Highly-educated immigrants and native occupational choice

Economic debate about the consequences of immigration in the US has largely focused on how influxes of foreign-born labor with little educational attainment have affected similarly-educated native-born workers. Fewer studies analyze the effect of immigration within the market for highly-educated labor. We use O*NET data on job characteristics to assess whether native-born workers with graduate degrees respond to an increased presence of highly-educated foreign-born workers by choosing new occupations with different skill content. We find that immigrants with graduate degrees specialize in occupations demanding quantitative and analytical skills, whereas their native-born counterparts specialize in occupations requiring interactive and communication skills. When the foreign-born proportion of highly-educated employment within an occupation rises, native employees with graduate degrees choose new occupations with less analytical and more communicative content. For completeness, we also assess whether immigration causes highly-educated natives to lose their jobs or move across state boundaries. We find no evidence that either occurs