How Do Restrictions on High-Skilled Immigration Affect Offshoring? Evidence from the H-1B Program

This study investigates how multinational firms respond to restrictions on high-skilled immigration. Combining H-1B visa data with information on the activities of U.S. multinational firms, it shows that visa restrictions lead firms to increase employment in foreign affiliates, particularly in China, India, and Canada. The response is strongest among highly internationalized firms and is particularly pronounced for research-and-development-intensive positions.