The Location of Foreign Human Capital in the United States

Abstract

Among the millions of newcomers entering the United States every decade, those with extensive human capital are of particular importance for local economies. This study uses data from the American Community Surveys, 2004 to 2007 and compares the locational patterns of highly educated individuals coming from abroad with that of highly educated individuals migrating internally. The study finds that the locational choices of highly educated newcomers from abroad are similar to those of highly educated domestic migrants but that there are some important differences. Gateway states are substantially more successful in attracting human capital from abroad than domestic human capital; foreign human capital is more strongly attracted to existing human capital agglomerations than domestic human capital; and a manufacturing-based industry is a deterrent for the attraction of both foreign and domestic highly educated in-migrants, but the deterrent effect is stronger for domestic human capital than for human capital from abroad.