The U.S. doesn’t hold onto international graduates, study finds
Just-released research paints a fuller and more sophisticated picture of international students’ transition to the work force and impact on the American labor pool than previously understood. But the new paper also underscores how poorly the United States does in holding onto talented foreign graduates, finding “significant leakage” of American-educated workers from the labor market.
The paper, “International College Students’ Impact on the U.S. Skilled Labor Supply,” examines the transition of recent graduates to work, through Optional Practical Training, the popular work program for international students. OPT, as the program is known, is the most-common route for graduates seeking to gain American work experience because they can remain on their student visas.
The researchers found that one in 10 international bachelor’s-degree graduates and one in four master’s graduates take their first job in the same state in which they went to college. A large share of international students stay local in their first job — two-thirds of bachelor’s graduates and half of master’s graduates were employed within 10 kilometers of their alma mater.
The researchers used what is known as an instrumental variable approach, introducing an additional factor, nonresident tuition, as a control to help estimate a causal relationship between international enrollments and skilled employment.
While the paper, published by the National Bureau of Economic Research, acknowledges that colleges “do not explicitly enroll students on the basis of their labor-market potential,” increased international enrollment expands America’s skilled work force, it found. Each additional foreign master’s graduate, for example, adds 0.23 more skilled workers.
But should that impact be greater? The researchers argue yes. Flipped around, they write, “more than 70 percent of locally educated foreign master’s and about 90 percent of bachelor’s graduates do not translate into high-skilled supply.”
“The headline is how few international students stay in the U.S. after graduation,” said Giovanni Peri, a professor of economics and founding director of the Global Migration Center at the University of California at Davis. Peri is one of the paper’s authors, along with two researchers at the University of Luxembourg, Michael Beine and Morgan Raux.
U.S. government policies, such as caps on the number of skilled-worker visas, make it difficult for international graduates to start their careers here, Peri said. Even OPT, the most straightforward path, can be “short term, cumbersome, and uncertain,” he said.
Peri would like to see new approaches, such as giving green cards to at least some foreign graduates of American colleges, but such proposals have failed to win congressional approval. Meanwhile, he noted that other countries, like Canada and Australia, have enacted more international-student-friendly policies, helping them to attract top graduates.
And retaining more international graduates could have an outsized effect on local college-town economies, given that most students who remain in the United States take jobs close to their colleges.
The researchers demonstrate how one policy change has already made a difference. In 2008, President George W. Bush expanded OPT to allow international students in certain science, technology, engineering, and mathematics majors to work for as long as 29 months after graduation, up from 12 months. (In 2016, the period was extended, to three years, and over time additional fields have been added to the list of approved STEM majors.)
The impact of the change on bachelor’s students was difficult to estimate, Peri said. Under the more-generous policy, the share of STEM master’s graduates who have stayed and worked in the United States has doubled, from one in 10 students to roughly two in 10.