Evaluating the H-1B Visa Program: Theoretical Issues

The H-1B visa program is popular and controversial at the same time. It is supposed to serve U.S. interests by helping bring some of the most talented scientists and engineers (S&E) to this country. There is considerable dispute, however, whether the program is successful in this regard, or whether employers misuse it to undercut the salaries of citizens and green card holders who apply for the same positions. This paper sorts out some of the theoretical issues that complicate empirical analyses and which, if ignored, could produce misleading results.