Nielsen & Dustmann, Christian & Ku, Hyejin, 2023. "Permanent Residency and Refugee Immigrants' Skill Investment," IZA Discussion Papers 16313, Institute of Labor Economics (IZA).
    3. Redpath, Connor, 2022. "Spousal Visa Policy and Mixed-Citizenship Couples: Evidence from the End of the Defense Of Marriage Act," SocArXiv mzuwe, Center for Open Science.
    4. Arellano-Bover, Jaime & San, Shmuel, 2023. "The Role of Firms and Job Mobility in the Assimilation of Immigrants: Former Soviet Union Jews in Israel 1990–2019," IZA Discussion Papers 16389, Institute of Labor Economics (IZA).
    5. Ahrens, Achim & Beerli, Andreas & Hangartner, Dominik & Kurer, Selina & Siegenthaler, Michael, 2023. "The Labor Market Effects of Restricting Refugees' Employment Opportunities," IZA Discussion Papers 15901, Institute of Labor Economics (IZA).

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