It seems unrelenting these days. Attacks by anti-immigrationists on the two of the most useful non-immigrant visa categories, the H-1B and L-1 visas. The most recent attacks are based either on junk science or no science at all. Recently we received at the AILA National Office a letter from Professor Ray Marshall. AILA had issued a statement critical of the AFL endorsed Ray Marshall “plan” regarding immigration reform. This “plan” was highly supportive of the destructive Grassley-Durbin Anti-H-1B legislation. We were critical of this “plan” (and the Grassley-Durbin legislative proposal) because both the plan and the legislation are without merit and based on a lack of understanding of how our current employment based non-immigrant and immigration system actually works, what motivates employers to use the H-1B and L-1programs, and the tremendous historic and future benefits of these program.
A key part of Mr. Marshall’s letter reads as follows:
“Although we have grossly inadequate data about the H-1B and L-1 Visa programs, the data we do have clearly support the conclusion that these programs are used to displace U.S. workers and suppress their wages. Moreover, little or nothing is done to to ensure that these visas are used to import workers to fill real labor shortages–which, unlike the current system, would indeed strengthen the competitiveness of the American economy and promote broadly shared prosperity. Indeed, we have no reliable information about how many workers there are (estimates vary between 600,000 and 800,000), where and under what conditions they are employed, or how their numbers relate to total employment in the occupations where they are employed. These programs also do not have adequate safeguards to protect domestic or the foreign indentured workers from abuses. The recommendations in Immigration for Share Prosperity: A Framework for Comprehensive Reform are designed to address these defects. In addition to the provisions of the Durbin-Grassley bill, we need realistic, objective prevailing wage standards that will prevent these programs from being used to suppress the wages of American workers. Supporters often argue that the H-1B program is needed to attract the “best and the brightest” foreign workers, but the evidence shows that most of the foreign workers are hired for entry-level positions for which there do not appear to be shortages of qualified American workers. The H-1B and L-1 programs clearly need much better data and transparency to enable more effective evaluations of their impacts.
It also is hard to see why a regular job, which most of those held by H-1Bs appear to be, should be held by “temporary” visa holders indentured for 3, 6, or even 10 years. If there are validated shortages of workers for regular jobs that cannot be filled at market wages with qualified U.S. residents, it would be better to fill them with immigrants with full legal rights, including the right to earn citizenship.” (emphasis added).
The stunning breath of ignorance of how the H-1B and L-1 programs operate and are used by U.S. employers is only matched by Professor Marshall ‘s own acknowledgement that he has no evidence to support his non-peer reviewed conclusions. A formal response to Professor Marshall has been sent, but it is important that we all realize that those who understand and support these vital U.S. non-immigrant visa programs must not only voice our support, but provide the evidence to back it up.
Our exceptional Business Immigration Committee worked on a substantive response to Professor Marshall’s letter, with the lead taken by our Past President Ted Ruthizer. A key part of our response reads:
For starters, the H-1B status and its predecessor H-1 status have been a valuable part of our immigration system for almost 60 years, and the L-1 status for almost 40. And you might be surprised to learn that most economists who have studied these provisions disagree with you that H-1B professionals are hurting the American economy and the American worker. Rather, the vast majority of economists and business leaders who have looked at this issue, including Alan Greenspan, Jagdish Bhagwati, Nobel prize winning economist Gary Becker, Jack Welch, Michael Bloomberg, and Bill Gates are convinced that H-1B professionals (they’re not “guest workers” and they’re hardly “indentured” as you refer to them) have increased employment opportunities for all Americans, and their creativity and knowledge have furthered our national interest.
Here are additional points not mentioned in you letter that are worth noting. H-1Bs are designed for professionals, not for low level unskilled workers. Professor Richard Florida recently reported, “[F]or management and business occupations – including hard-fit financial jobs – overall the unemployment rate is 4.0 percent; and for professional and technical occupations, it remains less than four percent (3.6 percent). . . .
Of grave concern is that three times in your letter you say you really do not have data to back up your conclusions. More importantly, the studies you cite to have not been peer reviewed and have not been subject to critical analysis. Surely you are aware as an academic that without reliable data, it’s rash and unfounded for you to condemn the entire H-1B program, particularly when the benefits of the H-1B status are so strong. These benefits are not just intangibly based on opinion. Peer-reviewed studies, such as those conducted by Vivek Wadhwa, Executive in Residence, Pratt School of Engineering, Duke University, support the conclusion that the H-1B visa programs are good for America.
A couple of other important points you failed to note: H-1B professionals aren’t just computer scientists. They are also physicists, mathematicians, financial analysts, lawyers, economists, teachers, physicians serving in health professional shortage areas, and, like you, professors at virtually all American colleges and universities. Most of these H-1Bs aren’t recent arrivals. They are products of our finest universities, including your University of Texas.
The good news is that there are numerous studies coming out virtually every day with positive, reenforcing data on the importance of the H-1b program. These studies will continue to come because business and academia understand the importance of these visa categories, and the need to vocally oppose these anti-immigrationists. I spoke rather strongly about this today in my weekly radio show. It is amazing how easy it is to get worked up about these issues!
There is much more to our response to Professor Marshall, which you can read on AILA Infonet. But, this much you need to know. The gloves are off. The attacks on important and vital parts of our immigration system are underway. The anti-immigrationists know they cannot stop positive, effective immigration reform from happening, but they still think they can structure the updated immigration system in a way that achieves their vision of restrictive immigration and a limited ability of American employers to hire the workers they want and need to thrive in a recovering economy.
I am going to have to agree with Mike. Not only about the EB5 visa, but about maintaining a respectful level of discourse here. We all know that the process for attaining a green card visa is one of the most difficult an individual can attempt, so why not support these people as much as possible in their quest for US residency.
While I personally would argue that the EB5 visa is the best method for earning a green card visa as it relates to benefits for America, I do see valid points on both sides here. i just wish the argument had a little less venom. Can't we maintain a our maturity and argue passionately at the same time?
This is a great post Dmitry. I just had one of the ‘Doh!’ moments and ran back to correct my own site before publishing my comment. You see my own comment form did not match what I’m about to advise. I get less comments than you, so never noticed any problem. I’ve changed it now anyway so here goes.
part time worker
I'm Roy Lawson and not to be confused with the Java Pro. I'm no longer on the board of the Programmers Guild (but still support their efforts).
Just to make sure there is no confusion, I am not the Java Pro. And I'm not on the board of the Programmers Guild anymore. Haven't been for a couple of years at least. (Though, I do support their efforts)
I did contact Vivek Whadwa around the time of this article and engaged in a private email debate. Maybe that is why the confusion.
The Marshall Plan and the Durbin Grassley legislation are anything but destructive as claimed by Whadwa.. They close some serious loopholes which currently result in the H-1b and L1 visas being subject to high levels of fraud.
Finally, although Whadwa is currently in academia he has a past lobbying for the H-1b visa. And he has used every opportunity to politicize this issue. I believe his interest in this issue is more than academic, and his credibility as an academic is to be questioned.
If Whadwa is still following this thread, I wonder if he would be willing to disclose any major financial interests in firms that benefit financially from the H-1b visa. I doubt that he would – and I would be surprised if his primary source of income is from academia.
I currently live in the Detroit area where I have seen productive American citizens get replaced by H-1B's in the automotive IT fields. The vast amount of unemployment in Detroit proves just how mentally ill is the idea of foreign laborers adding value to the local workforce. It does just the opposite, and there have been numerous complaints about poor quality, communication breakdowns and outright fraud such as the use of fake resumes in conjumction with the H-1B programs. I sure hope that there are psycho-therapy offices in the same buildings where so called immigration lawyers reside because anyone who tries to get you to believe that firing American citizens and handing their jobs over to temporary foreign laborers will produce more jobs is one very sick individual.
H-1B and L-1 have become MASSIVE FRAUDS. As someone who lived and worked in Silicon Valley for over 16 years, I can tell you that these imported workers have TAKEN OVER IT. They will not hire anyone who is not Indian. Tata, Wipro, TCS, etc. are essentially vast organized crime syndicates. Americans are TRAINING the workers these companies bring in, the workers are taking the jobs over, then the bodyshops offshore the jobs to India with American-trained returning workers. Are you better off now than you were before the visa caps were increased into the millions in 1998? 'historical benefits'? Like what? Like creating the biggest recession in 70 years. These people are criminal racketeers, not "the best and the brightest". They are here to siphon our jobs, wealth, skills, and technology, and they are destroying the U.S. economy. Every immigration wave since 1900 to the U.S. has led to recession:
1906-1920 – Great Depression
1965 – Ted Kennedy's Immigration Act – 1973-1982 recession
1990 – H-1B started – 1991-1993 recession
1998-2000 H-1B increases – 2000-2009 recession
These are historical FACTS that cannot be denied, despite the dear professor fli-flop Fraudwha's paid-for NASSCOM/India, Inc. propaganda to the contrary.
These millions of imported workers we have brought in since 1998 have been a total disaster for Silicon Valley and for the U.S. economy.
http://www.cio.co.uk/article/527/the-next-wave-of-globalisation-offshoring-rd-to-india-and-china/
The next wave of globalisation: Offshoring R&D; to India and China
From the link:
"Entrepreneur-turned-academic Vivek Wadhwa is up front about his use of offshoring and importing foreign talent in a previous professional life as founder and CEO of two technology companies. ‘I was one of the first to outsource software development to Russia in the early ’90s. I was one of the first to use H-1B visas to bring workers to the U.S.A.,’ Wadhwa says. ‘Why did I do that? Because it was cheaper.’“
Another interesting quote:
“That tactic is even more lucrative for corporations today, says Wadhwa: ‘When you have a person on H-1B waiting for a green card, you have them captive for six to 10 years.’“
I am on H1B visa, but I don’t like it but in a different way from what Programmer’s Guild or others are advocating (which includes closet racists/white supremacists). I would like H1Bs to be freed from employer sponsorships. In fact this Visa should be eliminated altogether and a new Visa category should be created, so that if you have an employment offer from an american company you can get a work authorization (on verification of your education, prev employment experience etc.). Of course you can still have laws about prevailing wage and even if an employer brings in someone very qualified at a very low wage, the person would immediately realize it upon coming to US and would be immediately in a position to ask for more / leave the employer for a better salary. So market will actually determine the actual wages. I agree with Java Pro on the point of indentured employment.
As a follow-up to Robert, who stated:
“And, for the record, over the last ten years, despite the long wait lines for many of the foreign national employees and the high cost to employers of taking a foreign national employee from temporary, the foreign nationals are not returning in droves, as suggested in Java’s comments. They have rooted here and stay.”
This seems to contradict an InformationWeek article entitled Solving U.S. H-1B Reform Top For Indian IT Group.
From the link:
“(Nasscom president Som) Mitall’s view is that the H-1B and L-1 visa programs shouldn’t be considered matters of immigration, but rather trade policy.
“‘Our data shows that [H-1B visa holders] stay in the U.S. less than two years,’ he said. The majority does not intend to remain in the U.S. permanently, and are in the U.S. to provide a service needed by employers and their customers, he said.”
Regarding Prof. Wadhwa’s latest comment, I’m conflicted with:
1) Your statement that, “…American engineers are the best in the world. They have the best skills and education…”
and
2) Your statement, “Why should I have been excluded from hiring the best and brightest from abroad?”
While I think debating who is “best and brightest” is a bit silly, these two statements seem to contradict each other. After all, you can only have one “best” and one “brightest”. But again, silly point – I concede that much.
But something just as conflicting:
1) The statement, “Peer-reviewed studies, such as those conducted by Vivek Wadhwa, Executive in Residence, Pratt School of Engineering, Duke University, support the conclusioin that the H-1B visa programs are good for America.”
and
2) Your statement, “The H-1B program is deeply flawed. It’s lose-lose for the U.S. economy and for the technology profession…”
Let me state my position clearly – I am not advocating eliminating the H-1B visa. Indeed, I think that would be a mistake. I am merely advocating closing the loopholes in the law so as to stop the abuse that I articulated in previous posts (which seem to have not been refuted). These loopholes prevent Americans from competing with the rest of the world on an even playing field. But it seems that as soon as someone suggests closing those loopholes, there are people who scream bloody murder.
Again, I notice this concentration on the Programmers Guild. I don’t understand it. As I stated before, I am not affiliated with the Programmers Guild. Surely you must realize that there are many, many more American citizens who rely on the technology field for their livelihoods – to support themselves and their families – than what the membership of the Programmers Guild represents; many of whom are outraged with the rules and propaganda being stacked up against them.
This will be my last post. I fear that powerful people will eventually come to want to exact revenge on someone who dares challenge them. I have enough trouble supporting myself and my family, I don’t need more.
Why did I hire Russians? Because these Russians had the strong mathematics skills we needed for the products we were developing. Plus more than 50% of the revenue of my company was coming from abroad. Why should I have been excluded from hiring the best and brightest from abroad? After all, we were creating more than 10 jobs for every foreigner we hired and contributing millions to the U.S. economy in payroll taxes.
I don’t understand why are we debating closing the doors on foreigners when we are dependent on them to fuel our economy and finance our deficits. Our largest companies get the majority of their revenue from foreign markets — so why do we want to restrict their ability to hire foreigners? Is all this to protect the jobs of a few members of the Programmers Guild?
As I wrote earlier, this protectionism will lead to trade wars and cause other countries to close their doors on us. Our farmers, steel workers, mechanics, etc. will pay a heavy price for protecting jobs which really can’t be protected.
Before anything else, I’d like to make one thing clear. I am not this Roy Lawson that Prof. Wadhwa mentions, nor am I affiliated with the Programmers Guild.
Maligned? I think you’re attempting to redirect attention from the real issue – the flaws of the current H-1B visa laws. Whatever your reason, my story above isn’t about Prof. Wadhwa – it’s about the loopholes in the H-1B visa laws. Indeed, I acknowledged Prof. Wadhwa to be a pioneer in innovation in the technology field, having founded two companies.
Prof. Wadhwa states:
“The 2 examples of H1B’s who I hired…were young and bright Russian kids who had no experience in the computer languages and platforms we were developing our software on.”
He continues:
“Yes, my research and experience has shown that American engineers are the best in the world. They have the best skills and education, they understand U.S. markets and they communicate well.”
So, we’ve established that the two people hired by Prof. Wadhwa’s company via the H-1B visa, in Prof. Wadhwa’s words, “were young and bright Russian kids who had no experience in the computer languages and platforms we were developing our software on“.
We’ve also established that, “…American engineers are the best in the world. They have the best skills and education, they understand U.S. markets and they communicate well”.
This begs the question: If these H-1B visa beneficiaries had no experience in the necessary technologies, why did Prof. Wadhwa have to bring in foreign workers? Any US citizen computer science college graduate would also have been a young and bright kid who had no experience in the computer languages and platforms they were developing their software on.
This posted on behalf of Vivek Wadhwa, who was maligned above by “The Java Pro”:
I am proud of the fact that I was able to hire some of the most brilliant engineers in the world and bring them to the U.S. — where nearly all of them have risen to senior management posts, added to American innovation and created jobs for thousands of Americans. My first company employed over 1000 workers at its peak. My second company was founded based on technology built in Russia. This lead to the creation of over 150 jobs for American workers. Both of my companies contributed to the economy and made American businesses more efficient and competitive.
The 2 examples of H1B’s who I hired, that Roy Lawson of the Programmers Guild (Java Pro) cites, were young and bright Russian kids who had no experience in the computer languages and platforms we were developing our software on. I saw potential in them and brought them to the U.S. at the salary recommended by our HR department. In both cases, we increased their salaries by 50-70% per year for the first 3 years because they were truly exceptional. They left my company several years later as U.S. permanent residents making six-figure salaries. This was a win-win for everyone. My company benefited, the U.S. benefited and these wonderful human beings got a chance to share the American dream.
Yes, my research and experience has shown that American engineers are the best in the world. They have the best skills and education, they understand U.S. markets and they communicate well. These engineers don’t need to be protected from foreign competition. They can compete with anyone in the world. Yet, what the Programmers Guild is advocating is to protect the jobs of their members by raising trade barriers like what countries like Argentina did (they were ahead of the U.S. at the turn of the century and compare the U.S. to Argentina now). This group seems to believe that with the flawed protectionist policies which Senator Grassley is advocating, their members will gain new employment. The sad reality is that this is simply not going to happen. To the contrary, U.S. protectionism will encourage other countries to close their doors and stop buying American goods. This will severely hurt the U.S. economy and create unemployment in a variety of sectors. Hundreds of thousands of farm workers, steel mill workers, aircraft designers, will bear the burden of misguided attempts to save the jobs of a few thousand computer programmers.
Yes, it is true that I have been critical of the H1B program. I believe it places too many restrictions on the workers on H1B visas and this leads to distortions in salaries. The solution is to deregulate these visas as I discussed in my last BusinessWeek article — BusinessWeek: We Need Smarter, Not Fewer, H-1B Visas, and to greatly expand the numbers of permanent resident visas for skilled workers. America wasn’t build on protectionist policies, it was built on free markets and innovation. There is extensive research from top academics like Jennifer Hunt of McGill University and Bill Kerr of Harvard which shows that even in their present form, H1B visas have boosted U.S. innovation. My research has shown that skilled immigrants on permanent resident visas start a disproportionate number of technology companies – they create jobs for Americans.
Bottom line – as I concluded in my BusinessWeek article — Competition is good even when it might be scary. To put up walls that block the best and brightest from coming to America is bad policy in both the short and the long term. I’m reminded of something Klaus Kleinfeld, CEO of Alcoa and a German citizen living in the U.S., said recently. “Down through U.S. history, the competition from succeeding waves of immigrants created the force that drove Americans to excel,” Kleinfeld wrote in an e-mail. “It seems to me that the U.S. will continue to thrive as long as the best and brightest from other lands continue to contribute to America’s progress and compete for its opportunities”.
The fact that several Indian companies may be gaming the system is not a reason to kill the system by which small and large firms alike fulfill their skill needs. The solution is to put roadblocks in the way of off-shore companies that game the system, if that is what is going on. And, for the record, over the last ten years, despite the long wait lines for many of the foreign national employees and the high cost to employers of taking a foreign national employee from temporary, the foreign nationals are not returning in droves, as suggested in Java’s comments. They have rooted here and stay.
My experience with our client base is that our clients are bringing in people that our employer-clients are not able to find in the marketplace. And the employers must pay a substantial, high cost to sponsor these people – on the order of $5 000 per employee. These clients are schools, technology companies, and other specialized companies that are in need of a few persons with highly specialized skills. The schools require language skills and teachers in employment areas of the country where these persons are in short supply. They know this fact because they have advertised, although not required in the H-1b program, and have not found the persons they require, and only as a last resort, have undergone the expense and aggravation of such sponsorship. The technology firms likewise require persons with specialized programming and software, as well as biotechnology, for which they are not finding U.S. students/employees. Much of that is a result of the fact that the market does work. The relative few (compared to other areas of the world) available U.S. graduates are quickly taken by large companies that pay premium salaries. Smaller companies have trouble competing, which is a real problem because most of the innovations, and the job creation, is coming out of smaller companies in our economy, companies under 100 employees.
Concerning depressing the salaries, our experience has been to the contrary, that because prevailing or employer’s actual wage (the higher of the alternatives) is the standard required for our H-1b clients under the immigration laws, our clients are continually under pressure to push the salaries upwards, and this, even before paying the high cost of bringing in a foreign national – large CIS filing fees and high cost of the legal work. You sound like a paid DC lobbyist. If you position is so solid, you need to engage in a real debate with AILA in the context of a public, televised forum, where each party has the opportunity to make a case and respond to the opposition, under real debate rules (not the made-for-television format found in “presidential debates,” which never really air our issues.
“Hizzonerrf@gmail.com”
Hey Java Pro–Time to wake up and smell the roses.
You want studies–read this: http://www.htmljobsite.com/Articles/i/ad4201/blogs/Foreign-IT-Pros-Working-In-US-Earning-More-Than-Americans-.htmm. There are plenty of other studies that say exactly that. How is it possible to underpay someone who is being paid MORE than U.S. Workers?
As for Vivek Wadwha, I will allow him to defend himself. But your comment about the open market is hilarious–Of course this an open market. H-1B visa holders can port to a new employer whenever they want, AND, frequently do. Futher, if Vivek was able to successfully hire this terrific candidate, then it also logically means that someone else could have too. Clearly this candidate CHOSE Vivek’s company. Your argument lacks logic–Aristotle would not be happy.
Java Pro you attack a program you do not understand. Are you with the “Programmers Guild?”
Sorry for the double post.
I find your confrontational tone amusing.
Regarding the issue of wages and who gets paid more, I found these:
H-1B visa holders paid less than Americans http://timesofindia.indiatimes.com/articleshow/1967955.cms
From the link:
Tata Consultancy Services (TCS) vice president Phiroz Vandrevala even admitted that his company enjoys a competitive advantage because of its extensive use of foreign workers in the United States on H-1B and L-1 visas, according to the study by IEEE-USA, a unit of the Institute of Electrical and Electronics Engineers, Inc.
“Our wage per employee is 20-25 per cent less than US wages for a similar employee,” Vandrevala said.
“Typically, for a TCS employee with five years experience, the annual cost to the company is $60,000-70,000, while a local American employee might cost $80,000-100,000.
“This (labour arbitrage) is a fact of doing work onsite. It’s a fact that Indian IT companies have an advantage here and there’s nothing wrong in that. The issue is that of getting workers in the US on wages far lower than the local wage rate.”
H-1B visa holders get paid less than Americans http://www.dnaindia.com/report.asp?NewsID=1051857
From the link:
A new report published on Thursday by the Institute of Electrical and Electronics Engineers, USA, a Washington-based public policy body, says that, “Immigrant engineers with H-1B visas may be earning up to 23 per cent less on average than American engineers with similar jobs.” It adds, “On an average, applications for H-1B workers in computer occupations were for wages $13,000 less than Americans in the same occupation and state.”Regarding the ability for foreign worker H-1B beneficiaries to transfer to new employers, most H-1Bs will not be able to take much advantage of this, since the problem still remains that their Green Card processing would have to begin from scratch again, something most H-1Bs would consider unthinkable if they have already put in a couple of years toward a Green Card under their present employer.
Oh, and by the way, foreigners who come to the US via the H-1B visa are NOT immigrants. They are guest workers. From the Web site of the United States Department of Labor:
The H-1B program allows an employer to temporarily employ a foreign worker in the U.S. on a nonimmigrant basis in a specialty occupation or as a fashion model of distinguished merit and ability.
"The most recent attacks are based either on junk science or no science at all."
And what science do you provide?
"We were critical of this 'plan' (and the Grassley-Durbin legislative proposal) because both the plan and the legislation are without merit and based on a lack of understanding of how our current employment based non-immigrant and immigration system currently works, what motivates employers to use the H-1B and L-1programs, and the tremendous historic and future benefits of these program."
Tremendous future benefits? The H-1B visa is being used to help siphon jobs offshore. As BusinessWeek's article, Indian Firms, Microsoft Top H-1B List (http://www.businessweek.com/technology/content/feb2009/tc20090223_946195.htm) indicates:
"Four India-based companies topped the list [of H-1B visa recipients]: Infosys Technologies (INFY) was the top recipient on the USCIS list, receiving approval for 4,559 visas—the same number it received in 2007. Next was Wipro (WIT) which received approval for 2,678 H-1B visas in 2008, up from 2,567 in 2007. Third on the list was Satyam (SAY), which remains embroiled in a scandal where the company's chairman admitted to inflating its earnings. The company got approval for 1,917 H-1B visas in 2008, significantly more from the 1,396 it received in 2007. Tata (TCS.BO) came in fourth with approval for 1,539 visas last year, nearly double the 797 it got in 2007…In fiscal year 2007, six of the top 10 visa recipients were based in India; two others among the top 10, Cognizant Technology Solutions (CTSH) and UST Global, are headquartered in the U.S. but have most of their operations in India."
Does it not stand to reason that since most of the top 10 companies using H-1B visa workers – companies whose entire business model relies on using workers in low-cost countries such as India – does it not stand to reason that the H-1B visa is being used to offshore work? The H-1B visa comes, learns the job/business from US citizens, then takes that information back to their country where the job is performed. Poof – job gone from US.
Moreover, according to an InformationWeek article (http://www.informationweek.com/news/global-cio/showArticle.jhtml?articleID=199600503):
"About 99% of TCS's H-1B workers return to India, rather than seek green cards, or permanent residency, to stay in the U.S., said Padmanabhan." (S. Padmanabhan, TCS executive VP and head of global HR)
And I'm sure the same is true for the other foreign outsourcing companies operating in the US (e.g., Infosys, Satyam, Wipro).
How is this a "tremendous benefit"?
Your exceptional Business Immigration Committee, in its "substantive" response to Professor Marshall stated,
"And you might be surprised to learn that most economists who have studied these provisions disagree with you that H-1B professionals are hurting the American economy and the American worker."
Most economists? Please provide a reference to the source on which you base that statement.
The response to Prof. Marshall continues:
"Rather, the vast majority of economists and business leaders who have looked at this issue, including Alan Greenspan, Jagdish Bhagwati, Nobel prize winning economist Gary Becker, Jack Welch, Michael Bloomberg, and Bill Gates are convinced that H-1B professionals (they’re not “guest workers” and they’re hardly “indentured” as you refer to them) have increased employment opportunities for all Americans, and their creativity and knowledge have furthered our national interest."
Regarding the use of the term "indentured", the definition of the word is "to bind into the service of another by indenture". As long as an employer holds the H-1B visa, the foreign worker cannot freely change jobs if he is unhappy with that employer. The foreign worker has no bargaining power over his wages. The foreign worker is reliant on his employer for his Green Card. Therefore, the term "indentured" is appropriate. If the law is changed so that the foreign worker holds his H-1B visa and is allowed to change employers at-will, the term "indentured" will no longer apply.
I'd like to offer a little anecdote regarding employers' ability to exploit foreign workers:
A gentleman named Vivek Wadhwa has long been a pioneer of change and innovation in the technology industry, and has founded 2 software companies, Seer Technologies and Relativity Technologies.
A check of the Dept. of Labor's H-1B Web page shows that Wahdwa's firm, Relativity Technologies, hired an H-1B Software Engineer for $44,144, and a Computer Programmer for $31,933.
Wahdwa believes that his hiring of the two H-1B programmers was justified on the grounds that they are brilliant people.
There is, however, the issue of how much to pay them. The one making $44K had a Master's degree and had been working part-time for Wadhwa in Russia for the previous three years. Moreover, at the time Wadhwa hired this worker, the guy had been working for a Russian government joint venture company in Russia, developing telephone and networking systems, which is sophisticated work. And yet as an H-1B he was being paid less than a Bachelor's graduate with no experience.
The reader's reaction to all this is probably, "Well, THAT must be illegal. The salary Wadhwa paid this H-1B didn't take into account the worker's Master's degree and his work experience." But that is a perfect example of the myriad loopholes in the law.
The key point is that under the law, prevailing wage is defined by the JOB, not by the WORKER. If the job just requires a Bachelor's degree, then an H-1B with a Master's can legally be paid a Bachelor's-level wage. What about this worker's experience? Doesn't that have to be taken into account? Well, first of all, the experience level DOL used at the time lumped everyone with 0-2 years of experience into one category, and this worker with three years of part-time and one year of full-time experience might fall into that category. But beyond that, again, keep in mind the prevailing wage is defined by the JOB, not by the WORKER. If this was an entry-level job, then the guy could legally be paid an entry-level salary.
Last but not least, what about the fact that the guy is supposedly brilliant? The guy got his Master's degree at the age of 16! (He was only 17 at the time Wahdwa hired him.) On the open market, that would command a premium salary. But remember, this ain't the open market. And there is nothing in the prevailing wage law about factoring in brilliance.
So, the bottom line is that Wadhwa got a brilliant worker with a Master's degree and the equivalent of something like two years of experience for the price of a Bachelor's graduate of average talent and no experience. And don't forget, that isn't even accounting wage savings an employer accrues by hiring H-1Bs–by hiring young H-1Bs, he avoids hiring the older, thus more expensive, Americans.
In other words, any way you slice it, Wadhwa got a great bargain–one that would have been impossible on the open market.
Therefore, H-1B visa workers are "indentured". And perhaps after reading the above anecdote, you will understand why the opinions of Bill Gates and Jack Welch are hardly unbiased.
"Peer-reviewed studies, such as those conducted by Vivek Wadhwa, Executive in Residence, Pratt School of Engineering, Duke University, support the conclusion that the H-1B visa programs are good for America."
I cannot reconcile the Wadhwa studies you mentioned with some of his writings in BusinessWeek, InformationWeek and other publications:
http://www.informationweek.com/sh
ared/printableArticleSrc.jhtml?articleID=201000479
From the link:
"The H-1B program is deeply flawed. It's lose-lose for the U.S. economy and for the technology profession, and lose-lose for the H-1B workers themselves"
The article further says:
"He also surveyed employers to see how long it was taking them to fill open engineering positions with U.S. workers. His conclusion: Although other countries, particularly China, are surging ahead of the United States in graduating engineers with advanced degrees — and that trend should be taken very seriously — there's no indication of a shortage of engineers in the United States."
"A couple of other important points you failed to note: H-1B professionals aren’t just computer scientists. They are also physicists, mathematicians, financial analysts, lawyers, economists, teachers, physicians serving in health professional shortage areas, and, like you, professors at virtually all American colleges and universities."
It is understandable why one would focus on computer-related occupations when speaking of the H-1B visa. According to the US Citizenship and Immigration Services, H-1B petitions approved by major occupation group in FY 2005:
Computer-Related 43.0%
Architecture, Engineering and Surveying 12.1%
Education 11.0%
Administrative 9.8%
Medicine & Health 6.6%
Managers & Officials 4.0%
Life Sciences 3.3%
Mathematics and Physical Sciences 2.5%
Social Sciences 2.3%
Professional, Technical & Managerial (misc) 2.1%
Art 1.4%
Law 0.7%
Writing 0.6%
Entertainment & Recreation 0.3%
Fashion Models 0.2%
Museum, Library, & Archival Sciences 0.1%
Religion & Theology 0.1%
"These studies will continue to come because business and academia understand the importance of these visa categories, and the need to vocally oppose these anti-immigrationists."
Yes, business understands that they can legally under-pay their H-1B foreign workers (as demonstrated by the aforementioned anecdote) and academia understands that their enrollments jump.