High-Skill Immigration, Innovation, and Creative Destruction
Economists have identified product entry and exit as a primary channel through which innovation impacts economic growth. In this paper, we document how high-skill immigration affects product reallocation (entry and exit) at the firm level. Using data on H-1B Labor Condition Applications (LCAs) matched to retail scanner data on products and Compustat data on firm characteristics, we find that H-1B certification is associated with higher product reallocation and revenue growth. A ten percent increase in the share of H-1B workers is associated with a two percent increase in product reallocation rates – our measure of innovation. These results shed light on the economic consequences of innovation by high-skill immigrant to the United States.
Published Versions
High-Skill Immigration, Innovation, and Creative Destruction, Gaurav Khanna, Munseob Lee. in The Roles of Immigrants and Foreign Students in US Science, Innovation, and Entrepreneurship, Ganguli, Kahn, and MacGarvie. 2020
Related
Topics
Working Groups
Mentioned in the News
More from NBER
In addition to working papers, the NBER disseminates affiliates’ latest findings through a range of free periodicals — the NBER Reporter, the NBER Digest, the Bulletin on Retirement and Disability, the Bulletin on Health, and the Bulletin on Entrepreneurship — as well as online conference reports, video lectures, and interviews.
