And I suspect that for a "brown" skinned persons the south is not exactly a welcoming environment.
Source: Lived in Dallas and Austin for 7 years.
That's very ignorant.
Maybe the "entire South" should increase their rates if they want to compete on talent. I have no sympathy for a company that can't find talent because "we don't pay SV rates because we're not in SV".
Then the "entire South" is going to start charging you and me SV rates for their products and services. Probably not what you had in mind.
Let's assume there is a $FooCorp in Alabama looking for a SysAdmin but not having much luck. They'd like to spend $70k and enter the H1B lottery under our current system. Maybe they win, maybe they lose but can hire an H1B for $80k from $OutsourcingFirm. Under an auction system, let's examine what happens instead.
$Hooli (and other SV companies) are offering $135k for SDEs. Because $135k > $70k no H1Bs can be imported as SysAdmins for $70k. This raises the cost of SysAdmin work across the country for employers. The new baseline is now somewhere above $70k which is the price it takes to attract citizens (or otherwise eligible residents) to $FooCorp.
Under an auction system, $FooCorp still needs a SysAdmin and they have 3 options:
(1) do without a SysAdmin
(2) pay more than $70K to attract an already eligible to work SysAdmin to Alabama
(3) pay more for a SysAdmin than SV pays SDEs in order to hire an H1B
Let's look at those options. If they need a SysAdmin, the first option isn't really feasible. If the role is optional, this might be a situation where they decide to do without. That means there are two options left, and the rational decision depends on what the true market value of a SysAdmin currently is. If $FooCorp can pay a citizen $100k to move to Alabama, there isn't a skills shortage. If $FooCorp can't find anyone to move to Alabama to be a SysAdmin for less than $135k, there might be a legitimate skills shortage and then the H1B program is attractive again.
It's worth noting that if $FooCorp can't find a SysAdmin for less than a SDE to move to Alabama, the true value of a SysAdmin is at least $135k (in this example). Under the current system, SysAdmins are being short-changed, both H1Bs and other eligible SysAdmins in our workforce.
There is no such thing as a skills shortage. There are only greedy employers looking to abuse a system to underpay all workers, whether they are H1Bs or otherwise authorized to work. Anyone who tells you there is a skills shortage is making money off telling you that. Don't be a sucker.
How's lottery status quo a better deal?
I'm surprised by the level of expertise, demonstrated by the economist, given the fact that current H1B system already works EXACTLY THAT WAY. H1B visa holder can transfer to a new employer any time, if new employer is willing to fill in the papers, even without notifying the current employer.
L1B visa is tied to a particular employer (because it just intracompany transfer), not H1B.
Any loophole created for this scenario would be immediately exploited by outsourcing companies headquartering themselves in the South, sponsoring H1's and then immediately arbitraging a freshly arrived employee to a Silicon Valley or NYC client.
> The employee should be able to transition to a new employer without a new visa application.
That is such a great idea that it's always been part of the H1 visa. New employer just needs to initiate an H1 transfer.