Long-Run Effects of H-1B Immigration on the U.S. Economy (July 2026)

A study of H-1B visa expansion from 1999-2003 finds that increased immigration of skilled workers raised incomes for native workers and pre-existing immigrants, with benefits concentrated in non-STEM occupations and spreading through supply chains to downstream industries. The productivity gains appear to stem from improved task execution rather than new inventions, as there was no direct effect on patenting. The research suggests H-1B immigration created a productivity shock that benefited the broader economy without displacing native workers.