More H-1B Visas For U.S. Economic Growth
Here’s an argument, from Vivek Wadhwa over at Techchrunch, that to increase the number of H-1B visas in the United States would be a way to spur economic growth, and actually add jobs. Sounds counter-intuitive, but the idea is that immigrants to the US actually create more jobs than fill existing positions.
Xenophobes will claim that immigrants take jobs away and blame them for everything that is wrong in their lives and in America. But as TechCrunch wrote last week, skilled immigrants create more jobs than they take away. That is a fact. My research team documented that one quarter of all technology and engineering startups nationwide from 1995 to 2005 were started by immigrants. In Boston, it was 31%, in New York, 44%, and in Silicon Valley an astonishing 52%. In 2005, these immigrant founded companies employed 450,000 workers. Add it up. That’s far more than all the tech workers we gave green cards to in that period.
In an economic downturn, during a time of rapid change, new businesses are vitally important to the US. They are nimbler, probably better able to create or exploit niche tech advances, and behave like they have less to lose than entrenched purveyors of the status quo. I’ve known a few 1st generation Americans who behaved like that too. (You could make a case that the same holds true of 1st gen immigrants anywhere I suppose, but I’d argue that it’s even more true in the relative free-for-all that is the US economy.)
This is not about carving the pie into more slices. Growth is about increasing the size of the pie, and a disproportionate number of supremely motivated new immigrants would help with exactly that in starting new businesses. I believe Mr. Wadhwa convinced me.
All immigrants are not H-1s. Do not attribute the accomplishments of immigrants to H-1Bs.
H-1bs are hired to do as they are told, not to innovate.
Name one thing innovated by an H-1B. There is not one thing after 20 years of H-1B.
The devil is in the details – what kind of jobs are being created? Specifically how many American citizen Software Engineers, Programmers, and other equivalent white collar positions. I firmly believe that the influx of H-1b employees w has created additional wait staff in restaurants, and cashiers, not the white collar tech jobs that were stolen.
How many Software Engineers
Well if a new immigrant starts a new company and creates new jobs, it stands to reason that he jobs are being done by US citizens, or H-1B visa holders. It would be interesting to see stats regarding the breakdown there:what percentage of jobs created by new companies go to citizens vs H-1B holders….
But the thrust of Wadhwa’s argument is that however many jobs are taken by h-1B holders, even more are created by others who don’t take jobs, but actually start a company and create jobs/hire people.
From his quote, above: In 2005, these immigrants created companies employing 450,000 workers. That’s a lot more jobs than we ‘gave away’ in 2005 through H-1B visas.
That’s really all that he’s asserting, not that NO ONE was displaced by a H-1B visa holder.
Anyway, I appreciate the comment, and I hope you’ll continue to read Digital Media Minute.