Morgan Raux

Internal seminars

Morgan Raux

University of Luxembourg
The Impact of Recruitment Competition on Firms' Labord Demand for High-Skilled Foreign Workers

MEGA Salle Carine Nourry

MEGA - Salle Carine Nourry

Maison de l'économie et de la gestion d'Aix
424 chemin du viaduc
13080 Aix-en-Provence

Thursday, November 30 2023| 12:30pm to 1:30pm

Nathalie Ferrière: nathalie.ferriere[at]
Federico Trionfetti: federico.trionfetti[at]


This paper estimates the causal effect of recruitment competition on firms’ labor demand for high-skilled foreign workers. I assemble a new data set, combining a firm-level panel of all Labor Condition Applications (LCAs) submitted as a first step to obtaining H-1B visas between 2010 and 2019 with online job vacancies and data on venture capital (VC) investments. I use plausibly quasi-exogeneous variation in VC investments in start-ups to instrument yearly changes in recruitment competition at the local labor market level. I find that a one standard deviation increase in the number of job postings advertised by start-ups yields an 8 percent increase in the number of LCAs submitted by employers in the market and a 3 percent increase in the wages advertised in these LCAs. Estimates are only significant for computer occupations. These results support the role of labor market tightness in explaining the absence of the crowding-out effect from H-1B workers against close native substitutes.