We analyze location choices of foreign-born science and engineering students receiving PhDs from US universities. Foreign students who stay in the United States are positively selected on observables. They tend to stay in the United States during periods of strong US economic growth and during periods of weak home country economic growth. Foreign students from higher-income countries and from recently democratized countries tend not to remain in the United States. Education and innovation may therefore be part of a virtuous cycle by which education enhances a country’s prospects for innovation and innovation makes the country more attractive for scientists and engineers.

Using the American Community Surveys, I examine the wages of immigrant computer and engineering workers. Immigrants’ higher education gives them a wage advantage over natives, an advantage larger for computer than for engineering workers, and larger in occupation-based samples than in education-based samples. Among holders of engineering degrees, immigrants earn less than natives, penalized by a high return to English proficiency. The results suggest that imperfect English may reduce their occupational advancement, or an unobserved factor may reduce both occupational advancement and the incentive to perfect English. In all samples, top immigrants from the highest-income countries far outearn top natives.

Immigration may affect the likelihood that US natives major in science or engineering. Foreign-born students may crowd US natives out of science or engineering, or they may have positive spillovers on US natives that attract or retain them in those fields. This study uses data on college majors from the 2009–11 American Community Surveys to examine the effect of the immigrant share in US natives’ age cohort while they are in high school or in college. We find some evidence that immigration adversely affects whether US-born women who graduated from college majored in a science or engineering field.

Knowledge producers conducting research on a particular set of questions may respond to supply and demand shocks by shifting resources to a different set of questions. Cognitive mobility measures the transition from one location to another in idea space. We examine the cognitive mobility flows unleashed by the influx of Soviet mathematicians into the United States after the collapse of the Soviet Union. The data reveal that American mathematicians moved away from fields that received large numbers of Soviet émigrés. Diminishing returns in specific research areas, rather than beneficial human capital spillovers, dominated the cognitive mobility decisions of knowledge producers.

We study the impact of skilled immigrants on the employment structures of US firms using matched employer-employee data. Unlike most previous work, we use the firm as the lens of analysis to account for greater heterogeneity and the fact that many skilled immigrant admissions are driven by firms themselves (e.g., the H-1B visa). OLS and IV specifications show rising overall employment of skilled workers with increased skilled immigrant employment by the firm. Employment expansion is greater for young natives than for their older counterparts. The departure rates for older workers relative to younger workers appear highest for those in STEM occupations.

We present and calibrate a dynamic model that characterizes the labor market for computer scientists. In our model, firms can recruit computer scientists from recently graduated college students, from STEM workers working in other occupations, or from a pool of foreign talent. Counterfactual simulations suggest that wages for computer scientists would have been 2.8%–3.8% higher and the number of Americans employed as computer scientists 7.0%–13.6% higher in 2004 if firms could not hire more foreigners than they could in 1994. In contrast, total computer science employment would have been 3.8%–9.0% lower and consequently output smaller.

Science, technology, engineering, and mathematics (STEM) workers are fundamental inputs for innovation, the main driver of productivity growth. We identify the long-run effect of STEM employment growth on outcomes for native workers across 219 US cities from 1990 to 2010. We use the 1980 distribution of foreign-born STEM workers and variation in the H-1B visa program to identify supply-driven STEM increases across cities. Increases in STEM workers are associated with significant wage gains for college-educated natives. Gains for non-college-educated natives are smaller but still significant. Our results imply that foreign STEM increased total factor productivity growth in US cities.

This paper examines how high-skilled immigrants contribute to knowledge diffusion using a rich data set of Russian scientists and US citations to Soviet-era publications. Analysis of a panel of US cities and scientific fields shows that citations to Soviet-era work increased significantly with the arrival of immigrants. A difference-in-differences analysis with matched paper pairs also shows that after Russian scientists moved to the United States, citations to their Soviet-era papers increased relative to control papers. Both strategies reveal scientific field–specific effects. Ideas in high-impact papers and papers previously accessible to US scientists were the most likely to “spill over” to natives.

By examining the ethnic identity of authors in over 2.5 million scientific papers written by US-based authors from 1985 to 2008, we find that persons of similar ethnicity coauthor together more frequently than predicted by their proportion among authors. The greater homophily is associated with publication in lower-impact journals and with fewer citations. Meanwhile, papers with authors in more locations and with longer reference lists get published in higher-impact journals and receive more citations. These findings suggest that diversity in inputs by author ethnicity, location, and references leads to greater contributions to science as measured by impact factors and citations.