In Washington, the tendency seems to be that if an issue is considered too poisonous, it is consigned to the scrap heap of history. We have seen this with the issue of immigration reform. Under President George W. Bush, comprehensive immigration reform was attempted in 2006, but despite the House and Senate passing separate legislation, the two bills were unable to be reconciled in conference. During the election of 2008, then-Senator Barack Obama promised that he would pass immigration reform in his first term, although that proved to be a hollow promise.
The focal point in all of these debates has been the status of low-skilled immigrants from countries in Central and South America. A reform that needs to be addressed, but is lost in the process, is the status of high-skilled workers who graduate from colleges and universities in the United States, mainly in STEM (Scientific, Technical, Engineering and Management) specialties that are becoming scarcer in the U.S., and then are forced to return home, unable to acquire the necessary visas to stay in the country. Those visas are known as H-1 visas and the benefits to our society and our economy from increasing their numbers are enormous.
Because these workers tend to have advanced degrees, they are more likely than low-skilled immigrants to obtain high-salaried jobs. This means that they tend to pay more in taxes than they receive in public benefits. In 2009, the average foreign-born adult with an advanced degree paid over $22,500 in federal, state, and Federal Insurance Contributions Act (FICA, or Social Security and Medicare) taxes, while their families received benefits one-tenth that size through government transfer programs like cash welfare, unemployment benefits, and Medicaid.
High-skilled foreign workers also boost the U.S. economy by expanding production capability, increasing output per capita, and attracting foreign capital investments. The data comparing employment among the 50 states and the District of Columbia show that from 2000 to 2007, adding an additional 100 foreign-born workers in STEM fields with advanced degrees from U.S. universities creates an additional 262 jobs among U.S. citizens. Skilled immigrants are also 30% more likely to start a business than those who are native-born, which is the main driver of economic growth.
Researchers from Duke University examined new STEM-related companies founded in the decade between 1995 and 2005 and found that one-quarter had at least one immigrant founder. Skilled immigrants have historically been successful starting businesses, from Andrew Carnegie and Levi Strauss to more recent examples like Jerry Yang at Yahoo or Sergei Brin at Google.
The loss of highly-skilled workers is helping to narrow the entrepreneurship and knowledge gap between the United States and developing nations like India and China. Every year, at least 50,000 workers with advanced degrees are sent out of the U.S., although they have already passed security tests and become part of the productive fabric of the U.S. economy. In 2009, only 270,000 H-1 visas were issues, and decrease from 301,000 in 2000.
Skilled immigrants are important for keeping America’s competitive edge. Even as policymakers cannot agree on how to handle large scale immigration of low-skilled workers, it is important that legislation be undertaken to increase the flow of high-skilled workers into vital areas of innovation and growth, including computer programing, biotechnology and other high-tech fields. It makes no sense to allow immigrants to attend American universities, invest in training and teaching them and then force them to leave the country. If a student earns an advanced degree in a STEM field, they should be granted a long-term visa of five years or more to allow them to establish a job with a company and work on their field. If after that time the immigrant is still gainfully employed by a company that is willing to keep them in the company, they should be awarded a green card.
Innovation is what drives this country. Growth in other developing nations like China and India present an economic challenge that we haven’t seen in our history. To make our economy strong again and create jobs, we will have to rely not just on the strength of our citizens, but also those who strive to join our society. We must remain as welcoming and open to immigration as we have been throughout our history, or else the innovation gap that has made us the greatest economic and technological power in human history will disappear.
Photo Credit: Yodel Anecdotal
The Discussion
While I agree with all the points in your article, I still think that less-skilled workers need to be a central point in the immigration debate. It is absurd that the United States offers only 5,000 visas per year to less-skilled immigrants who work mostly construction, landscaping and hospitality. Millions of immigrants are working these professions and driving our economy and our production. The rights of these workers need to be recognized, as does our reliance upon them. It is critical that any comprehensive immigration reform responds to our nation's changing economic and labor demands and gives these workers the proper protections under the law.
Parker, thanks for getting Jerry Yang to the front page :)
I appreciate you bringing this issue to light, but found myself giving this line the wonky eye: "It makes no sense to allow immigrants to attend American universities, invest in training and teaching them and then force them to leave the country." It got the eye because this exactly what the U.S. expects from other nations' graduates to maintain its innovative/competitive edge. The labor pattern in the U.S. is unfortunately unstable , unsustainable and reliant on amassing the resources of other countries: raw materials and people power (skilled and unskilled, documented or not.)
Who takes the hit when the resources invested in 'skilled' workers are sent to the United States?
You beat me to it! I intended to write an article on the "grand old illegal immigration umbrella" that all immigrants are grouped under both skilled and unskilled... Well-written though!
I think foreigners take too much of the blame for the economic woes in the US. Years ago we were bemoaning low-skill manufacturing moving overseas. Now skilled workers coming to the US are displacing local skilled workers? How many safeguards does the American economy need to stay competitive?
Cant american enterprenuers employ these skilled, low-paid immigrants? Or can foreign entrepreneurs employ some of the millions of unemployed Americans?
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Douglas,
While there are definitely people who do take advantage of the visa process to enter the country illegally and there are also many skilled Americans, the overall problem, acknowledged by many CEO's and industry leaders is that we are still having a shortage in STEM areas. Bill Gates has been one of the most vocal advocates of increasing h-1 visas because America is not producing people who have the right skills. That is the main difference between low-skill jobs where there are plenty of Americans who can do the job but must compete against illegal immigrants, and high-skill jobs where we simply cannot fill every vacancy.
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Parker,
Your premise holds true only if the H-1 visa system is administered as required by law. The problem is it's not. H1 visas displace equally skilled workers by salary concessions. Employers must ensure that no US worker is available to fill the position. This is not enforced. H1 visa programs requires visa holders to be re-sponsored when they change jobs. This is not happening so they are then in the country illegally. This is especially true in today's economy. There are skilled US workers. What needs to be done is not increase the number of H1 visas, but a moratorium on issue of any H1 visas until US workers possessing the required skills are at a technical zero unemployment rate.
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I couldn't agree more!
Immigrants come here for college, get a great education, and then are forced to take those skills back to home, even when they would prefer to stay here. The only benefactors of our current policy are the foreign governments who receive the skilled workers without having to allow for the creation the institutions to train them.