Association for Public Policy Analysis & Management

In this article, I study the effects on course selection and college major choices of the Optional Practical Training (OPT) extension for foreign students who graduate in science, technology, engineering, and mathematics (STEM) degrees. In 2008, the period that foreign STEM students could work in the US while remaining on their student visa was extended from 12 to 29 months after graduation. The intention of the policy was to increase the chance of foreign students to find permanent employment in the US, which would presumably help address the shortage of STEM workers as well as to maintain the competitiveness of academic institutions in attracting foreign students.

To study this question, I use unique, administrative data on higher education enrollment from the state of Ohio. These data include information on demographics, admission criteria, GPA, and college attendance. The data also allow me to observe course taking behavior of student and the students’ declared major term-by-term. Theory suggests that the OPT extension will: (1) increase STEM majors for foreign students because the premium to a STEM major has increased; (2) increase the number of foreign students who choose to study STEM in the US; and (3) potentially decrease the number of US-born students who study STEM, although this prediction is not certain. To obtain estimates of interest, I employ a difference-in-difference research design. I compare course selection and major choices of US-born and foreign-born students pre- and post the 2008 change in OPT training period.