Business

Report: How failed immigration reform screws American workers (in 3 visuals)

A new report published this week finds that Congress’ inability to pass immigration reform is screwing over American workers — both in terms of wages and employment.

“The hundreds of thousands of jobs — and millions more in wages — that could have been created for U.S.-born workers in the absence of the H-1B visa lotteries represent much more than just well-paid positions and professional opportunities for tens of thousands of American families,” concludes a report by a team of economists, including University of California Davis Economics Professor Giovanni Peri. The report was written for the pro-reform group, The Partnership for a New American Economy.

A representative from the AFL-CIO called the tech industry “greedy” for promoting a law allows companies to hire immigrants without a 90-day working period, but this new report shows that Americans and immigrants are not tied in a zero-sum battle.

The crux of the argument relies on the fact that the US consistently maxes out its current allotment of high-skilled visas (mostly the highly sought-after H1-Bs) in days.

Here are the results, in 3 visuals:

Cities lose out on jobs

mapscities

“Our low estimate predicts that by 2009-2010, the 2007 and 2008 H-1B visa lotteries had caused U.S. metropolitan areas to miss out on creating roughly 60,000 new jobs for U.S.-born IT workers. Our higher estimate, however, predicts that the H-1B lotteries cost city-based U.S.-born tech workers as many as 231,200 new jobs during that period—a figure more than three times higher than the actual number of new jobs created for those workers during that time frame,” explains the report.

Tech firms scale back

High skilled immigrants are associated with job growth. When immigration is scaled back, so too is the tech sector’s growth and subsequent jobs.

jobs lost

“A sudden decrease in the supply of H-1B workers would lead computer-related firms to grow more slowly in the coming years and potentially scale back their ambitions in the more immediate term… specifically, we found that every time a city experienced a 1 percent shock in the available supply of computer workers (as a result of the H-1B visa lotteries in 2007 and 2008), the growth in the number of jobs available for non-college educated, U.S.-born workers slowed as much as 7.1 percent between the 2005-2006 and 2009-2010 time periods,” concludes the report.

Wage growth slows

Job growth is often associated with wage growth, since demand also increases the need for more high paying jobs and the services those new works purchases. “Instead of growing 1.7 percent during that time, the presence of the 178,000 rejected H-1B workers would have raised wages by as much as 4.9 percent, meaning higher pay for more than a million American families,” concludes the report.

wages

No Reform Likely

Unfortunately, immigration reform has little chance this year. If immigration reform ends up dead next year, there’s a chance high-skilled reform (and more visas) could be spin-off and be passed separately. But, we don’t know how likely that is until after this year’s election.


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20 comments
John Spiegel
John Spiegel

A boy asks three different professors what 2 + 2 equals.  The Physics professor says, "Two point zero plus two point zero equals four point zero."  Math:  "Exactly two plus exactly two equals exactly four."  Statistics:  looks both ways then whispers, "What do you want it to be?"

Peri has forgotten more than I'll ever know of statistics, but there's something in his studies that smacks of building a case for what he wants to prove vs. finding out what his results prove.  Partnering with PNAE and his fairly recent study that "proved definitively" that immigration was the wonder cure by counting the number of studies that said so (including many of his own) both raise an eyebrow.

In this case, I'm having some trouble piecing together the causality of higher denials and economic downturn.  I see the premise being that cities with higher denials correlating to worse recession and recovery.  But I can't really reconcile Detroit's continued downfall/mire to this single factor.

Maybe I'm wrong.  But never finding downside to anything as multi-faceted as skilled immigration makes me leery.  Either way, all of the above figures and charts are absolutely meaningless unless the underlying assumptions are meaningful.

Steve Smith
Steve Smith

Highly educated H-1B visa holders are only a small portion of the immigration reform being debated now. For the most part, immigration reform would allow millions of uneducated, unskilled, welfare hungry illegal Mexican immigrants access to the U.S. Unlike educated H1-B visa holders these illegal result in a net loss to productivity due to their dependence on taxpayer funded programs such as welfare, Food Stamps and free education which overcrowds our schools. The title of this article should be "How Failed Immigration Reform Does Not Screw Taxpayers".

Jill Green
Jill Green

If you believe this article.Then I have some fine swamp land to sell you.

John Kling
John Kling

The Senate immigration bill massively increases immigration. The bill also provides work permits and legal status to almost every illegal in the country (even those here only 3 months at the time of the bills writing).  These illegals armed with a work permit will be able to compete for all jobs. Now they are limited generally to employers that are unconcerned about cheating. - Simply only perverted logic makes reform good for American workers.

Amber Shibley
Amber Shibley

Just because we remove the illegal immigrants, does not mean that these jobs will go to us this will just be a small part of the problem but one that needs to be dealt with.  The other problem we have are some companies are going though and having refugees do there work for them to for the same pay as they would give the illegal immigrants because to them the pay that they are getting is great.  We are just the greedy Americans that can not be happy with what we are given.  Our president is looking to hurt America with his political standing with the illegal immigrants.  We need to stop the Anchor baby policy, take care of our borders, and follow our policy on illegal immigrants. We have millions of illegal immigrants coming across our borders every year and every time we allow them to stay more will come and more will find a way to stay here until another deal is made to allow them to stay.  These illegal immigrants pose a danger to everyone involved it is a smuggling ring and this brings in prostitution, drugs and the cartels into our country.  Some of our prisons hold more criminal illegal immigrants than it does USA criminals. Some of these criminals that are illegal are very dangerous and are being held in maximum security prisons.  What they should be doing with though criminals is putting them in front of a firing squad and getting rid of them, they broke two rules the first offence was when they came into the USA illegally. 



When it is all done and said these people are going to destroy our country.  When we have illegal immigrants the restaurants do not have to raise the minimum wage because there are enough people to fill the spots but it is know fact that Americans have been having less kids and that would make the low wage paying companies to pay more because it is all about supply and demand.  In the end anyone who votes to allow the illegal immigrants to stay are not doing you or I and favors they are hurting America and they will not stop until it is to late and say we made a problem.  They are not looking out for the Americas well being they are looking for the biggest dollar and the most votes and with 1 million + people coming into America illegally I would say in the coming years they will be a bigger majority than the legal Americans.

Lorena Goins
Lorena Goins

Our borders need secured NOW! This administration is horrific! 

Charlie Seven
Charlie Seven

ILLEGAL IMMIGRATION IS NOT A VICTIMLESS CRIME

Apologists for illegal immigration like to paint it as a victimless crime. But in fact, illegal immigration causes substantial harm to American citizens and legal immigrants, particularly those in the most vulnerable sectors of our population--the poor, minorities, and children.

Illegal immigration causes an enormous drain on public funds. The seminal study of the costs of immigration by the National Academy of Sciences found that the taxes paid by immigrants do not cover the cost of services received by them. We cannot provide high quality education, health care, and retirement security for our own people if we continue to bring in endless numbers of poor, unskilled immigrants.

Additionally, job competition by waves of illegal immigrants willing to work at substandard wages and working conditions depresses the wages of American workers, hitting hardest at minority workers and those without high school degrees.

Illegal immigration also contributes to the dramatic population growth overwhelming communities across America--crowding school classrooms, consuming already limited affordable housing, and straining precious natural resources like water, energy, and forestland.

We have immigration laws for a reason. To vet out criminals, people with communicable diseases and people that have no means of support. You spit in the face of every legal immigrant when you help ILLEGALS.

Frederick Leyden
Frederick Leyden

No! And Hell No on Illegal Invasion! We don’t need this just stop them at the boarder! And that our Muslim the Buffoon Obama or any of his Pocket Congress people or any farmers or any Church congregations to help pass any immigration Laws in this Country to support any type of immigration reforms on any grounds whatsoeveror of passing any type of new Laws that our on the books. I may remind you it’s a federal issue and not a humane policy to even try to even pursue in this Country; we have the Laws for that so just follow them! So stay the hell out of it Graham, Alexander and Ellmers your out on the Next Vote! And what is this “Church and State separation all about also” the Church's also need to shout there pie hole as well on immigration and I might add that Jefferson wrote, "I contemplate with sovereign reverence that act of the whole American people which declared that their legislature should 'make no law respecting an establishment of religion, or prohibiting the free exercise thereof,' thus building a wall of separation between Church & State." And for you Boehner and Sen. Charles Schumer you’re both Nut Cases and any congregation’s just get out of Dodge!! No one is getting any free ticket from either of you two! And both of you are on the way out!And for unauthorized Aliens get them all packing across the border with a free bus Pass to wherever they came from! We don’t want them here in the States, and is not going to happen now or ever! And you Boehner Can start looking for a Job because your History !!

Well This upcoming Voting by the Citizens will be something Else!, Many of you Num Nuts in both the Houses of Congress You will be marching right out and SOON ! The Likes of all the Sens. Noted:Fienstien, Boehner, Flake , Cain, Graham, Hatch, Cornyn, Schumerand just to name a few! Best start looking for new jobs,

So now get this one thing straight You ALL!

Both Houses are in error as Law makers that our now writing any kind of laws or to Vote on, It's just circumventing all the existing Laws that are now on the Books are our unlawfully and undermining all of our existing emigration laws of this land it’s your Land not to be invaded by unauthorized Aliens, Just Call your representatives in the House and Senate and tell them how you feel.

And the Will of the people has spoken long ago, and it’s a closed case which has now worked for over a hundred years.

WE don’t give “No Golden Handshake” and or even a “Humming Bird Fart” to any foreign aliens, And our Congress that’s trying to change the Laws of this land and raise more Taxes to pay for it as well, Hell NO!

We are not going to pay for Obama-care, Medicare And pay the Fence Jumping Aliens SocialSecurity as well as their Welfare Checks and there Food Stamps and give them Gas for their Low riders cars Taco Wagon's or Dingle Berries for their Windshields !

No one! I mean NO ONE! Comes in the Back door Boehner!Without going thru the proper INS filling out of the Paper work for each person, No one Jumps the fence, No one inters without having the right documents

So return back where you came from !

Got that Amegios !

PS: And For a few Sens. like Mark Begich, Hagan, Landrieu and Prior best you find another Job before the Voters will Take you out this next election !

And for the rest of Gestapo Gang of 8 Just vote them out as well the Likes of Sens. Reid, berger, SchumerBoehner ,Polosi , McConnell and Old Prune Face Fienstien.

Please Copy this and Remember! The Names to Vote on when the time comes to make your Voice heard!

Pass this and take back America once and for all.

Just do it ! And Vote ! Independent!

Anne plutz
Anne plutz

Exactly how stupid do this librags think we citizens actually are?! Look! Remove every single illegal alien from American jobs and we gain more jobs ever than these losers proclaim continuing to flood our nation with more and more parasites would create! No thanks! Get illegals out of our country now!!!!!!! !!

Uriah Douglas
Uriah Douglas

So let me get this straight. Flooding an already over-competitive job market with low-wage workers is going to improve my standard of living?

Thomas Chenhall
Thomas Chenhall

Land of the free? Rigged still with slavery, and human beings called "illegals".

Andrey Pogodin
Andrey Pogodin

Is it only me who did not understand this article? We have a deficit of talent in Silicon Valley. Of course we are more eager to hire local candidates because they are more predictable, more sociable etc. But it is hard to find them. There is no barrier for US-born engineers to join the work force here ... as long as they are at least as good as H1bs (sorry, we are in a global economy). And entry-level salaries are high enough to motivate students to choose high tech careers. Therefore, cuts in H1b will just shrink local business without an apparent benefit for job market.

James Cunnhio
James Cunnhio

All sounds good but will bring back the dying American dream OR have they even heard of it OR do they even care?

David Francis
David Francis

President Obama and his minions by opening their BIG mouths are complicating illegal immigration enforcement with problems for the military as well; those different issues that should remain away from the mainstream press, the public and the populations of foreign countries. Broadcasting to the world, that politicians are considering Amnesty for people who have already broken the law, by entering America without registration is outrageous. It shows utmost incompetence or a conspiracy to wreak havoc on millions of jobless Americans. I have always said that it is a CONSPIRACY, not to uphold the enforcement of our borders, so that illegal aliens can slip past our unjustifiable open borders. Taxpayers are already paying financially to settle foreigners, who Vice President Joe Biden stated, “that they are already Americans” What blatant rot? It’s just utmost insanity to keep crowing about Immigration Reform or the possibility of a Path to Citizenship?

 I think it’s hard for most prudent citizens to believe, that this bloated government had overstepped the law in allowing 36,000 criminals back into our society. Additionally the voices in Congress have hollered loud enough, to preview large numbers of children from South American countries pushed ahead by their parents, knowing full well that our present President will not send them back whence they came? It’s yet another way for parents to get a toe hold around our laws, consistent with chain migration. That the U.S. taxpayer will perform for them, in that they can anticipate EBT food stamps, education for their children, Obamacare or Medicaid and low income housing. Then there are 60.000 children being allowed through our border, with more to come that we must keep them safe. Not forgetting the 46 % of tourists, who seem innocent enough until they arrive at the emergency room of hospitals ready to give birth? Sorry but only people issued a social security number should have priority, not foreign nationals that Obama has welcomed through the back door. How simple it would be, to issue every legitimate individual with a digital national ID card, which cannot be counterfeited. The cost of 2 billion dollars is meager to what is spent on public assistance. We just gave that amount of money to a country, that doesn’t even like us; compliments again of the Obama government?

To confound it all, the White House tells our enemies the date we are departing from Afghanistan. TheUS plan to bring home almost all American soldiers from Afghanistanby the end of 2016. A steady stream of lies has poured forth from his mouth, one after the other. Our Constitution has repeatedly been violated. Congress has been bypassed, ignored, run over, and browbeaten by the man and his henchman in the different government agencies. Obama has shoved this disastrous and unaffordable Obamacare on Americans and it has already cost our neighbors, friends and loved ones their jobs, even their lives. The disgrace that has been brought upon our great nation is at times too much to bear. Obama has demonstrated complete disregard for the law and We the People throughout his presidency. And now he has shown the same utter disregard and disrespect for our military. We cannot allow him to destroy these fine people who have served our country with such honor and respect.

Be assertive and don’t vote for a Republican, don’t vote for a Democrat or worse, but vote for a specific issue, such as a real two layer fence at the U.S./Mexican border and troops to support the Border Patrol officers. There have two many inconsistencies from both parties.  Join the mega-voices in the National Tea Party to Abolish the IRS that has become an ugly instrument of this administration; as we need a fair or Consumer tax that nobody can escape paying, specifically Unions, GOP special interests and corporate cronyism. Electing fresh Politicians who will vote for ending the massive spending spree and reduce the size of the government? These are just a few issues will save hundreds of billions of dollars.

Mona Rox
Mona Rox

@Anne plutz and it amazes me that someoen with a JEWISH name has the nerve to talk about immigrants! your people fled to the US and other lands when hitler was killing your people off, it was hospitality that allowed goverments to open their doors for you in a time where there was such "Economic turmoil". Dont forget the history of your people. It shocks me how much Jewish people seem to have amnesia and not remember that they were and still are indeed immigants to this country

Mona Rox
Mona Rox

@Anne plutz If it wasnt for immigrants ingenuity and slave labour..your country wouldnt be what it is today! youd ont know everyone's situation so stop talking out your tail! if we removed every illegal here..than the only people here would be the natives that you killed off to take theri land! maybe they should of asked you for papers before you stole their land

Anil Ramachandran
Anil Ramachandran

@Andrey Pogodin I don't think that's what they are saying. They are saying non-IT jobs for US born workers which would have been created by the additional H-1Bs working are being lost because of the H-1B caps. 


Yes, it is some twisted pretzel logic from the free market crowd to say that when the stated  shortage has not resulted in corresponding wage increases in the tech sector.


In the valley, sure, it might looks like they have, but not the case nationwide.

John Reagan
John Reagan

@David Francis Does this look like a bloated Federal Government? : http://www.brookings.edu/~/media/Research/Files/Blogs/2012/8/03%20jobs%20greenstone%20looney/0803_govt_ratio_chart1.jpg


And that's replicated across the spectrum. Unlike you, even though I voted GOP since Nixon until Bush Jr's 2nd term, I've kept my eyes open. The Republicans brought us the Bush Collapse and have actively pursued policies of killing off job growth, unions and the middle class..all of which are needed to become a prosperous nation again. This is the 1st time in my life I've voted straight a party ticket; Democrat. Sadly, that's what our country has forced me to become.

Ivan Smith
Ivan Smith

@Mona Rox 

Stop mixing your anti-Semitic obsession with Jews and the completely unrelated topic of immigration. This topic can influence very badly every American, irrespective of their ethnicity. Indeed, if the giant Amnesty to many millions of foreign illegal invaders (the so called "immigration reform") is adopted, this "reform" will bring here, at least, 30 million foreign workers (in reality, much more). Do we need this in the time when 20 million Americans are unemployed? Do we want that poor become still poorer, and the middle class become poor?