The firms who do not win the visa lottery “just become smaller firms” instead of hiring market-rate labor because they still have to compete in a market against other firms who won the visa lottery and have access to below-market-rate labor.
Did the economists who ran this study miss this? Do they explain it?
I’d push back a bit on the idea that they simply missed it. They actually test something very close to this in the appendix: whether losing the lottery changes the competitive environment firms report facing. They don’t find a statistically significant competition effect
fwlr · · focus · HN ↗
Did the economists who ran this study miss this? Do they explain it?
HexPhantom · · focus · HN ↗