Britta Glennon

Britta Glennon (Under Review), Building a Wall Around Science: The Effect of U.S.-China Tensions on International Scientific Research.

Abstract: This paper examines the impact of rising U.S.-China geopolitical tensions on three main dimensions of science: STEM trainee mobility between these countries, usage of scientific works between scientists in each country, and scientist productivity in each country. We examine each dimension from a “U.S.” perspective and from a “China” perspective in an effort to provide evidence around the asymmetric effects of isolationism and geopolitical tension on science. Using a differences-in-differences approach in tandem with CV and publication data, we find that between 2016 and 2019 ethnically Chinese graduate students became 16% less likely to attend a U.S.-based Ph.D. program, and that those that did became 4% less likely to stay in the U.S. after graduation. In both instances, these students became more likely to move to a non-U.S. anglophone country instead. Second, we document a sharp decline in Chinese usage of U.S. science as measured by citations, but no such decline in the propensity of U.S. scientists to cite Chinese research. Third, we find that while a decline in Chinese usage of U.S. science does not appear to affect the average productivity of China-based researchers as measured by publications, heightened anti-Chinese sentiment in the U.S. appears to reduce the productivity of ethnically Chinese scientists in the U.S. by 2-6%. Our results do not suggest any clear “winner,” but instead indicate that increasing isolationism and geopolitical tension lead to reduced talent and knowledge flows between the U.S. and China, which are likely to be particularly damaging to international science. The effects on productivity are still small but are likely to only grow as nationalistic and isolationist policies also escalate. The results as a whole strongly suggest the presence of a “chilling effect” for ethnically Chinese scholars in the U.S., affecting both the U.S.’s ability to attract and retain talent as well as the productivity of its ethnically Chinese scientists.

Exequiel Hernandez, Britta Glennon, Francisco Morales, Seth Carnahan (2024), Does Employing Skilled Immigrants Enhance Competitive Performance? Evidence from European Football Clubs, Management Science.

Abstract: We investigate the effect of employing skilled immigrants on the competitive performance of organizations by studying European football (soccer) clubs in Germany, Italy, France, England, and Spain from 1990-2020. Detailed microdata from this setting offers unusual transparency on the migration and hiring of talent and their contribution to collective performance. Further, country-level rules govern how immigrant players are defined and the number of immigrant players that clubs can deploy. Using changes to these rules as the basis for instrumental variables, we find that the number of immigrant players in the club’s starting lineup has a positive local average treatment effect on the club’s performance. We find evidence that immigrant players enhance club performance because they exhibit higher individual talent than natives and because they enable their clubs to deploy a wider variety of on-field strategies and actions. The latter mechanism is novel to the literature.

Britta Glennon (2024), Skilled Immigrants, Firms, and the Global Geography of Innovation, Journal of Economic Perspectives.

Abstract: This article begins with an overview of the policy environment in the United States and abroad for skilled immigration, with a particular focus on "supply-driven" versus "demand-driven" systems. The overview emphasizes that firms play a central role in the skilled immigration process in most countries. I then survey the ample evidence that skilled immigrants have a strong positive effect on firm outcomes, followed by a discussion of the many margins of adjustment that firms have when their access to skilled immigrants is affected by national immigration policy. Finally, given such margins of adjustment and the importance of skilled immigrants to firms, I consider how the policies that affect skilled migration shape the global geography and quality of innovation. I conclude by discussing policy implications and open questions. In particular, I emphasize that evaluations of the impact of skilled immigration should not be constrained within borders: immigration flows and national immigration policies affect the global geography of innovation and investment.

Saerom Lee and Britta Glennon (Under Review), The Effect of Immigration Policy on Founding Location Choice: Evidence from Canada’s Start-up Visa Program.

Abstract: To spur entrepreneurship and economic growth, an increasing number of countries have introduced immigration policies that provide visas to skilled entrepreneurs. This paper investigates whether these policies influence the founding location choice of immigrant founders, by leveraging the introduction of Canada's Start-up Visa Program in 2013. We demonstrate that this immigration policy increased the likelihood that U.S.-based immigrants have a start-up in Canada by 69%. Our results show that Asian immigrants (who have a higher representation in Canada than in the U.S.) are disproportionately more likely to migrate to Canada to start their businesses, whereas Hispanic immigrants (who have a smaller representation in Canada than in the U.S.) are less inclined to do so. We also find that this propensity varies with the size of co-ethnic immigrant communities in the origin location. Overall, our study unveils the importance of immigration policies in determining founding location choice and has important implications for countries competing for global talent.

Britta Glennon (2023), How Do Restrictions on High-Skilled Immigration Affect Offshoring? Evidence from the H-1B Program, Management Science.

Abstract: Highly skilled workers are not only a crucial and relatively scarce input into firms’ productive and innovative processes, but are also a critical resource determining competitive advantage. An increasingly high proportion of these workers in the United States were born abroad and permitted to work on skilled worker visas. How do multinational firms respond when artificial constraints, namely, policies restricting skilled immigration, are placed on their ability to hire scarce human capital? This paper combines visa microdata and comprehensive data on U.S. multinational firm activity to demonstrate that firms respond to restrictions on H-1B immigration by increasing foreign affiliate employment at the intensive and extensive margins, particularly in China, India, and Canada. The most impacted jobs were R&D-intensive ones, but there is some evidence that non-R&D employment was also affected. The paper highlights a means by which firms can circumvent constraining policies and mitigate country-level risk, and it also suggests that, for the average multinational company (MNC), this means is imperfect; for every visa rejection, they hire 0.4 employees abroad. The most globalized MNCs are the most likely to respond to these restrictions by offshoring, highlighting that firm capabilities—in the form of prior internationalization—shape the decision and ability to offshore in response to skilled immigration restrictions; indeed, these firms hire 0.9 employees abroad for every visa rejection. More broadly, the paper provides evidence of a push factor for internationalizing knowledge activity: artificial constraints on resources result in firms circumventing restrictive policies in ways that may not be anticipated by policy makers.

Matthew Ross, Britta Glennon, Raviv Murciano-Goroff, Bruce A. Weinberg, Julia Lane (2022), Women are Credited Less in Science than are Men, Nature.

Abstract: There is a well-documented gap between the observed number of works produced by women and by men in science, with clear consequences for the retention and promotion of women1. The gap might be a result of productivity differences2,3,4,5, or it might be owing to women’s contributions not being acknowledged6,7. Here we find that at least part of this gap is the result of unacknowledged contributions: women in research teams are significantly less likely than men to be credited with authorship. The findings are consistent across three very different sources of data. Analysis of the first source—large-scale administrative data on research teams, team scientific output and attribution of credit—show that women are significantly less likely to be named on a given article or patent produced by their team relative to their male peers. The gender gap in attribution is present across most scientific fields and almost all career stages. The second source—an extensive survey of authors—similarly shows that women’s scientific contributions are systematically less likely to be recognized. The third source—qualitative responses—suggests that the reason that women are less likely to be credited is because their work is often not known, is not appreciated or is ignored. At least some of the observed gender gap in scientific output may be owing not to differences in scientific contribution, but rather to differences in attribution.

Britta Glennon, Miguel Garza Casado, Julia Lane, David McQuown, Daniel Rich, Bruce A. Weinberg, The Effect of Fiscal Stimulus: Evidence from COVID-19.

Abstract: Policymakers, faced with different options for replacing lost earnings, have had limited evidence to inform their decisions. The current economic crisis has highlighted the need for data that are local and timely so that different fiscal policy options on local economies can be more immediately evaluated. This paper provides a framework for evaluating real-time effects of fiscal policy on local economic activity using two new sources of near real-time data. The first data source is administrative records that provide universal, weekly, information on unemployment claimants. The second data source is transaction level data on economic activity that are available on a daily basis. We use shift-share approaches, combined with these two data sources and the novel cross-county variation in the incidence of the COVID-19 supplement to Unemployment Insurance to estimate the local impact of unemployment, earnings replacement, and their interaction on economic activity. We find that higher replacement rates lead to significantly more consumer spending – even with increases in the unemployment rate – consistent with the goal of the fiscal stimulus. Our estimates suggest that, based on the latest data, eliminating the Federal Pandemic Unemployment Compensation (FPUC) supplement would lead to a 44% decline in local spending. If the FPUC supplement is reduced to $200, resulting in a reduction of the replacement rate by 44%, spending would fall by 28%. Even if the FPUC supplement is reduced to $400, the replacement rate would fall by 29% and spending would fall by 12%. Because these data are available in every state, the approach can be used to inform decision making not just in this current crisis, but also in future recessions.

Britta Glennon, Prithwiraj Choudhury, Dany Bahar, An Executive Order Worth $100 Billion: The Impact of an Immigration Ban’s Announcement on Fortune 500 Firms’ Valuation.

Abstract: On June 22, 2020, President Trump issued an Executive Order (EO) that suspended new work visas, barring nearly 200,000 foreign workers and their dependents from entering the United States and preventing American companies from hiring skilled immigrants using H-1B or L1 visas. Exploiting this shock, and using event study methodology analyzing the cumulative average abnormal returns (CAARs) of Fortune 500 companies following this order, we find that the EO statistically and economically significantly caused negative CAARs of up to 0.45%, the equivalent of over 100 billion of US dollars of losses, based on the firms’ valuation before the event. Our results are particularly pronounced for firms that had maintained or increased their reliance on skilled immigrant workers over the prior years.

Lee G. Branstetter, Britta Glennon, J. Bradford Jensen (2019), The IT Revolution and the Globalization of R&D, Innovation Policy and the Economy, 19 (1), pp. 1-37.

Lee G. Branstetter, Britta Glennon, J. Bradford Jensen (2019), The Rise of Global Innovation by US Multinationals Poses Risks and Opportunities, Peterson Institute Policy Brief, 19 (9).