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In: Economics

among college graduates how does the native born/immigrant wage gap in STEM fields compare to the...

among college graduates how does the native born/immigrant wage gap in STEM fields compare to the overall native born/immigration wage gap?

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Expert Solution

Many foreign-born staff with advanced degrees earned these degrees in the U.S. Upon finishing their education, they decided to live in the country rather than move to their home countries. They are especially prevalent in software engineering and other computer-related work. Immigrants earn less than native-born workers in most professions, even after accounting for workers' attributes such as age, education, and gender. But this pattern is weaker in STEM fields and may even be reversed.

In 1990, STEM native workers earned more than immigrants for both those with advanced degrees and those whose final degree was a bachelor's degree. In 2012, STEM immigrant workers earned more than their native counterparts. Immigration of STEM workers may be an important input into U.S. productivity growth. In modern growth theory, the share of R&D-based workers plays a role in setting the pace of long-term growth. As highly skilled immigrants are drawn to STEM fields, they are likely to be part of U.S. innovation.

Highly educated immigrants in countries like Canada and the US are disproportionately educated in STEM fields compared to natives. This provides an opportunity for highly educated immigrants to make a disproportionate contribution to technical innovation and therefore to increase productivity and GDP growth. Nevertheless, merely attracting STEM immigrants does not necessarily have these benefits.


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