The Effect of Low-Skill Immigration Restrictions on US Firms and Workers: Evidence from a Randomized Lottery

Arbeitspapier

The U.S. limits work visas for low-skill jobs outside of agriculture, with a binding quota that firms access via a randomized lottery. We evaluate the marginal impact of the quota on firms entering the 2021 H-2B visa lottery using a novel survey and pre-analysis plan. Firms exogenously authorized to employ more immigrants significantly increase production (elasticity +0.16) with no decrease or an increase in U.S. employment (elasticity +0.10, statistically imprecise) across several pre-registered subsamples. The results imply very low substitutability of native for foreign labor in the policy-relevant occupations. Forensic analysis suggests similarly low substitutability of black-market labor.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 15667

Classification and Topics

• Classification: Wirtschaft ; International Migration ; Geographic Labor Mobility; Immigrant Workers ; Firm Behavior: Empirical Analysis
• Subject: immigration ; immigrant ; foreign ; labor ; mobility ; skill ; manual ; high school ; college ; firms ; elasticity ; substitution ; productivity ; rural ; urban

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Clemens, Michael A. ; Lewis, Ethan Gatewood
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/267404
• Last update: 10.03.2025, 11:44 AM CET