Shekhar Tomar

We estimate the impact of immigration policy uncertainty in the US on the demand for workers in the sending country. To do this, we exploit the increased uncertainty around H-1B visas after President Trump’s win in the 2016 Republican primary election. Using postings data from the largest Indian jobs platform, we find that firms more exposed to the shock increase their India-based job postings immediately after the heightened uncertainty. This surge is attributed to the relocation of jobs from the US to India for occupations more amenable to offshoring. India-headquartered firms lead this change and witness an increase in exports.