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Building a Better H-1B Program

Author

Listed:
  • Chad Sparber

    (Colgate University)

Abstract

The H-1B program allows highly-educated foreign-born labor to temporarily work in the United States. Quotas restrict the number of labor force entrants, however. 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 six year period. This estimate grows when H-1B demand rises.

Suggested Citation

  • Chad Sparber, 2015. "Building a Better H-1B Program," RF Berlin - CReAM Discussion Paper Series 1513, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    • Handle: RePEc:crm:wpaper:1513
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    File URL: https://www.cream-migration.org/publ_uploads/CDP_13_15.pdf
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    More about this item

    Keywords

    Skilled Workers; H-1B Work Permit; Immigration;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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