Transition of international science, technology, engineering, and mathematics students to the U.S. labor market: the role of visa policy

Abstract

I analyze how visa policies affect international students' transition to the U.S. labor market. The Optional Practical Training (OPT) program permits international students to work via a student visa for a limited period after graduation before obtaining a work visa—an uncertain process due to the binding visa cap. I find that the extension in the length of OPT terms for students in science, technology, engineering, and mathematics (STEM) increases their likelihood of initially staying in the United States and using OPT. This result suggests that uncertainties about obtaining work visas hinder international STEM students' participation in the U.S. labor market. (JEL J61, K37, I23).