Skilled Immigration Frictions as a Barrier for Young Firms
Abstract: This paper studies the impact of skilled immigration policy frictions in the United States on technology-intensive firms by age cohorts. We use firm-level data and a general equilibrium model with endogenous firm entry and exit. The empirical results show that skilled immigration policy frictions directly influence young firm dynamics in technology-intensive sectors by affecting firm survival. Our general equilibrium model incorporates skilled foreign labor and immigration policy frictions that mimic the H-1B policy and matches the age distribution of firms in high-technology sectors, showing also that increased entry of younger firms leads to a greater exit of older firms.
Status: Published in 2024
File(s): File format is application/pdf https://www.atlantafed.org/-/media/documents/research/publications/wp/2024/02/05/02--skilled-immigration-frictions-as-barrier-for-young-firms.pdf
Provider: Federal Reserve Bank of Atlanta
Part of Series: FRB Atlanta Working Paper
Publication Date: 2024-02-05