Temporary Visas, Meant to Import Talent, Help Ship Jobs Abroad
nytimes.com
nytimes.com
This is a common misconception. The H1B visa laws are generally used to hire very low wage workers. (I doubt the authors of the legislation are surprised by this result.)
Companies are required to pay a prevailing wage, but this wage can be one of four levels. And of course most H1B applications are for the lowest levels.
Here are levels for software developers in Chicago [1]:
Software Developers, Applications
Chicago-Naperville-Joliet, IL Metropolitan Division
Level 1 Wage:$24.45 hour - $50,856 year
Level 2 Wage:$33.14 hour - $68,931 year
Level 3 Wage:$41.84 hour - $87,027 year
Level 4 Wage:$50.53 hour - $105,102 year
For context the 25th percentile wage in Chicago is $68,670 and average is $88,630.Of course, more ambitious companies may file applications under job titles with even lower wage levels like "system analysts".
You should also know that if a H1B worker is fired, he and his family are out of status that day and must leave the country unless a visitor visa is granted (which is not guaranteed).
How would you like working here if you could be fired and your whole family could be sent packing at will?
If you were an employer, do you think you could you hack this system to your advantage? I'm pretty sure I could.
The ideal solution which has been proposed by several people, but will probably never see the light of day in legislation due to entrenched lobbying interests is very simple – separate the visa from the employer. If an employer sponsors an H1B once, that person should be automatically be free to work for any company he/she pleases for six years. This will make H1Bs more of a realistic "high skill level" visa and less of a captive labor pool for the industry.
EB2 visas for permanent residence are currently available [1] for employees with Ph.D., master's degree, or at least five years of progressive post-baccalaureate experience.
[1] Excluding people born in India, Mainland China, Mexico and the Philippines because applicants from those countries have exceeded the per country maximum
Granted, the H1B process is slow too.
1) The visa holder has no obligation to the company whatsoever as soon as the visa is approved. If the only thing keeping an employee at the company is the threat of deportation then maybe the company shouldn't be employing people at all.
2) The company can not extract any fees whatsoever from the employee, not even for training or relocation. The employee is not obligated to pay anything to the employer under any circumstances, even if he immediately leaves the job.
3) The Visa program is a reverse auction on salary, down to, say, 150% of the median wage for the NAICS code. The auction ends when the cap or the salary limit is reached.
4) The company must hold the first year of salary in escrow and forfeit any unpaid salary to the government if the employee leaves early. This is to prevent hiring an employee and then firing and rehiring immediately after the visa is approved at a lower salary.
Of course you're right that no real reform will happen, because as far as the Zuckerberg/fwd.us crowd is concerned, the only problem with the current system is that the cap is too low.
(edited to include links)
[1] http://www.dhs.gov/sites/default/files/publications/14_1120_...
[2] http://www.natlawreview.com/article/regrettable-and-sudden-d...
And the police had powers to deport --double the fun (meaning you had to have papers)
That said, I don't think progressives who propose easing immigration from poor countries would allow competition for "high-skilled" jobs like doctors, engineers, lawyers because it would suffer pressure from professional pushback.
Why should Americans make more money than Indians for the same work? What is so intrinsically great about Americans that I should pay more for an American to do my accounting than an Indian and why am I wrong if I don't do that?
Edit:
> The 36-year-old accountant said the young Indian assigned to shadow her appeared to have no extraordinary knowledge of accounting. His expertise was in observing and mapping what she did.
> At the close of business, the recording was transmitted to India, where workers practiced mimicking his tasks.
If this is possible you don't have a real job and the Indian will be shortly be replaced in turn by a piece of software.
Long ago when I was in digital medical imaging we observed radiologists reading X-rays and figured we could make many times our engineer wages by just saying "Normal chest" and pressing the "advance" button. We'd be right almost all the time!
If a company wants to offshore jobs out the country, they shouldn't be helped by our own government to do it.
Consider that as a result of 70 people at Toys 'R' Us losing their jobs, toys became marginally cheaper for hundreds of millions of Americans.
Edit: not to mention the majority owners of Toys 'R' Us realizing the part of the savings that aren't passed on to consumers are undoubtedly American investors and pension plans.
I think if you hold such a radical agenda, you should be up front about it, rather than arguing by analogy to topics people want to distance themselves from. You're advocating the dissolution of nation-states in the conventional sense. This is a fine thing to advocate for, but one certainly isn't a racist for not supporting this particular radical agenda that you happen to have.
Are you also a communist, or at the very least, do you believe that inheritance should be abolished? After all, inheritance is a literal lottery of birth in the same way race is.
And finally, as someone who is posting on the Internet, you have either won the lottery of birth in a direct way, or been blessed with enough intelligence to overcome suboptimal birth conditions and thus have won the lottery of birth in a more indirect way. What are you doing to address the harm your privileged position does to the world? Do you live a life of poverty and give all your money to Waatsi?
Nationalism is stupid. What's so radical about feeling I have more in common with an Indian engineering student than a white American factory worker?
I'm not a saint and I'm not simply going to give all of my money away, whether I deserve it or not. However, I'm not going to whine about foreigners stealing my jerbs either. If it's so easy for someone half the world away to steal my job I didn't deserve it in the first place.
When outsourcing was a big hot-button topic back around THE TURN OF THE CENTURY (just realized we can say this now and get away with it, seems weird) there was a lot of talk about how the low-value "coder" jobs would go overseas while we here in the US would just do high level design and software architecture to ship to these people to implement....
That's great for one generation, but how do people become great designers and architects without being a working "coder" for a while? Doesn't happen, in my experience (or, rather happens so infrequently the exceptions aren't worth considering).
By removing today's low-end industry jobs we risk eliminating the path of real-world experience that makes people qualified for the higher-end work, thereby making us (as a country/culture/whatever) unqualified to do the high-end stuff in the not-too-distant future.
A lot of companies are very bad at thinking about that kind of long-term progression. My dad works in a power plant, where essentially he and the millwright are the only two who understand how all of the systems in the plant work, since they are the only members of the maintenance staff that have been there long enough to have repaired all of the equipment (longer than the current management...) Both of them are looking to retire in the next couple years, and made that known some time ago. Rather than hire full-time staff to train and learn the plant in preparation for that handoff, the company contracts out (more expensive) temporary workers...
Destroying the middle class to improve margins does not grow the real economy. You grow the real economy by investing in technology and an educated workforce that can translate their skill set to providing real goods and services.
Majority owners, investors and pension plan managers need to invest their money in companies that have real customers with real incomes that can afford to buy their goods and services.
Similarly, if I don't threaten people with violence for watching "Real Housewives of New Jersey", that doesn't mean I'm facilitating people watching it.
Don't forget that a "job" is not a good thing. It's a bad thing. People don't like working, they mostly want money, at least for menial jobs. The whole idea of silicon valley is to take people's menial jobs. That's what it's there for! Should the government hinder technology companies because they're threatening to replace people's jobs with computers? Of course not! In the case of both technology and cheaper foreign workers, the overall result is positive to the US economy.
If you think Americans are more deserving than other people, then, well that's just the nationalism and racism that the GP described. You can pretend it's not racism, but it's effectively the same thing - treating people worse because of who their parents are.
I do too. There are two Indian families in my apartment complex who have a breadwinner here on a work visa. I like them and their kids are my son's best friends. I don't see them as the problem here.
> Why should Americans make more money than Indians for the same work?
I don't know about you, but I probably pay more for rent and a lot of other things here in the States than a corresponding tech worker in India does.
I don't think that makes me better than someone in India, but it does mean that the almighty Free Market is certainly not my friend. If we could lower my expenses to the levels you see in India then I think I'd be okay with the Free Market.
Updated: clarification.
Your idea that Indians (or perhaps Chinese) should be the only ones coming in sounds a bit racist to my ears actually. Why should it be Indians coming in, when so many Syrians are fleeing their homes, much due to the US invasion of Iraq (and undermining of Assad - so that now ISIS runs much of Syria).
I don't see how India providing its citizens with free IIT educations, only to be brought to the US and work like coolies, chained to an H1-B visa, is some wonderful thing. We should be giving out citizenship, and that's it, the foreign worker programs are only used to screw over American workers.
You have this racist attitude of wanting Indians, and excluding Syrians etc. You want them chained them chained as coolies to H1-B visas to exploit them. Then you accuse anyone opposed to your scheme to exploit people for a buck "racist" like you're some kind of humanitarian.
I only mentioned Indians because the article was about Indians.
> We should be giving out citizenship, and that's it, the foreign worker programs are only used to screw over American workers.
Or the US could have work visas that aren't so closely linked to a specific employer. I agree the H1-B terms as they are now are ridiculous and exploitative.
What about the success that was siphoned off from Indians due to centuries of colonialism by European powers?
Our ancestors built this nation. We current citizens are their heirs. Whatever benefits there are to having been born here, those benefits should accrue only to citizens.
America is ours, we and our ancestors built it. If there are any benefits to living here, they belong to us, and not to foregners. Likewise, my nice house belongs to me and not to you, despite the fact that it was purchased with money willed to me by my parents.
you shouldn't.
The idea of personal property is completely off the topic. Of course your house is yours, but it's not automatically your children's when you die. That's a choice you're free to make.
As for "we built America". You mean "People of Earth built America" It wasn't done in isolation. It depended on international trade and influx of valuable workers from other countries. You could equally argue that America belongs to Italians because there lots of Italian people helped build it.
America is and was built by immigrants who have (had?) little more in common with you than the Indians in the story. Basically nothing really, except a common geographic area and some shared ideals.
That's to say nation states are selfish and are at the service of its people. That's how we've got things set up. That's why Bangladeshis aren't allowed to work in India, or why any state adopts tariffs, etc. All selfish self interest. That is why.
It's also not racist, unless you use the old definition of race meaning nationality. If these were going to the English or to the Russians, you'd see similar backlash.
This is actually possible for a LOT of jobs that Americans do, modulo edge cases. Most of what nurse practitioners do, for instance, can very easily be replicated by a random forest. Try telling the nurse practitioners they don't have a real job. Hell, by that metric, most of crud isn't a real job either. In fact, the whole point of "work experience" is that the newhire with zero work experience mimics the more experienced worker until he passes the Turing test ie. the Boss, given the work output, can no longer distinguish if the work was performed by the newhire or the oldhand. Its turtles/strike/mimicry all the way down.
Here's the thing. Not everyone in this country can be a CEO. The WALL-E premise of everyone living the fat life (pun intended) while the robots do the work is not viable. The truth is that this country is made up of people with a broad spectrum of capabilities and talents. Furthermore, these people are not fungible resources that can easily relocate to whatever third world country that has now usurped their former job functions. We have already seen large parts of this country's population essentially permanently displaced with the mass outsourcing of manufacturing. These were good paying, stable blue-collar jobs that people who were not born to be CEOs could rely on, live a good life, and raise families. Now look at the former manufacturing cities. They did not all magically retrain to be knowledge workers. Instead, entire communities were laid to waste. Now extend what happened to manufacturing to skilled labor under your "every job to the cheapest bidder" philosophy. What happens? Maybe plastic crap at Toys-R-Us is 3 cents cheaper. But eventually a large enough percentage of this country is displaced to where society itself becomes unstable. When this destabilization eats away at enough of foundations of our society, even the wealthy will be affected.
Government's job is (supposed to be) to take the longview on what is good for a healthy American society, not to facilitate multi-national corporations in their quest to cut every cost they can.
Jobs are a mean to create wealth (and by extensions, welfare) for a society. I don't understand the reason for trying to reduce the wealth being created in some notion of keep "jobs", and if the inland American economy can not generate enough wealth for some reasons, then we have bigger problems to deal with.
Essentially, this is a wealth redistribution issue, and should be treated as such, focusing on creating "jobs" seems to be the wrong idea to go at it.
The globalization that allows the wealthy to eliminate their first-world workforce also allows them to avoid just about any tax they don't feel like paying.
I'm not saying that everything is fine and dandy, I'm saying that pointing finger to random chicken in the sky and shoot them won't solve the real issue. There are a lot of problems, but American politics right now is a bit engrossed in the wrong kind of trivialities.
Where did you get that from? The wealthiest 1% of Americans alone pay 50% of the federal income tax. The bottom 80% pay only 15%.
Edit: at a 50% marginal tax rate if the 1% get 60% richer through this kind of automation and offshoring, we could lower the tax rate on the bottom 80% to zero!
Edit #2: If the 1% get 120% richer, we could start handing out checks to everyone in the bottom 80% equal to what they're paying in taxes today! See where I'm going with this?
You're confusing wealth with income.
If MegaRoboCo Inc. and their contemporaries are making $1 trillion a year each in 2050, the tax revenues (corporate, capital gains, income on dividends, income on executive compensation, whatever) can be enough to support the resulting mass unemployment.
I.e. if a sector of the labor economy is discriminated against, do you say, well, let's fix that issue with government subsidies/negative taxes? If women get paid 80 on the dollar, we make the government make up the rest rather than legislate that companies to pay justly?
Anyway, the government already subsidized certain demographics, for one way or another (various types of welfare, and the population also support a bunch of subsidize that doesn't exists right now: parental leave comes to mind). In essence, it's not a question of "do" or "do not", it's just matter of deciding where to draw the line.
Another distinction is that not all discrimination and welfare discussion is about economic, a lot of policies have to do with moral, ethics and general humanity. With those constraints in mind, the consideration change a lot. The original argument I was replying to was purely economic. If you want to make a moral argument of "people need job to have self actualization and feel good about themselves", then it's not a common argument around here, and certainly worth considering, but completely different.
The example you brought up with women being paid 80 cent on the dollar is a whole can of worm that I'm not willing to open right now. Let's just put it simply that I think that specific issue is more complicated and one of the biggest difference is that it has more than just straight up economic consideration.
Nested in the available data are several records for "Associate Data Scientist" and "Senior Data Scientist", meaning that the employer advertised the job as a role with this name.
(By the way, these visas were APPROVED!)
They then have listed as the category for the visa job role "Operations Research Analysts" for the Associate, and then "Computer Occupations, All Other" for the Senior Data Scientist role. Interesting how two jobs which sound very similar have completely different classifications for the same company, huh?
The best part: The prevailing wage listed for the "Associate Data Scientist" is $48,901 and the "Senior Data Scientist" is $61,110, because those wages are dictated by the bucket they are placed in.
The actual wages which were payed for these roles was $80k and $70K, respectively.
These rates are so far below market value it's ridiculous.
The point is that the law is supposed to be in place so that companies can get workers when Americans aren't available, but the reality is that they simply allow companies to refuse to pay the market rate.
The employer in question is Walmart, in case you are wondering.
Or chef, or plumber, or auto mechanic, or teacher, or construction worker, ...
Don't worry, we haven't run out of things that people do better than machines yet!
Because America is not India. All those American workers have bills to pay in America, where the bills are higher the same way their wages are higher.
Of course they are, because the standard of living is much higher in America. If you prefer, I can rephrase the question as "Why should Americans enjoy a higher standard of living than Indians doing the same work?"
"The free market" is neither (A) a natural state between different nations with different legal codes nor (B) intrinsically moral.
I'm more interested in your views on "to maintain its lead over poor foreigners"
Create a new visa class then for students and entrepreneurs who come here and get their advanced degrees. Universities and talent out of those universities is what builds this great nation.
edit: I personally hate consulting companies from India because they get employees with a lot of experience and pay them peanuts. Even a new college graduate would not accept a job offer for their salary.
"When Congress designed temporary work visa programs, the idea was to bring in foreigners with specialized, hard-to-find skills who would help American companies grow, creating jobs to expand the economy. Now, though, some companies are bringing in workers on those visas to help move jobs out of the country."
I think this quote represents what congress claimed to be doing, but instead were just obeying their corporate masters and knew full well that the program would be used to erode the us workforce and workers rights in order to enrich large corporations.
I don't expect journalistic institutions to agree with me but I do expect them to call out politicians far more than they are, and to question their motives with poorly thought laws like this one.
As well local inflation + foreign deflation will change this, it will probably fix itself due to the crazy printing of money in the US. Eventually, a $100k a year employee will just be subsistence in terms of real goods.
In a certain popular city in the US that starts with S, that is not far from truth right now.
Even spending $3k/mo on rent leaves you with $3k to spend on everything else. $3k/mo after taxes is like a $50k/yr salary. If you can live in Nebraska on $50k/yr, then you can live BETTER in SF on $100k/yr.
The SF tech crowd that can't get by on $100k need a lesson in managing money.
Secondly. The marginal price on a room is about $1000 so if you perchance want to have a family then you're looking at more like $4k- $4500 for your rent. Everything is more expensive in SF as well, not just your rent.
My bias is that I do not consider it a healthy society if a couple couldnt have a family of 2 (roughly replacement) on 1-1.5 incomes (some blend of parents have some time off to raise the kids) .
End result: $6k a month after taxes (roughly $110k before) is enough such that you still have to make sacrifices, either live far away (1 hr commute each way), live in a terrible place (tenderloin), have roommates or give up on a family.
Your post solidifies my point. Saving that much money in the midwest would be difficult on $50k/yr, but doing so on $100k in SF requires a little self-control.
(I believe we reached this point some time ago)
In a post-scarcity world, I don't think the problem of insufficient meaningful work is likely to occur. There will always be a kitten to be played with, art to be made, research to be performed, and more.
I agree, but that's actually a good thing. How do you get more than someone else if everything is made for free by machines? New jobs would have to appear that produce handmade expensive goods and services that the rich can use to distinguish themselves from the poor :)
We're living in a lite version of that utopian world today, actually. It's pretty damn cheap to live in Canada or the US if you don't buy anything but food, water, and shelter. You'll find that most of your dollars today are spent on luxurious crap to improve your standing versus other people (new cars, rent in a fashionable urban center, new clothes, etc.)
In many socialist countries welfare is good enough that you can live quite healthy without ever working at all!
But we've always found new things to work on and purchase and we will continue to do so. They'll just be more meaningful than the repetitive crap most people have to do to eke out a living today.
Well, this is a prime example of why our trajectory is not converging to utopia. 'Things' are cheap, yet income inequality is extremely high in the countries. 'Things' will always come at a cost. Those who profit in the absence of labor will be a small subset of the population. The land owners, the farmers, those with political control. Sound familiar?
Welfare may be good enough in socialist democratic countries to live in relative comfort, but that is being subsidized by those who work (and I agree with this strategy). The assumption you are making is that if labor were removed from the equation, these countries would continue to exist as they are. I disagree with this premise.
We have always found new things to work on. But at the same time, jobs have become more monotonous as they are minified. The rate of automation is exponential, which hasn't been seen before. The assumption that we will all move into knowledge work is a poor assumption. Bob the builder wants to use his hands, not his brain. And good on him for being him.
Instead of H1B, we should update our immigration laws and policies to prefer educated people of means who have a desire to come here and contribute to our country.
And why not? The offshoring of work reduces the cost of goods and services and frees American time up to do meaningful, better compensated work instead.
The eventual conclusion (perhaps even in our lifetime) of automation and offshoring will be that Americans will not have to work for the necessities of life at all, just for self-actualization and luxuries.
And what if she gets retrained and into another job? Why, isn't the best thing that could happen is that she should lose that one, too, helped by our good friends running H1B?
In general, in a free capitalist market the government probably shouldn't be subsidizing corporations in any way.
In real life, governments need to negotiate with corporations, because individual politicians need corporate sponsors to finance their campaigns, so they sell their influence.
It would not collectively lower wages across the board, it would leave many completely unemployed and the rest earning double or triple or fifty times what they're making now in real terms.
The solution is a basic income so those that are unemployed don't suffer for it and have a long runway to work on art, hobbies, retrain, etc.
What I think has happened here is that the government got out a bullhorn, pointed it overseas, and said "if you study engineering or computer science, we will give you a path toward citizenship and/or residency in a lucrative market through specialized tech visas that will not be available to general would-be immigrants." It then turned around with that bullhorn toward the United States and said "if you go to law, medical, dentistry, or even nursing school, we will protect your jobs through government backed professional associations and unions, and even in the absence of special protections, most fields and trades will require existing right to live and work in the US. Oh, and also, there's a shortage of Americans going into STEM."
Here's the thing, if make it much easier, through regulation, for immigrants or foreign consulting companies to enter the tech market than the legal, medical, or other markets, you should understand you've created an incentive for foreign workers and companies to focus on tech, and US citizens to avoid it.
Think of it this way - lemons and avocados are grown in similar conditions. People can't buy lemons for what they used to pay, so the government declares a shortage of lemons. From now on, lemons will be exempt from the 20% tariff that is placed on avocados, and the government will grant a temporary residency visa to any farmer who wishes to immigrate, provided he agrees to grow lemons only (if he stops growing lemons and tries to grow avocados, he will be deported).
You would expect people who already hold US residency rights to move into avocados, and away from lemons, right?
But this isn't the result of markets, it's a market response to severe distortion created by US government policy.
I think we've done something much like this in high tech and science/engineering. The "shortage" of US citizens going into these fields is a rational response to uneven government regulation.
This is why I'm ok with general immigration, but generally opposed to targeted visa programs designed to cure specific "shortages". I think that they are almost always used to suppress the wage growth that would draw people into the field and reach market equilibrium.
There is data to back this up - the RAND institute, historically a very pro-immigrant think tank, reached the conclusion that US citizens avoid Science and Engineering graduate programs because they are not competitive with the other fields that are available to high achieving students. But here's the thing, those fields are only available to people who already have citizenship!
Oh I could fill a page about how disgusting I find professional associations and unions, but it's probably off-topic here.
Every student who comes here is on H1B after they graduate. They go through a lot of pain and effort to get a permanent residency because they get stiff competition from the employees who come directly and are on the same visa status.
Only if that pursuit can be realized, which in the reality of our current world and for the workers being displaced, it usually cannot.
Is laying off Americans in a poor job market with few opportunities because most of the interesting work has been moved overseas really a judicious use of resources and talent? If it costs X amount of dollars to live in a certain area of the planet, and companies don't employ workers in that area of the planet, how can the company continue to have sales in that area over the long term?
Employers are really not all that serious about hiring. The economy really isn't in good shape when compared to before 2008. They'll hire people with very specialized skills at a bargain pay rate, but that's it.
There are two ways out of this. In the best case, the cost of living will decrease in first world countries and meet the third world counties in the middle. In the worst case, there will be war on a scale similar to World War II at the end of the Great Depression. War is a good stimulus for the economy and it puts people to work. I'm hoping for the former and not the latter.
I'm 100% sure that India could find some way to do accounting without sending people to the US for 4 weeks to learn. This is pure fear-mongering by the New York Times, probably just because of the political winds against immigration.
Thanks, I needed a good laugh.
Outsourcing is great when you have a repeatable process that isn't constantly changing. The worst possible thing is to take a project that: 1. is changing constantly 2. is new 3. you can't get your hard around
Think it is hard managing a project when it is in the same building as you? Try doing that from thousands of miles away.
I am not making this up....