STEM Workers, H-1B Visas, and Productivity in US Cities | Zendy

Giovanni Peri | Zendy; Kevin Shih | Zendy; Chad Sparber | Zendy

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STEM Workers, H-1B Visas, and Productivity in US Cities

Author(s) -

Giovanni Peri,

Kevin Shih,

Chad Sparber

Publication year - 2015

Publication title -

journal of labor economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 8.184

H-Index - 109

eISSN - 1537-5307

pISSN - 0734-306X

DOI - 10.1086/679061

Subject(s) - productivity , demographic economics , distribution (mathematics) , labour economics , foreign born , wage , wage growth , total factor productivity , economics , economic growth , immigration , geography , mathematical analysis , mathematics , archaeology

Science, technology, engineering, and mathematics (STEM) workers are fundamental inputs for innovation, the main driver of productivity growth. We identify the long-run effect of STEM employment growth on outcomes for native workers across 219 US cities from 1990 to 2010. We use the 1980 distribution of foreign-born STEM workers and variation in the H-1B visa program to identify supply-driven STEM increases across cities. Increases in STEM workers are associated with significant wage gains for college-educated natives. Gains for non-college-educated natives are smaller but still significant. Our results imply that foreign STEM increased total factor productivity growth in US cities.

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