“Essential” Migrants: Evidence from the 2020 H-2B Visa Lottery

Authors

Parag Mahajan, University of DelawareFollow

Publication Date

4-10-2025

Series

Upjohn Institute working paper ; 25-414

DOI

10.17848/wp25-414

Abstract

I study how access to foreign-born workers impacts firms and local economics in times of acute crisis. The 2020 H-2B visa lottery randomly gave some U.S. firms the chance to hire low-wage, migrant workers during the height of the COVID-19 pandemic. Using administrative data across three government agencies, I find that access to H-2B workers led to decreased business closures, increased revenues, increased payroll, and increased employment in 2020. I also find suggestive evidence that these effects spilled over to non-participant firms within the same county.

Issue Date

April 2025

Note

Upjohn project #58161

Sponsorship

W.E. Upjohn Institute for Employment Research Early Career Research Award No. 22-58161-09

Subject Areas

LABOR MARKET ISSUES; INTERNATIONAL ISSUES; Immigration; Local labor markets; Business and tax incentives