What is usually behind this type of proclemation is that businesses feel there are not enough engineers with sought-after skills willing to work for less than the market price. Which explains Cresant's solution to the problem: increase the H-1B visa limits. The H-1B visa program allows foreigners to come to the united states temporarily and work for a company that sponsors them. The H-1B visa program is supposedly intended for situations where qualified U.S. candidates could not be found. The company has to attest that they were not able to find a qualified U.S. worker to fill the position, but have to supply no proof. The H-1B visa worker is able to stay in the U.S. up to 6 years as long as the company continues to sponsor them, or they move to another company that sponsors them.
There are several serious problems with the H-1B program. First, I've worked with at least 70 H-1B visa holders, and it has never been the case that the employer could not find a U.S. citizen to fill the position. What is very likely true is that they could not find a U.S. citizen with the skills that would work for a salary as low as the H-1B visa holder. The H-1B visa program by and large is not about filling positions where U.S. candidates could not be found. It's about pushing down U.S. wages for highly skilled workers.
Second, the H-1B visa holder is very restricted in their power to negotiate with their employer or to seek employment with another company at a better wage. The sponsoring company holds the visa over the H-1B worker's head. A U.S. worker is free to negotiate for a higher salary and benefits. If they don't feel they are getting paid what they deserve, they can also seek employment elsewhere. The market is large and very fluid. The H-1B visa worker has to worry about losing their sponsorship, and can only go to another employer if they can get the other company to sponsor them as well. For the H-1B visa holder, the U.S. market is small and not fluid. Rather than risk losing sponsorship, an H-1B visa holder will stay put even if they believe they can get significantly higher wages elsewhere.
Third, because the H-1B visa worker is only temporarily in this country, if they have a family and house, it's usually in their home country. Their costs in the U.S. usually consist of an apartment (many times shared with other co-workers) and other basic living costs such as food, utilities, etc. No mortgage, usually no car, etc. What this means is that they can earn money in the U.S. but largely avoid U.S. cost of living. This is another factor that helps keep wages from going up. Most highly skilled U.S. workers wouldn't be able to pay their bills on an H-1B visa salary.
What this all adds up to is the H-1B visa program depresses U.S. wages for highly skilled workers. You tell me, what could you add to the H-1B program to make it more effective at keeping wages down? Seems like they covered all the bases with the H-1B visa program.
One thing that is troubling is that enrollment in Science and Engineering programs by U.S. citizens is down. Science and technology is the modern engine of growth, and we're losing fuel. But Mr. Cresant's solution is precisely part of the problem. Part of the reason enrollment in Science and Engineering is down is because bright high school grads look around and don't see good prospects in Science and Engineering. They read about jobs being outsourced to other countries, U.S. workers having difficulty finding Science and Engineering jobs, the number of H-1B visas being increased, and Science and Engineering salaries are lower than comparable fields. Science and Engineering programs are tough. If you had a son or daughter that could go into Science, Engineering, Law, or Medicine, what would you recommend? Considering all of the above, I can see why many more students are opting to go into other fields.
If Cresant truly wants to address the problem of maintaining U.S. leadership in Science and Technology, he could instead propose to:
- Scale back the H-1B visa program, and put in restrictions that ensure it is truly used for those rare cases where U.S. candidates cannot be found to fill positions.
- Revamp Pre-K to 12 education where the U.S. is far behind in basic studies such as Science and Math. Freshmen in Engineering typically start with Calculus or higher, then continue taking advanced Math courses throughout their undergraduate studies. But this is impossible if the foundation hasn't been set in K-12.
- Change how Pre-K to 12 education is funded. Pre-K to 12 education is largely funded from local real estate taxes. This causes large disparities in school budgets, in particular in large metro areas such as Chicago. Schools in lower income inner city districts are overcrowded and can't pay for books while schools in wealthy suburban districts are able to offer every resource to their students. When it comes to education, everyone in the U.S. should have an equal opportunity. Funding isn't the only factor in making an effective school, but it's a big one.
- Greatly increase Pell grants and other programs to make it possible for more bright students with limited means to study in the best U.S. schools.
- Increase the number of student visas and immigrant visas that are given out each year. In particular, target immigrants studying or working in Science and Technology fields. If people with these skillsets wish to make the U.S. their home, we should do everything we can to make it possible. Unlike H-1B visa holders, immigrants with permanent residency (green cards) can negotiate, change jobs, and need not fear their employer taking away their visa.
- Fix healthcare in the U.S. Healthcare in the U.S. is largely employer-funded, and the U.S. has the highest health care costs in the world. That is why healthcare is one of the factors that make U.S. workers more expensive to employers than workers in other countries. Imagine how much more attractive it would be to IBM to locate jobs in the U.S. if the healthcare system were much more cost effective and if healthcare was paid for by the government.
- Send a message to your lawmakers via this form.
- Write your local newspaper and local TV news. Raise these points and encourage them to cover it.
- Have something else people can do? Write it in a comment to this blog.
3 comments:
I disagree with the H1B workers necessarily getting lower wages. I am from Indian Institute of Technology and I know for a fact that students graduating from the departments of computer science and electrical engineering were hired for salaries ranging between $60,000 and $70,000 by companies like NVidia and IBM. And by the way this was seven years back and these are undergraduates I am talking about.
I also know that in the year 2002 problems in the US job market also affected India. Most of the IIT students preparing to come to US on H1B had their jobs taken back. So problems with job markets affect all and sundry, H1Bs are not immune.
As a white american working in Silicon Valley I have to agree that the market rate seems to be the same for experienced people, regardless of country of origin. But as a american caucasian male engineer over fifty, I would have to say that I'm feeling like a very rare duck indeed.
I would credit the increasing difficulty in being hired more directly to cultural issues. The people who hire me are not only likely to be thirty-somethings but also do not speak english as a first language. Differences in ambition and culture prevent these interviewers from seeing me as a peer. So I fail at interviews despite technical qualification. In more than one position, I have found that the job is filled by the same nationality of the manager.
If you spend lunchtime in a cafeteria at a major silicon valley networking company, you will find that most of the engineers are asian and indian folks who are less than 45 years old. In the same age bracket, the caucasians are mostly marketing, upper level management. You will be hard pressed to find a caucasian software enginer over 50.
I believe that H1B is the mechanism by which companies of this sort make outsourcing look like insourcing. And because of the influx of foreign engineer it has had the effect of importing sweat shop hours into the profession. So the effect of H1B tech workers has been to reduce my quality of life and narrow the possible job opportunities which I may sucessfully persue.
pooja: As I understand, IIT is the premier university in India. The MIT of India if you will. I don't doubt graduates from IIT are able to fetch salaries comparable to graduates from the best U.S. universities. Of the people I've worked with, only one was a graduate from IIT, and he was a permanent resident at the time.
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