December 2025

IZA DP No. 18333: Weighting the H-1B Lottery: Implications for Worker and Diversity and Employment Concentration

The H-1B program allows firms in the United States to temporarily hire foreign workers in specialty occupations. Demand outstrips supply, and the government allocates status through a random lottery. In September 2025, The United States Department of Homeland Security (DHS) proposed a new lottery process that would weight applications favoring workers receiving higher wage offers. This short article demonstrates that a weighted lottery would increase the ethnic diversity of H-1B recipients. Implications for H-1B employment concentration are particularly sensitive to threshold cutoffs used to construct weights.