> Translating these coefficients into the number of jobs offshored, I find that about 0.3 foreign affiliate jobs were created for every unfilled H-1B position.
> …
> I utilize two identification strategies, the first of which exploits the 2004 drop in the H-1B visa cap, while the second exploits variation in firm-level excess demand from the H-1B visa lotteries in high demand years. Both strategies yield the same result: that foreign affiliate employment increased as a direct response to increasingly stringent restrictions on H-1B visas. This effect is driven on the extensive and intensive margins; firms were more likely to open foreign affiliates in new countriesin response, and employment increased at existing foreign affiliates. The effect is strongest among R&D-intensive firms in industries where services could more easily be offshored. The effect was somewhat geographically concentrated: foreign affiliate employment increased both in countries like India and China with large quantities of high-skilled human capital and in countries like Canada with more relaxed high-skilled immigration policies and closer geographic proximity.
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[ 3.0 ms ] story [ 15.8 ms ] thread2 excerpts from that version:
> Translating these coefficients into the number of jobs offshored, I find that about 0.3 foreign affiliate jobs were created for every unfilled H-1B position.
> …
> I utilize two identification strategies, the first of which exploits the 2004 drop in the H-1B visa cap, while the second exploits variation in firm-level excess demand from the H-1B visa lotteries in high demand years. Both strategies yield the same result: that foreign affiliate employment increased as a direct response to increasingly stringent restrictions on H-1B visas. This effect is driven on the extensive and intensive margins; firms were more likely to open foreign affiliates in new countriesin response, and employment increased at existing foreign affiliates. The effect is strongest among R&D-intensive firms in industries where services could more easily be offshored. The effect was somewhat geographically concentrated: foreign affiliate employment increased both in countries like India and China with large quantities of high-skilled human capital and in countries like Canada with more relaxed high-skilled immigration policies and closer geographic proximity.