Offshoring Response to High-Skilled Immigration PDF Download

Author: Ghose
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Author: Britta Glennon
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Highly-skilled workers are not only a crucial and relatively scarce inputs into firms' productive and innovative processes, but are also a critical resource determining competitive advantage. An increasingly high proportion of these workers in the US were born abroad and permitted to work on skilled worker visas. How do multinational firms respond when artificial constraints, namely policies restricting skilled immigration, are placed on their ability to hire scarce human capital? This paper combines visa microdata and comprehensive data on US multinational firm activity to demonstrate that firms respond to restrictions on H-1B immigration by increasing foreign affiliate employment at the intensive and extensive margins, particularly in China, India, and Canada. The most impacted jobs were R&D-intensive ones, but there is some evidence that non-R&D employment was also affected. The paper highlights a means by which firms can circumvent constraining policies and mitigate country-level risk, but it also suggests that, for the average MNC, this means is imperfect; for every visa rejection, they hire 0.4 employees abroad. The most globalized MNCs are the most likely to respond to these restrictions by offshoring, highlighting that firm capabilities--in the form of prior internationalization--shape the decision and ability to offshore in response to skilled immigration restrictions; indeed, these firms hire 0.9 employees abroad for every visa rejection. More broadly, the paper provides evidence of a push factor for internationalizing knowledge activity: artificial constraints on resources result in firms circumventing restrictive policies in ways that may not be anticipated by policy makers.

Author: National Academies of Sciences, Engineering, and Medicine
Publisher: National Academies Press
ISBN: 0309337828
Category : Technology & Engineering
Languages : en
Pages : 155

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The market for high-skilled workers is becoming increasingly global, as are the markets for knowledge and ideas. While high-skilled immigrants in the United States represent a much smaller proportion of the workforce than they do in countries such as Australia, Canada, and the United Kingdom, these immigrants have an important role in spurring innovation and economic growth in all countries and filling shortages in the domestic labor supply. This report summarizes the proceedings of a Fall 2014 workshop that focused on how immigration policy can be used to attract and retain foreign talent. Participants compared policies on encouraging migration and retention of skilled workers, attracting qualified foreign students and retaining them post-graduation, and input by states or provinces in immigration policies to add flexibility in countries with regional employment differences, among other topics. They also discussed how immigration policies have changed over time in response to undesired labor market outcomes and whether there was sufficient data to measure those outcomes.

Author: William R. Kerr
Publisher: Stanford University Press
ISBN: 1503607364
Category : Business & Economics
Languages : en
Pages : 250

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The global race for talent is on, with countries and businesses competing for the best and brightest. Talented individuals migrate much more frequently than the general population, and the United States has received exceptional inflows of human capital. This foreign talent has transformed U.S. science and engineering, reshaped the economy, and influenced society at large. But America is bogged down in thorny debates on immigration policy, and the world around the United States is rapidly catching up, especially China and India. The future is quite uncertain, and the global talent puzzle deserves close examination. To do this, William R. Kerr uniquely combines insights and lessons from business practice, government policy, and individual decision making. Examining popular ideas that have taken hold and synthesizing rigorous research across fields such as entrepreneurship and innovation, regional advantage, and economic policy, Kerr gives voice to data and ideas that should drive the next wave of policy and business practice. The Gift of Global Talent deftly transports readers from joyous celebrations at the Nobel Prize ceremony to angry airport protests against the Trump administration's travel ban. It explores why talented migration drives the knowledge economy, describes how universities and firms govern skilled admissions, explains the controversies of the H-1B visa used by firms like Google and Apple, and discusses the economic inequalities and superstar firms that global talent flows produce. The United States has been the steward of a global gift, and this book explains the huge leadership decision it now faces and how it can become even more competitive for attracting tomorrow's talent. Please visit www.hbs.edu/managing-the-future-of-work/research/Pages/default.aspx to learn more about the book.

Author: World Intellectual Property Organization
Publisher: WIPO
ISBN:
Category : Law
Languages : en
Pages : 26

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High-skilled immigrants are a very important component of U.S. innovation and entrepreneurship. Studies regarding the impact of immigrants on natives tend to find limited consequences in the short-run, while the results in the long-run are more varied and much less certain. Immigrants in the United States aid business and technology exchanges with their home countries, but the overall effect that the migration has on the home country remains unclear. Little is known about return migration of workers engaged in innovation and entrepreneurship, except that it is rapidly growing in importance.

Author: Federico Mandelman
Publisher:
ISBN:
Category :
Languages : en
Pages : 31

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During the last three decades, jobs in the middle of the skill distribution disappeared, and employment expanded for high- and low-skill occupations. Real wages did not follow the same pattern. Although earnings for the high-skill occupations increased robustly, wages for both low- and middle-skill workers remained subdued. We attribute this outcome to the rise in offshoring and low-skilled immigration, and we develop a three-country stochastic growth model to rationalize this outcome. In the model, the increase in offshoring negatively affects the middle-skill occupations but benefits the high-skill ones, which in turn boosts aggregate productivity. As the income of high-skill occupations rises, so does the demand for services provided by low-skill workers. However, low-skill wages remain depressed as a result of the surge in unskilled immigration. Native workers react to immigration by upgrading the skill content of their labor tasks as they invest in training.

Author: National Academies of Sciences, Engineering, and Medicine
Publisher: National Academies Press
ISBN: 0309444454
Category : Social Science
Languages : en
Pages : 643

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The Economic and Fiscal Consequences of Immigration finds that the long-term impact of immigration on the wages and employment of native-born workers overall is very small, and that any negative impacts are most likely to be found for prior immigrants or native-born high school dropouts. First-generation immigrants are more costly to governments than are the native-born, but the second generation are among the strongest fiscal and economic contributors in the U.S. This report concludes that immigration has an overall positive impact on long-run economic growth in the U.S. More than 40 million people living in the United States were born in other countries, and almost an equal number have at least one foreign-born parent. Together, the first generation (foreign-born) and second generation (children of the foreign-born) comprise almost one in four Americans. It comes as little surprise, then, that many U.S. residents view immigration as a major policy issue facing the nation. Not only does immigration affect the environment in which everyone lives, learns, and works, but it also interacts with nearly every policy area of concern, from jobs and the economy, education, and health care, to federal, state, and local government budgets. The changing patterns of immigration and the evolving consequences for American society, institutions, and the economy continue to fuel public policy debate that plays out at the national, state, and local levels. The Economic and Fiscal Consequences of Immigration assesses the impact of dynamic immigration processes on economic and fiscal outcomes for the United States, a major destination of world population movements. This report will be a fundamental resource for policy makers and law makers at the federal, state, and local levels but extends to the general public, nongovernmental organizations, the business community, educational institutions, and the research community.

Author: Jacob Funk Kirkegaard
Publisher: Peterson Institute
ISBN: 0881325678
Category : Business & Economics
Languages : en
Pages : 145

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Kirkegaard explores the increasingly dysfunctional state of present US high-skilled immigration laws and recommends a coherent set of immediate reforms, which should aim to facilitate continuously high and increasingly economically necessary levels of high-skilled immigration to the United States. In recent decades American skill levels have stagnated and struggled to make the global top 10. As baby boomers retire, the United States risks losing these skills altogether. In response, the United States should address high-skilled immigration in its broader foreign economic policies in an attempt to remain a global leader in the face of accelerating global economic integration.

Author: Gianmarco I. P. Ottaviano
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 0

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Abstract: How many "American jobs" have U.S.-born workers lost due to immigration and offshoring? Or, alternatively, is it possible that immigration and offshoring, by promoting cost-savings and enhanced efficiency in firms, have spurred the creation of jobs for U.S. natives? We consider a multi-sector version of the Grossman and Rossi-Hansberg (2008) model with a continuum of tasks in each sector and we augment it to include immigrants with heterogeneous productivity in tasks. We use this model to jointly analyze the impact of a reduction in the costs of offshoring and of the costs of immigrating to the U.S. The model predicts that while cheaper offshoring reduces the share of natives among less skilled workers, cheaper immigration does not, but rather reduces the share of offshored jobs instead. Moreover, since both phenomena have a positive "cost-savings" effect they may leave unaffected, or even increase, total native employment of less skilled workers. Our model also predicts that offshoring will push natives toward jobs that are more intensive in communication-interactive skills and away from those that are manual and routine intensive. We test the predictions of the model on data for 58 U.S. manufacturing industries over the period 2000-2007 and find evidence in favor of a positive productivity effect such that immigration has a positive net effect on native employment while offshoring has no effect on it. We also find some evidence that offshoring has pushed natives toward more communication-intensive tasks while it has pushed immigrants away from them

Author: Barry R. Chiswick
Publisher: Government Institutes
ISBN: 0844743879
Category : Political Science
Languages : en
Pages : 367

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Recent U.S. immigration reform proposals have focused almost exclusively on regulating the population of low-skilled foreign workers. High-Skilled Immigration in a Global Labor Market contends that policymakers should focus more on attracting immigrants with exclusive skill sets-professional, technical, and managerial (PTM) workers. PTM workers positively impact the economy by expanding production capability, increasing the growth rate of total factor productivity, and enhancing international competitiveness. Barry R. Chiswick and his coauthors examine the policies established by other OECD countries (such as Australia, Canada, and New Zealand) to attract foreign PTM workers and explore how U.S. immigration policy could be altered to maximize the economic benefits of high-skilled immigration.