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Division of Science Resources Statistics The Complex National Effects of HighSkilled Migration Council for Foreign Relations New York, NY February 18, 2007 Mark Regets National Science Foundation: Arlington Institute for the Study of Labor (IZA): Bonn (Affiliations for biographical purposes only) [email protected] 703-292-7813 1 ETHICAL DISCLAIMER: (No, not the one that says that my employer does not necessarily share my views, although that is also true.) While it is very useful for policy makers and social scientists to study the effects of the movement of highlyskilled migrants: • Freedom of movement is a human right that would have positive value even if all economic effects were negative. • The greatest benefits of migration accrue to the individuals choosing to move across borders. 2 National Science Foundation Division of Science Resources Statistics Changes in how S&T is done: • More S&T activity of all types is done across borders – Teams and collaborations physically located in multiple countries – Both basic research & product development • Global capacity for S&T growing rapidly in most part of the world. • S&T capacity much less centralized, U.S. now less than ¼ of world R&D 3 National Science Foundation Division of Science Resources Statistics Sending Countries: Possible Negatives • “Brain drain”: lost productive capacity due to at least temporary absence of workers and students with higher skills • Less support for public funding of higher education 4 National Science Foundation Division of Science Resources Statistics Share of college-educated foreign-born individuals in the United States who hold foreign degrees: 2003 (Percentages) Bachelor’s Master’s Professional Doctoral All degree levels Highest Any degree from foreign foreign university university degree 47.9 49.7 26.8 58.6 58.5 49.5 36.3 78.6 41.4 54.8 Source: NSF/SRS 2003 National Survey of College Graduates. Foreign secondary school 65.8 74.2 63.3 93.0 69.2 5 National Science Foundation Division of Science Resources Statistics Sending Countries: Possible Positives • Increased incentive for natives to seek higher skills • Possibility of exporting skills, which reduces risk and raises expected return of personal education investments • Increase in domestic economic return to skills • Knowledge flows and collaboration • Increased ties to foreign research institutions • Export opportunities for technology • Return of natives with foreign education and human capital • Remittances and other support from diaspora networks 6 National Science Foundation Division of Science Resources Statistics Relationship of foreign-born U.S. S&E doctorate recipients to their country's scientific collaboration with United States: 1994–98 graduates and 1999–2003 articles 4.000 Foreign-born U.S. doctorate holders 1994–98 (log) 3.000 2.000 1.000 Correlation = +0 .66 0.000 0.000 0.500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500 -1.000 -2.000 Coauthored articles 1999–2003 (log) SOURCES: Thomson ISI, Science Citation Index and Social Sciences Citation Index, http://www.isinet.com/products/citation/; ipIQ, Inc.; National Science Foundation, Division of Science Resources Statistics, Survey of Earned Doctorates (1994–98), special tabulations; and National Science Board, Science and Engineering Indicators, 2006. 7 National Science Foundation Division of Science Resources Statistics Chinese Student Flows: 1985-2005 Students Leaving 0.9 Students Returning 0.8 120,000 100,000 0.7 Ratio of Returning to Domestic Postgraduate Degrees Awarded 0.6 80,000 0.5 60,000 0.4 0.3 40,000 0.2 20,000 0.1 05 04 20 20 03 20 02 20 01 20 00 99 Source: NSF/SRS analysis of data from the China National Bureau of Statistics 20 98 19 19 97 19 96 19 95 19 94 93 19 19 92 19 91 19 90 19 89 88 19 87 19 19 19 86 0 85 0 19 Students leaving & returning Ratio of Returning to Leaving Ratio 140,000 8 National Science Foundation Division of Science Resources Statistics Receiving Countries: Possible Negatives • Decreased incentive of natives to seek higher skills • Possibility of displacement of native students from best schools • Language and cultural barriers between native and immigrant highly skilled workers • Technology transfers to competitors and to possibly hostile countries 9 National Science Foundation Division of Science Resources Statistics Relationship of share of foreign-born U.S. S&E doctorate recipients to median salary for all S&E doctorate recipients in same S&E field: 1998–2002 graduates in 2003 Median salary $ thousands) 90 80 70 60 50 40 30 Correlation = + 0 .67 20 10 0 0 10 20 30 40 50 Foreign-born U.S. doctorate recipients (%) 60 70 80 SOURCE: National Science Foundation, Div ision of Science Resources Statistics, Scientists and Engineers Statistical Data Sy stem (SESTAT) (2003), http://sestat.nsf.gov . 10 National Science Foundation Division of Science Resources Statistics Fixed-effects model estimates of the change in U.S. native S&E graduate enrollment associated with changes in graduate temporary-visa foreign student enrollment An increase of one fulltime foreign student in a S&E graduate department is associated with: + 0.02 fulltime U.S. citizen/perm. minority + 0.33 fulltime U.S. citizen/perm. white - 0.07 full time U.S. citizen/perm. Asian Model: Departmental level fixed effects controlling for department size in the previous period, dummy variables for year, and changes in the enrollment of other groups. Data: NSF Graduate Student Survey, 1982-1995 11 National Science Foundation Division of Science Resources Statistics 12 National Science Foundation Division of Science Resources Statistics Receiving Countries: Possible Positives • Increased R&D and economic activity due to availability of additional highly skilled workers and students. • Knowledge flows and collaboration. • Increased ties to foreign research institutions. • Export opportunities for technology. • Increased enrollment in graduate programs, possibly keeping smaller programs alive. 13 National Science Foundation Division of Science Resources Statistics Trends in the percent foreign-born in science and engineering occupation in the U.S.: 1990-2004 45.0 40.0 35.0 1990 Census 2000 Census 2004 Census ACS 30.0 25.0 20.0 15.0 10.0 5.0 0.0 All college educated Bachelor’s Master’s Doctorate 14 National Science Foundation Division of Science Resources Statistics Number of Postdocs at U.S. Universities by Citizenship Status 15 SOURCE: NSF/SRS Survey of Graduate Students and Postdocs (GSS) 2005 National Science Foundation Division of Science Resources Statistics Multiple Node Knowledge Network • Increased and more complex flows of students, workers, and finances • Increased regional S&T collaboration and links between regions • Global and regional labor markets for some skills • Increased importance of individuals with high “betweenness”—those connecting the nodes 16 National Science Foundation Division of Science Resources Statistics Possible Global Effects • • • • Better international flow of knowledge. Better job matches through global job search. Greater job options for workers and researchers. Greater ability of employers to find rare or unique skill sets. • Formation of international research or technology clusters—e.G., Silicon valley, CERN). • Net positive effect on incentives for individual human capital investments as a result of international competition for scarce human 17 capital. National Science Foundation Division of Science Resources Statistics Resources: NSF Division of Science Resources Statistics: www.nsf.gov/statistics/ Science and Engineering Indicators 2006: www.nsf.gov/statistics/seind06/ Institute for the Study of Labor (IZA) Discussion Papers www.iza.org Mark Regets 703-292-7813 [email protected] 18 Supplemental Slides 19 Foreign-born proportion of S&E degree holders in the United States: 2003 Source: NSF/SRS SESTAT 2003 20 National Science Foundation Division of Science Resources Statistics Lower bound estimates of foreign-born individuals with U.S. science and engineering Ph.D.s and initial U.S. employment working outside the United States in 1995 (Percent) Decade of Ph.D. 1955–64 1965–74 1975–84 1985–94 Those residing outside the United States in 1995 13.7 22.7 22.2 19.4 Those who had left the United States between 1993 and 1995 0.8 1.3 2.3 4.1 Note: Data include foreign-born U.S. citizens, permanent residents, and those who expressed definite plans to stay at time of receipt of their degree. Source: NSF/SRS 1993, 1995 Survey of Doctorate Recipients. 21 National Science Foundation Division of Science Resources Statistics Is there much of a native-born U.S. Diaspora? • 485,000 college educated U.S. Citizens found in 2000/2001 censuses of OECD countries (Docquier 2004) • 1.2 million U.S. Individual tax returns filed abroad (growing at 3.5% annual rate) • 3 percent of U.S. Native-born Ph.D.s in science and engineering have initial foreign employment 22 National Science Foundation Division of Science Resources Statistics Simple model of expected value of human capital when migration is an option E(H) = Pm Ef(H) + (1 – Pm) Ed(H) where Pm is the subjective individual probability of migration Ef is the expected value of human capital H in the foreign labor market Ed is the expected value of the same human capital in the domestic labor market 23 National Science Foundation Division of Science Resources Statistics Doctorate-holders in U.S. Science and Engineering Occupations by Selected Place of Birth EU-15 OECD (ex. U.S.) 1990 2000 Asia-10 All Foreign-born U.S.-born 0 50,000 100,000 150,000 200,000 250,000 300,000 24 National Science Foundation Division of Science Resources Statistics Percent of Stay 1998 foreign-born of U.S. doctorates working in the Five-year Rate of 1998recipients Temporary Visa Ph.D. Recipients United States on a temporary visa (stay rate): 1999–2003 (Percent) Degree field 1999 All fields 66 Agricultural science 48 Computer science 71 Economics 40 Life science 72 Mathematics 67 Physical science 75 Other social science 39 Computer/electrical engineering 78 Other engineering 69 2000 64 47 71 39 68 63 74 38 76 67 2001 63 47 72 37 67 62 72 37 75 67 2002 62 47 72 37 68 60 71 37 74 65 2003 61 46 70 36 67 59 69 37 70 64 25 SOURCE: Michael Finn, Stay Rates of Foreign Doctorate Recipients From U.S. Universities, 2005, Oak Ridge Insitute for Science and Education (2005). National Science Foundation Division of Science Resources Statistics Top 11 countries with citizens with at least a tertiary-level education residing abroad in OECD countries (2000) 26 Source: Docquier and Marfouk, International Migration by Educational Attainment (1990-2000), World Bank National Science Foundation Division of Science Resources Statistics Lower Bound Estimates of U.S. Citizens and Permanent Resident Ph.D. Graduates residing outside the U.S.: 1995 Foreign-born with citizenship at time Permanent resident Native Born of Ph.D. at time of Ph.D. Percent of Percent Percent Number Total Number of Total Number of Total Abroad Abroad Abroad Abroad Abroad Abroad All S&E Life Sciences Math and Comp. Sci. Physical Sciences Social Sciences Engineering 13,900 3,400 1,000 2,200 5,900 1,500 3.3 2.7 4.2 2.5 4.2 3.0 1,400 200 100 300 300 500 7.4 5.0 4.2 8.7 7.5 9.1 4,300 900 200 800 1,200 1,300 13.6 12.0 10.2 12.6 18.0 13.1 Total citizen or permanent resident at time of Ph.D. Percent Number of Total Abroad Abroad 19,600 4,500 1,200 3,200 7,400 3,300 4.1 3.3 4.6 3.3 4.9 5.0 27