The Economic Impact of Skilled Migration for USA 2024

1. The Economic Impact of Skilled Migration: A Conversation with Harvard Business School's William R. Kerr In a recent discussion with Srijana Mitra Das, Harvard Business School’s D’Arbeloff Professor of Business Administration, William R. Kerr sheds light on the crucial role skilled immigrants play in the innovation and entrepreneurship landscape of the United States. Kerr’s research delves into the economic gains the U.S. has enjoyed from talent immigrants and addresses the rising backlash against immigration, particularly during election years. Additionally, he provides insights into the gender dimensions of skilled migration and proposes improvements to the existing H-1B visa system. The Core of Research: William Kerr’s work revolves around the intersection of innovation, entrepreneurship, and their impact on economic growth. He explores the policy environments that shape these forces and emphasizes the link between immigration and economic dynamism. Kerr’s research highlights the evolving landscape, where approximately 25% of inventors and entrepreneurs in the U.S. are now foreign-born, significantly

2. contributing to the country’s productivity growth, particularly in tech hubs like Boston, Seattle, and San Francisco. Economic Gains from Skilled Immigrants: Skilled immigrants have become integral to U.S. innovation and entrepreneurship, with their contributions spanning various sectors, from low-skill service industries to high-tech, venture capital-backed companies. Kerr notes that 30% to 50% of U.S. productivity growth from 1990-2010 can be attributed to skill immigration. Moreover, immigration has played a vital role in reshaping the geography of U.S. innovation, focusing it towards thriving tech hubs. Backlash Against Immigration: Despite robust employment rates, a growing backlash against immigration is observed, not only in the U.S. but globally. Kerr attributes this to concerns over economic displacement and regional disparities. While high-tech clusters may readily see the benefits of immigration, stagnant rural communities may not. Politicians often exploit discontent by targeting foreigners, contributing to the rising anti-immigrant sentiment. Implications for Migrants: In an election year, calls for immigration curbs create uncertainty for migrants contemplating their future in the U.S. Harsh political rhetoric and animosity towards existing migrants raise concerns about the country’s attractiveness compared to other destinations. Kerr emphasizes that a more user-friendly immigration system and improved policies are crucial to maintaining the U.S. as an attractive choice for migrants. Gender Dimensions of Skilled Migration: While H-1B visa applicants are predominantly male, Kerr highlights the increasing trend of skilled immigration being higher among women globally. He urges policymakers and business leaders to consider making destinations more attractive for women migrants. Improving the H-1B Visa System:

3. Kerr proposes several improvements to the H-1B visa system, including prioritizing visa allocation through mechanisms like wage ranking or auctions, instituting a minimum wage for the visa, and indexing the program’s size to employment levels. He emphasizes the need for a more efficient system that can adapt to changing economic conditions. Business Leaders’ Role: Kerr underscores the responsibility of business leaders in shaping the discourse around skilled migration. He advocates for business leaders to articulate the broader economic benefits of skilled migration, ensuring that the conversation goes beyond a few tech clusters. By doing so, they can contribute to a more informed and constructive discussion on immigration policy. Conclusion: In conclusion, William R. Kerr’s insights provide a comprehensive understanding of the economic impact of skilled migration in the U.S. His research underscores the importance of embracing immigration for innovation and entrepreneurship while acknowledging the challenges that come with managing public sentiment and political discourse. As the conversation continues, it becomes clear that a nuanced and well- informed approach is essential to navigating the complexities of skilled migration and ensuring its positive contribution to the U.S. economy.