Greener pastures: why Indian international students leave the US labor market.

This paper revisits conventional wisdom on US degree premiums for immigrant workers and shows that, despite the benefits of a US degree, migration policies and substandard labor conditions contribute to international student motivations to return home. Using two original datasets, I find that about a third of Indian-born US graduates leave the US, seeking employment opportunities abroad and a respite from US work visa restrictions. I draw on 105 in-depth interviews and 7,177 employment histories constructed from LinkedIn, and the analysis demonstrates the use of digital data to shed new light on under-studied patterns of return migration in institutional perspective. I find that US work visas are related to the underemployment of immigrant workers, and gaps in visa availability are associated with US labor market departure for Indian international students. At the same time, foreign employers reward skills and credentials developed in the US, and the results suggest that US degrees carry a higher premium in foreign labor markets. The paper emphasizes the role of institutions in the skilled migration system and identifies disjunctures in US migration policy. I identify opportunities for policy reform to improve immigrant labor conditions and increase the retention of US-educated migrants in the US labor market. [ABSTRACT FROM AUTHOR]