Skilled immigration frictions as a barrier for young firms

• 成果类型: Article
• 署名作者: Mandelman, Federico; Mehra, Mishita; Shen, Hewei
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Atlanta; University of Richmond; University of Oklahoma System; University of Oklahoma - Norman
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2025.103811
• 发表日期: 2025
• 关键词: skilled immigration; Start-ups; High-technology firms; firm dynamics

摘要

This paper examines the impact of immigration policy frictions on technology-intensive firms by age cohort. The firm-level empirical evidence shows that H-1B policy restrictions on skilled immigrants directly affect the survival of young firms in technology-intensive sectors. We develop a novel general equilibrium model with firm entry and exit that mimics the policy frictions in the H-1B program. The model matches the age distribution of firms in hightechnology sectors and shows that immigration policy reforms that increase the entry of younger firms induce greater exit of older, less productive firms, thereby increasing efficiency.