Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/271796 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 10152
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We study how restrictive immigration policies and the unexpected loss of peers affect the performance of skilled migrants, exploiting the unexpected increased denials of H-1B visa extensions in the United States beginning in 2017. We find that employees who lost peers of the same ethnic background experience a substantial decrease in individual performance. To resolve the endogeneity surrounding visa denial decisions, we build an instrumental variable that exploits the fixed duration of the visas. Our mechanism tests suggest that ethnic ties boost individual performance through preferential channels of knowledge and information spillovers.
JEL: 
J24
J61
L25
Document Type: 
Working Paper
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