News Summary

• We find that H-1B exposure raised incomes for natives and pre-existing immigrants, with gains concentrated in non-STEM occupations.
• Income gains propagate forward through supply chains to downstream industries but not backward to upstream industries, consistent with a productivity shock rather than a labor supply shock.
• We find no direct effect on patenting, suggesting that productivity gains arise from better task execution rather than patentable invention.
• The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.