High-skilled immigration and native task specialization in U.S. cities

This study examines the effect of high-skilled immigration on the occupational structure of native-born workers in U.S. cities. Results indicate that increases in foreign college workers in STEM occupations, where they hold a comparative advantage over native-born workers, increase the specialization of college natives in social-intensive tasks. Consistent with the productivity effect of task specialization, I find no evidence of displacement effects but do find evidence of positive wage effects of foreign STEM flows on college natives, particularly for those in high-social occupations. Identification strategy relies on an instrumental variable approach standard in the immigration literature.
Source: Regional Science and Urban Economics - Category: Science Source Type: research