Wednesday, April 11, 2007

Immigration Myths and the Economy

I am quick to admit that the U.S. immigration system needs an overhaul, but when you listen to the pundits and talking heads go on and on you don't get an idea of how the system really works. I recently read an article from The Creativity Exchange about how the U.S. needs to attract top talent from other countries to stay competitive. I wholeheartedly agree with the theory, but don't think that opening up the floodgates is the way to do it. While I'm no immigration expert I know a little bit about the structure of the system so we'll start there.

To begin you have to know the three interests that drive the U.S. system 1) family 2) employment 3) diversity. Within these interests there are varying quotas and preferences that add other complexities to the system. As you get farther down the preference chain in each interest group, the less likely you are to get into the U.S. on a Visa for many years.

  • The preferences for family immigrants range 1st - unmarried sons & daughters of U.S. citizens, 2nd - spouses and unmarried kids of lawful permanent residents, 3rd - married sons & daughters of U.S. citizens, 4th - brothers, sisters of U.S. citizens.

  • The preferences for diversity depend on the number of immigrants that enter the U.S. in the other interest and tries to get other countries represented in the U.S. population. (ie. Mexican immigrants can count out diversity immigration because they represent a huge portion of the U.S. population.

  • There are 8 preferences for employment so I will briefly list them but not go into much detail. 1st - EB-1's are extraordinary talents or "superstars" in athletics, education, business, research, professors, 2nd - Exceptional ability in science, business or the arts and advanced degree holders enter here, 3rd - Skilled and professional workers who have occupations requiring two or more years of training (bachelors degrees), 4th - Special immigrants includes religious workers or U.S. govt employees abroad.
Here is my problem with the pundit version of the argument. We need knowledge based workers no question. But we have to attract them. If they want to come here and they are qualified they will get in (so long as they aren't from a country that harbors terrorists). Take a look at the most current Visa bulletin put out by the State Department. The government NEVER fills the highest priority employment Visas. The laws allow for thousands more than there are applicants each and every year with basically no wait time to get approved. The first priority workers (ie superstars) are current in every country. The 2nd priority advanced degree holders are current in every country except for China and India where the wait is about 2 years and 4.5 years respectively. If we want these workers in then expand the 2nd preference employment Visas. There are plenty of people who have B.A. & B.S. degrees in the U.S. Then again if more advanced workers or B.A. degree holders are accepted then people will complain they are losing their jobs again because they have to work a little harder to find one. I definitely don't think the answer is to let everyone in nor is it to make people pay more. Most people entering illegally don't want to wait & can't afford it.

To me if the debate is focused on attracting people at the 1st, 2nd or 3rd employment preference it becomes a question of how many jobs are created v. the displacement of Americans. If there is truly a lack of qualified applicants in some sectors then by all means bring people in until enough people can be educated to fill the vacancies. People aren't told that employers must offer a U.S. market wage and post the job for hire in the U.S. for a certain period of time. They can't just bring a guy over here and undercut U.S. competition. I believe it does happen, but not as widespread as the media leads everyone to believe.

Just my 2c... Feel free to comment with what you think.

* Note: A lot of this is oversimplified. It would take a book, economist, and an immigration lawyer to give it the justice it deserves.

Links
The Creativity Exchange: Creative Class Lockout
Apr 2007 Visa Bulletin