Immigration and Jobs

A couple of thoughts about immigration. It seems that there is a widespread belief in the US that immigrants take jobs from Americans. It makes superficial sense if you also assume that the number of jobs to be filled is fixed and that just about anyone can do any kind of work.

Both assumptions are mostly false. Here is an example that illustrates why.

I keep hearing native-born Americans trained in various high-tech fields who claim that they are unemployed because of competition from low-cost H1B visa holders. H1B visas go to foreigners with skills deemed to be needed by the American economy. A large number of H1B visa holders are from India and many are from China; they also come from a wide variety of other countries, including Russia, France, Bulgaria, etc. The implicit affirmation is that were such visas stopped completely, those who complain would step right into the vacant jobs.

Two things. First the claim that foreign H1B visa holders work for less is largely unsubstantiated although it should be easy to investigate such abuse. Second, I think it’s illegal to pay H1B holders less than Americans. Why would many employers risk a distracting lawsuit? Of course, a few might because there are irrational people everywhere.

Next and last: Hundreds of thousands of high-tech jobs are going begging as I write. Are employers so vicious that they would rather have the work not done at all than to give it to a credentialed American? Or is it more likely that the unemployed native-born high-tech workers have skills that do not match demand? If the second supposition is correct, ending the H1B visa program would cause even more high-tech positions to remain empty. Of course, this would have a negative effect on everyone, on every American’s prosperity.

Missing from this narrative: the possibility that high power, accelerated re-training programs would bring unemployed Americans the skills the high-tech sector requires.

I have to begin a confession that’s going to make me even more unpopular locally than I already am. I mean unpopular among my conservative friends. I taught in an MBA program in the middle of Silicon Valley for 24 years, two quarters each year. It was an evening program squarely directed at the ambitious hard-working. During that span of time, I must have had 150 students from India. I remember only one who was a bad student. I was intrigued, so I made inquiries. Sure enough, he had an Indian first name and last name, and the corresponding appearance but he was born in the US.* I cannot report so glowingly about other, non-Indian students that sat in my classroom through the years.

This little narrative proves nothing, of course. Consider it food for thought. Do it especially if you voted for Pres. Trump – as I did.

Reminder: H1B visas are awarded to individuals with an occupational qualification deemed to be in short supply in the US. Right now, it’s likely that most of those who get an H1B are trained in some IT area but that’s not all. For a long time, farriers from everywhere could easily get one. (If you don’t know what a farrier is, shame on you and look it up.)

There are other – presumably non-specialized – categories of immigrants who are widely suspected of taking jobs from Americans. The truth is not always easy to discern, not even conceptually. Five or six miles from where I live in Santa Cruz, there are growers who are tearing off their hair. Their problem is that they can’t figure out who is going to pick the crops they are now putting into the ground. As I have said repeatedly, the Mexicans they counted on in years past have largely stopped coming.

A quarter of a mile from where I live, and in the same direction, there are dozens of perfectly healthy US-born Americans who are working as “sales associates.” The apparent conceptual issue is this: sales associates earn $10/hr while a moderately experienced crop picker earns $15. The question arises of why we don’t see a full exodus from the sales positions to jobs that pay 50% more?

I think it’s lazy to call the US-born sales associates “lazy.” The reality is that the Mexicans who came, and are still coming, to pick vegetables and fruits in California overwhelmingly came from a rural population. They were reared under conditions where almost everyone around them labored in the fields. When they arrive in the US – legally through family reunion – or illegally, they are ready to take picking jobs. They then just do here more or less the same work they would do at home but for five times the pay or more.

In American society that kind of population disappeared several generations ago through mechanization and, of course, through the importation of foreign labor, precisely. Native-born Americans won’t do the work because it’s alien to their background. I think US-born people of Mexican ascendancy whose parents labored in the field won’t do the work either. Their parents do what they can to make their own work experience alien to their children. I am not surprised, that’s another expression of the American dream. It’s  what many would do back in Mexico but then, why emigrate?

I am pretty sure that any immigration reform should include a temporary agricultural program, a sort of H1A ( “A” for “Agriculture”) visa. It would allow foreigners to come to the US legally, just to work in the fields and for a set period only. It would not lead to permanent residency, nor, of course, to citizenship. Such a program existed between the forties and the early sixties, if memory serves. It was called the “Bracero program.” I don’t know why it was terminated. (Perhaps a reader can tell us.)

Mexicans would be the first to take advantage of such a program. As Mexico’s economy develops, they may be replaced by Central Americans and, eventually, by Africans. Such a program would sidestep the kind of assimilation problem France, for example, is facing right now with its North African population.

PS Personally, I think Mexicans make good immigrants to the US. I would bet than in ten years we will be begging them to come.

* Disclosure: I am married to an Indian woman. She is not in high-tech unfortunately.


7 thoughts on “Immigration and Jobs

  1. Unfortunately anecdotes don’t pass muster. I encourage the author to do some serious research and inquiry into actual facts on immigration. Nearly every argument for immigration in this blog can be countered with very factual arguments that question whether such benefits are overstated and actually harm native workers. Dismissing complaints out of hand that immigration is harmful, showing no facts, doesn’t convince anyone except those that are already biased/inclined to be in support the immigration status quo.

    • Who here is in favor of the status quo?

      Not me. I think the US desperately needs more immigrants.

      Somehow I don’t think Will is interested in taking his own advice (“serious research”)…

    • “Nearly every argument for immigration in this blog can be countered with very factual arguments that question whether such benefits are overstated and actually harm native workers.”

      Then bring on the facts. Professor Pinnochio hasn’t done ‘serious research’ since rainbows were still black & white but he used to do some. Let’s see your chops.

  2. I think one issue you overlooked is that foreign born Indians that come here are the cream of the crop. Lesser connected Indians don’t get to come here for college. So you are comparing solid gold Indians to every day copper American students.

  3. Lisa: I agree with you. This was not intended to be an exhaustive study of anything.

    Will: I agree with you that anecdotes don’t pass muster. The anecdotal rejection of anecdotes does not pass muster either. I encourage you to do serious research. I began my little essay with the words “food for thought.” Different readers are at different levels in their analysis of immigration issues. Helping them formulate is not much but it’s not nothing. You are evidently at a higher level than my targets. My targets are usually the “intelligent ignorant.” You are not one. Please, give us some serious facts; that will make me glad.

  4. Terry: You sound like a fool even when you agree with me. (It’s not easy!)

    I haven’t done research for along time because I am not a one-trick dog. Serious research was fun for a while. I have a new avocation that does not involve research; it’s a form of teaching. I do it better than most. And it’s easy to overstate the importance of social science research anyway. After all, latrine hole diggers are convinced that their work is essential to civilization.

    You should find new insults every so often. The one you use for me makes you sound trite and past due date. It’s saddening.

Please keep it civil (unless it relates to Jacques)

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