More H-1B Visas For U.S. Economic Growth
Monday, August 31st, 2009Here’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.


