We study how access to high-skill labor affects the outcomes of start-up firms.We obtain exogenous variation in firms' ability to access skilled labor by using win rates in H-1B visa lotteries.Relative to other firms that also applied for H-1B visas, firms with higher lottery win rates are more likely to receive additional venture capital funding and to have a successful exit via an IPO or acquisition.H-1B visa lottery winners also subsequently receive more patents and patent citations.Overall, our results show that access to high-skill labor is a critical determinant of success for start-up firms.
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