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OPT Policy Changes and Foreign Born STEM Talent in the U.S

Author

Listed:
  • Amuedo-Dorantes Catalina

    (San Diego State University)

  • Delia Furtado

    (University of Connecticut)

  • Huanan Xu

    (Indiana University South Bend)

Abstract

Academia and the public media have emphasized the link between STEM majors and innovation as well as the need for STEM graduates in the U.S. economy. Given the proclivity of international students to major in STEM fields, immigration policy may be used to attract and retain high-skilled STEM workers in the United States. We examine the impacts of a 2008 policy extending the Optional Practical Training (OPT) period for STEM graduates. Using data from the National Survey of College Graduates, we find that, relative to other foreign-born U.S. college graduates, the foreign-born who first came on student visas were 18 percent more likely to have their degrees in STEM fields if they enrolled in their major after the OPT policy change. While part of this increase is likely due to the rather mechanical drop in return migration among STEM graduates following the OPT change, the policy also appears to have induced some international students, who may have otherwise chosen a different field, to major in STEM.

Suggested Citation

  • Amuedo-Dorantes Catalina & Delia Furtado & Huanan Xu, 2019. "OPT Policy Changes and Foreign Born STEM Talent in the U.S," RF Berlin - CReAM Discussion Paper Series 1906, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    • Handle: RePEc:crm:wpaper:1906
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    References listed on IDEAS

    as
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    2. Catalina Amuedo-Dorantes & Delia Furtado, 2019. "Settling for Academia?: H-1B Visas and the Career Choices of International Students in the United States," Journal of Human Resources, University of Wisconsin Press, vol. 54(2), pages 401-429.
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    Cited by:

    1. John Bound & Breno Braga & Gaurav Khanna & Sarah Turner, 2021. "The Globalization of Postsecondary Education: The Role of International Students in the US Higher Education System," Journal of Economic Perspectives, American Economic Association, vol. 35(1), pages 163-184, Winter.
    2. Arpita Patnaik & Matthew J. Wiswall & Basit Zafar, 2020. "College Majors," NBER Working Papers 27645, National Bureau of Economic Research, Inc.
    3. Catalina Amuedo‐Dorantes & Kevin Shih & Huanan Xu, 2023. "The implications of optional practical training reforms on international student enrollments and quality," Economic Inquiry, Western Economic Association International, vol. 61(2), pages 253-281, April.
    4. Prathamesh Muzumdar & George Kurian & Ganga Prasad Basyal & Apoorva Muley, 2023. "Econometrics Modelling Approach to Examine the Effect of STEM Policy Changes on Asian Students Enrollment Decision in USA," Papers 2308.08972, arXiv.org.
    5. Amuedo-Dorantes, Catalina & Shih, Kevin Y. & Xu, Huanan, 2020. "International Student Enrollments and Selectivity: Evidence from the Optional Practical Training Program," IZA Discussion Papers 13730, Institute of Labor Economics (IZA).
    6. Wei Yang Tham & Joseph Staudt & Elisabeth Ruth Perlman & Stephanie D. Cheng, 2024. "Scientific Talent Leaks Out of Funding Gaps," Papers 2402.07235, arXiv.org.
    7. Murat Demirci, 2021. "Rising Political Populism and Outmigration of Youth as International Students," Koç University-TUSIAD Economic Research Forum Working Papers 2123, Koc University-TUSIAD Economic Research Forum.
    8. Demirci, Murat, 2023. "Youth responses to political populism: Education abroad as a step toward emigration," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 653-673.

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    More about this item

    Keywords

    Optional Practical Training; H-1B visas; foreign-born workers; United States;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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