TY  - JOUR
AU  - Waugh, Michael E
TI  - Firm Dynamics and Immigration: The Case of High-Skilled Immigration
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 23387
PY  - 2017
Y2  - May 2017
DO  - 10.3386/w23387
UR  - http://www.nber.org/papers/w23387
L1  - http://www.nber.org/papers/w23387.pdf
N1  - Author contact info:
Michael E. Waugh
Stern School of Business
New York University
44 West Fourth Street, Suite 7-160
New York, NY 10012
Tel: 212/998-0288
E-Mail: mwaugh@stern.nyu.edu
M1  - published as Michael E. Waugh. "Firm Dynamics and Immigration: The Case of High-Skilled Immigration," in Gordon H. Hanson, William R. Kerr, and Sarah Turner, editors, "High-Skilled Migration to the United States and Its Economic Consequences" University of Chicago Press (2018)

M3  - presented at "High Skill Immigration in the Global Economy", July 10-11, 2016
AB  - This paper shows how the dynamics of the firm yield new insights into the short- and long-run economic outcomes from changes in immigration policy. I quantitatively illustrate these insights by evaluating two policies: an expansion of and the elimination of the H-1B visa program for skilled labor. A change in policy changes firms’ entry and exit decisions as they dynamically respond to changes in market size. The dynamic response of firms amplifies changes in relative wages as labor demand shifts with the distribution of firms. Firms’ responses also lead to the rapid accrual of aggregate gains/losses in output and consumption. The welfare implications of policy changes depend critically on who bears the burden of creating new firms.
ER  -