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Skilled Immigration Controversy

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The discourse on skilled immigration revolves around the controversial H-1B worker visas, the largest visa program for temporary, skilled immigration to the United States, and the level of the annual cap of such visas. Proponents pushing to raise the annual visa cap, argue that there exists a shortage of domestic labor supply in certain industries. Moreover, these workers enable firms to compete globally by raising their competitiveness, growth, and innovation. Critics of skilled immigration, however, argue that skilled immigrants are not necessarily skilled, and that the principle use of the H-1B visas is for firms to minimize their labor costs, which has the effect of undercutting native wages, and displacing native workers.
The H-1B program grants temporary work visas to workers in specialty occupations, most commonly in science, technology, engineering, and mathematics (STEM). Firms must pay substantial fees to apply for a worker, and the worker is tied to the firm for the length of their visa (the initial length being three years). Law requires that H-1B workers be paid the prevailing wage for the job in the firm or the geographic region where the person is employed as to discourage worker …show more content…

The question of whether there is a shortage of skilled labor supply cannot be accurately determined given the current visa system and the agendas of firms. Since applications of the visas are not accepted once the cap is reached, there is no exact information on the demand. Furthermore, firms could be incentivized to hire skilled immigrants to minimize costs rather than the claimed performance benefits, biasing any data collected. Whether aggregate benefits outweigh the potential losses from the crowding out of native workers and their lower wages depend on the methodologies

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