US universities attract each year hundreds of thousands of international students. Some of them become high skilled labor supply in the US, at least in the short-run. In this paper, we estimate the short-run transition rates of international students graduating from American universities into the local labor market. To identify the effect of one more international student on US labor supply, we implement an instrumental variable estimation using innovations in the level of tuition fees charged to international students by public US universities, in the year they likely started their studies. We find that attracting an additional international student in a US university increases the local labor supply by about 0.23 employees for master graduates and about 0.14 for bachelor degrees. These averages, that we call "transition rates" into the US labor market, conceal large differences between STEM students and non-STEM students. We find positive transition rates only for STEM students, both for bachelor and master graduates, and larger in the aftermath of the 2008 Optional Practical Training (OPT) reform that extended Optional Practical Training for those students.
NBER Working Paper (2022) Submitted
Media: The Chronicle of Higher Education, NBER Digest, Forbes
In this paper, I investigate how cultural differences affect the labor-market performance of immigrant workers in Germany. I document a negative relationship between hourly wages and the cultural distance between immigrants’ countries of origin and Germany. This result is robust across the three main indicators used in the gravity literature: linguistic, religious, and genetic distances. This cultural wage penalty disappears after five to ten years spent in Germany. Controlling for language proficiency as well as for selective in- and out-migration, these results highlight the cultural integration of immigrant workers. I finally provide evidence suggesting that lower wage progression may be explained by fewer job-to-job transitions.
DEM Discussion paper (2021) Revise and Resubmit, Labour Economics
This paper shows that, on average, U.S. employers are more likely to seek foreign skilled workers for positions where finding domestic workers takes time. It uses a new dataset matching online job posting duration to administrative data on Labor Condition Applications (LCAs) submitted as the first step in applying for H-1B temporary skilled worker visas. It investigates the mechanisms by exploring the heterogeneity of the results across firms and labor markets. It shows that this relationship is not driven by firms manipulating their job postings’ duration to demonstrate their good faith efforts in their search for domestic workers. On the contrary, evidence suggest that the results are due to the insufficient domestic labor supply in tight occupations.
DEM Discussion paper (2021) Submitted
This paper investigates the role of labor market tightness in the labor demand for high-skilled foreign workers in the US. In a first part, I show that employers used to submit LCAs as a first step to sponsor H-1B visas, search to recruit more educated and more experienced candidates than other employers recruiting on the same local labor market. I also show that they offer higher wages than competing recruiters. In a second part, I use a new IV strategy and document a positive causal impact of recruitment competition on the number of LCAs submitted by employer. The effect holds for most employers but vanishes when including the largest outsourcing companies in the analysis. These results are consistent with the notion that labor market tightness is another explanation to the absence of crowding-out effect from high-skilled foreign workers against natives with similar skills.
Draft coming soon
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