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High-Skilled-Immigration-In-A-Global-Labor-Market.Pdf cover 11/19/10 1:37 PM Page 1 frontmatter 11/19/10 12:27 PM Page i High-Skilled Immigration in a Global Labor Market frontmatter 11/19/10 12:27 PM Page iii High-Skilled Immigration in a Global Labor Market Barry R. Chiswick, Editor The AEI Press Publisher for the American Enterprise Institute WASHINGTON, D.C. frontmatter 11/19/10 12:27 PM Page iv Distributed by arrangement with the Rowman & Littlefield Publishing Group, 4501 Forbes Boulevard, Suite 200, Lanham, Maryland 20706. To order, call toll free 1-800-462-6420 or 1-717-794-3800. For all other inquiries, please contact AEI Press, 1150 Seventeenth Street, N.W., Washington, D.C. 20036, or call 1-800-862-5801. Library of Congress Cataloging-in-Publication Data High-skilled immigration in a global labor market / Barry R. Chiswick, editor. p. cm. Includes bibliographical references and index. ISBN-13: 978-0-8447-4385-1 (cloth) ISBN-10: 0-8447-4385-2 (cloth) ISBN-13: 978-0-8447-4387-5 (ebook) ISBN-10: 0-8447-4387-9 (ebook) 1. Foreign workers. 2. Skilled labor. 3. Professional employees. 4. Labor market. 5. Emigration and immigration—Economic aspects. I. Chiswick, Barry R. HD6300.H54 2010 331.6'2—dc22 © 2011 by the American Enterprise Institute for Public Policy Research, Wash- ington, D.C. All rights reserved. No part of this publication may be used or repro- duced in any manner whatsoever without permission in writing from the American Enterprise Institute except in the case of brief quotations embodied in news articles, critical articles, or reviews. The views expressed in the publications of the American Enterprise Institute are those of the authors and do not neces- sarily reflect the views of the staff, advisory panels, officers, or trustees of AEI. Printed in the United States of America frontmatter 12/16/10 1:17 PM Page v Contents LIST OF ILLUSTRATIONS ix ACKNOWLEDGMENTS xix INTRODUCTION AND OVERVIEW OF THE CHAPTERS, Barry R. Chiswick 1 PART I: HISTORICAL PERSPECTIVE 13 1. A HISTORICAL PERSPECTIVE ON HIGH-SKILLED IMMIGRANTS TO THE UNITED STATES, 1820–1920, Joseph P. Ferrie 15 High-Skilled Immigrants: The Numbers, 1820–1920 16 The Process of Assimilation 25 The Impact of High-Skilled Immigrants 31 High-Skilled Immigrants and the Transformation of U.S. Industry 36 Conclusion 41 Notes 47 References 48 2. RIGHTS-BASED POLITICS, IMMIGRATION, AND THE BUSINESS CYCLE, 1890–2008, James F. Hollifield and Carole J. Wilson 50 Politics Matters 52 Immigration and the Rise of Rights-Based Politics 56 Rolling Back Rights to Control Immigration 65 A New Emphasis on High-Skilled Immigration 68 Immigration and Security Concerns 69 Immigration and the Business Cycle 72 Conclusion 76 References 78 v frontmatter 11/19/10 12:27 PM Page vi vi HIGH-SKILLED IMMIGRATION IN A GLOBAL LABOR MARKET PART II: FROM TEMPORARY TO PERMANENT STATUS 81 3. TRENDS IN FOREIGN-STUDENT ADMISSIONS TO THE UNITED STATES: POLICY AND COMPETITIVE EFFECTS, B. Lindsay Lowell and Pramod Khadka 83 International Students and Economic Cycles 86 The Cost of College 88 Student Policy and Visa Procedures 90 International Competition 93 Econometric Evaluation of Student Migration 95 Conclusion 101 Notes 103 References 105 PART III: THE ADJUSTMENT OF HIGH-SKILLED IMMIGRANTS 109 4. EDUCATIONAL MISMATCH: ARE HIGH-SKILLED IMMIGRANTS REALLY WORKING IN HIGH-SKILLED JOBS, AND WHAT PRICE DO THEY PAY IF THEY ARE NOT? Barry R. Chiswick and Paul W. Miller 111 Why Do Education Mismatches Occur? 114 Education Levels of the Native- and Foreign-Born Populations 117 Literature Review of the ORU Technique 119 Measurement of Mismatches and Data 122 Statistical Analyses 123 Conclusion 139 Appendix 4A: Definitions of Variables 144 Appendix 4B: Regression Analyses of Effects of Education on Earnings 147 Notes 151 References 154 5. PHYSICIAN MIGRATION TO THE UNITED STATES AND CANADA: CRITERIA FOR ADMISSION, Linda G. Lesky 155 Medical Education in the United States and Canada 155 The Application Process for International Medical Graduates 156 International Medical Graduates in “the Match” 159 Implications and Future Trends 160 References 163 frontmatter 11/19/10 12:27 PM Page vii CONTENTS vii 6. EARNINGS, OCCUPATIONS, AND SCHOOLING DECISIONS OF IMMIGRANTS WITH MEDICAL DEGREES: EVIDENCE FOR CANADA AND THE UNITED STATES, James Ted McDonald, Casey Warman, and Christopher Worswick 165 Relevant Policy Differences between Canada and the United States 168 The Data and Estimation Sample 170 Estimation Results 182 Conclusion 193 Notes 197 References 198 PART IV: HIGH-SKILLED IMMIGRANTS:IMPACT AND POLICY 199 7. HIGH-SKILLED IMMIGRATION: THE LINK TO PUBLIC EXPENDITURE AND PRIVATE INVESTMENTS, Volker Grossmann and David Stadelmann 201 Theoretical Considerations 204 Empirical Analysis 206 Conclusion 224 Notes 228 References 229 8. HIGH-SKILLED RUSSIAN IMMIGRANTS IN THE ISRAELI LABOR MARKET: ADJUSTMENT AND IMPACT, Sarit Cohen-Goldner and Yoram Weiss 231 Employment, Occupation, and Wages 233 Return Migration and Out-Migration 250 Macroeconomic Aspects of Immigration 254 Conclusion 258 Notes 260 References 262 9. HIGH-SKILLED IMMIGRATION POLICY IN EUROPE, Martin Kahanec and Klaus F. Zimmermann 264 European Migration and Immigration Policies in Historical Perspective 270 European Policy Challenges: Institute for the Study of Labor Expert Opinion Survey 271 Current Approaches to High-Skilled Immigration in Europe 283 Scandinavian Welfare States 286 frontmatter 11/19/10 12:27 PM Page viii viii HIGH-SKILLED IMMIGRATION IN A GLOBAL LABOR MARKET The Western European Core 290 Newly Emerged European Cores 298 New Member States 302 Policies Applied at the EU Level: The EU Blue Card 304 What Is Europe Doing to Attract High-Skilled Immigrants? 305 Conclusions and Policy Implications 306 Notes 309 References 313 APPENDIX: THE POLICY PANEL 315 INDEX 321 ABOUT THE AUTHORS 335 frontmatter 11/19/10 12:27 PM Page ix List of Illustrations FIGURES 1-1 Immigration to the United States of Adult Males Reporting an Occupation by Skill Level, 1820–1920 20 1-2 Immigration to the United States of Adult Males Reporting an Occupation by Skill Level, 1820–1920, Percentage of Total Immigration 21 1-3 Immigrants to the United States by Country of Origin, 1820–1920 23 1-4 Irish, German, Italian, and Russian Immigrants to the United States by Skill Level 24 1-5 High-Skilled Immigration to the United States and Business-Cycle Peaks, 1820–1920 26 1-6 Medium-Skilled Immigration to the United States and Business-Cycle Peaks, 1820–1920 27 1-7 Low-Skilled Immigration to the United States and Business-Cycle Peaks, 1820–1920 28 1-8 Estimated Probability of an Immigrant Attaining an Occupation Other Than Unskilled by Years since Arrival, Occupation at Arrival, and Source Country 29 1-9 Percentage of White, Adult Males in High- and Medium- Skilled Occupations in the United States, 1850–80 and 1900–20, U.S. Natives and Immigrants 33 1-10 Percentage of White, Adult Males in High- and Medium- Skilled Occupations in the United States, 1850–80 and 1900–20, by Origin 34 ix frontmatter 11/19/10 12:27 PM Page x x HIGH-SKILLED IMMIGRATION IN A GLOBAL LABOR MARKET 1-11 Percentage of Immigration-Induced Human-Capital Transfer Attributed to Each Skill Level upon Arrival in the United States 35 1-12 Change in per Worker Output 1870–80 versus Change in Share of Workers in Craft Occupations 1860–70, U.S.-Born Workers, by U.S. County 38 1-13 Change in per Worker Output 1870–80 versus Change in Share of Workers in Craft Occupations 1860–70, Foreign-Born Workers, by U.S. County 39 1-14 Change in per Worker Capital 1870–80 versus Change in Share of Workers in Craft Occupations 1860–70, U.S.-Born Workers, by U.S. County 40 1-15 Change in per Worker Capital 1870–80 versus Change in Share of Workers in Craft Occupations 1860–70, Foreign-Born Workers, by U.S. County 41 1-16 Change in per Worker Horsepower 1920–30 versus Change in Share of Workers in Craft Occupations 1910–20, U.S.-Born Workers 42 1-17 Change in per Worker Horsepower 1920–30 versus Change in Share of Workers in Craft Occupations 1910–20, Foreign-Born Workers 43 2-1 Immigration to the United States, 1890–2008 55 2-2 Foreign-Born Share of Total U.S. Population, 1850–2005 62 2-3 Annual Number of Immigrants to the United States by Legal Status, 1990–2004 68 2-4 Number of H1-B Visas Issued for Immigrants to the United States, 1992–2009 70 2-5 Actual Levels of Immigration versus the OLS Model Predictions 75 3-1 Actual and Linear Number of U.S. Foreign-Student Visas and Enrollments in the United States, 1970–2007 87 3-2 Change in Average Annual Tuition and Room and Board at Public and Private Four-Year Institutions in the United States, 1986–2006 90 frontmatter 12/16/10 1:14 PM Page xi LIST OF ILLUSTRATIONS xi 3-3 Foreign Students in English-Speaking Countries, 1997–2006 94 4-1 Total Legal Permanent-Resident Visas and Employment- Preference Visas Issued in the United States, Fiscal Years 1987–2007 112 4-2 Distribution of Educational Attainment Levels of Adult Males, by Nativity, 1999 118 4-3 Results from Flexible Specification of ORU Model in Equation (2) for Foreign Born, Based on Realized-Matches Procedure 135 4-4 Results from Flexible Specification of ORU Model in Equation (2) for Native Born, Based on Realized-Matches Procedure 136 4-5 Partial Effects of Education on Earnings by Duration of U.S. Residency, Skilled Foreign-Born Adult Males 139 4-6 Partial Effects of Education on Earnings by Duration of U.S.
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