Expert Immigration Frictions as a Barrier for Younger Corporations

Federico S. Mandelman, Mishita Mehra, and Hewei Shen

Working Paper 2024-2

February 2024

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This paper research the affect of expert immigration coverage frictions in the US on technology-intensive companies by age cohorts. We use firm-level knowledge and a common equilibrium mannequin with endogenous agency entry and exit. The empirical outcomes present that expert immigration coverage frictions immediately affect younger agency dynamics in technology-intensive sectors by affecting agency survival. Our common equilibrium mannequin incorporates expert international labor and immigration coverage frictions that mimic the H-1B coverage and matches the age distribution of companies in high-technology sectors, displaying additionally that elevated entry of youthful companies results in a better exit of older companies.

JEL classification: F22, M13

Key phrases: expert immigration, start-ups, high-technology companies, agency dynamics

The authors thank seminar individuals on the College of Washington, Wharton Migration and Organizations Convention, Liberal Arts Macroeconomic Convention, Virginia Commonwealth College, and the ASSA assembly for useful feedback. In addition they acknowledge Nick Croteau and Li Guo for glorious analysis help. Hewei Shen is grateful for help from the Middle for Progress and Alternative and the Junior College Summer time Fellowship from the Dodge Household Faculty of Arts and Sciences on the College of Oklahoma. The views expressed listed below are the authors’ and never essentially these of the Federal Reserve Financial institution of Atlanta or the Federal Reserve System. Any remaining errors are the authors’ accountability.

Please deal with questions relating to content material to Federico S. Mandelman, Federal Reserve Financial institution of Atlanta, Analysis Division, 1000 Peachtree St. NE, Atlanta, GA 30309-4470, 404-498-8785; Mishita Mehra, Robins College of Enterprise, College of Richmond; or Hewei Shen, Division of Economics, College of Oklahoma.

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