Asian-Born Scientists and Engineers: Their Immigration Flow and Labor Market Adjustment

Abstract

This paper examines the flow of Asian-born scientists and engineers and their labor market adjustment. First, main elements to affect their immigration flow are described: supply, demand, and institution. The supply has two sources: foreign students and direct immigrants. The scarcity of domestic workers is the most important factor affecting demand of immigration. Institution, such as immigration polices, is another element to influence the immigration flow. These three factors are also interrelated with one another. Second, by using the 1980 U.S. Census data set, their labor market adjustment is explored in terms of hourly wages. Compared to the native-born white, there is no evidence that Asian-born scientists and engineers receive lower wages or lower return on human capital. Also, the finding shows no effect of the placement in the labor market, associated with their handicaps of race or of the foreign-born, on wages.