Immigration for Innovation

8/3/2019 Immigration for Innovation

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Iigraion for InnoaionHow to Attract the Worlds Best Talent While Ensuring America

Remains the Land o Opportunity or All

Marshall Fitz January 2012

www.americanprogress.o

The ith report in a series on U.S. science and economic competitiveness rom the

Doing What Works and Science Progress projects at the Center or American Progress


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About this series on U.S. scienceand economic competitiveness

Te U.S. Congress in lae 2010 asked he Deparmen o Commerce o complee wo sudies as paro he reauhorizaion o he America COMPEES Ac. Te rs, which was released on January 6h,

2012, a he Cener or American Progress, ocuses on U.S. compeiiveness and innovaion. Te sec-

ond, due o Congress in early 2013, oers specic recommendaions or developing a 10-year naional

innovaion and compeiiveness sraegy.

We applaud he commissioning o hese repors bu believe we canno aord o wai ha long o ake

acion. Tas why we convened in he spring o 2011 he group o expers lised on he ollowing page.

We spen wo days in wide-ranging discussion abou he compeiive srenghs and weaknesses o our

naions scienic endeavors and our economy, beore setling upon he opics ha consiue he series

o repors we publish here. Each paper in he series looks a a dieren pillar supporing U.S. scienceand economic compeiiveness in a globally compeiive economy:

Rewiring he Federal Governmen or

Compeiiveness Economic Inelligence Universiies in Innovaion Neworks

Manuacurers in Innovaion Neworks Building a echnically Skilled Workorce Immigraion or Innovaion

Te end resul, we believe, is a se o recommendaions ha he Obama adminisraion and Congress

can adop o help he Unied Saes reain is economic and innovaion leadership and ensure ha all

Americans have he opporuniy o prosper and ourish now and well ino he 21s cenury.

Many o our recommendaions are sure o spark deep resisance in Washingon, no leas our proposal

o reorm a number o ederal agencies so ha our governmen works more eecively and ecienly in

he service o greaer U.S. economic compeiveness and innovaion. Tis and oher proposals are sure

o mee resisance on Capiol Hill, where dieren congressional commitees hold sway over dier-

en ederal agencies and heir policy mandaes. Tas why we open each o our repors wih his one

overarching recommendaion: Congress and Presiden Obama should appoin a special commission o

recommend reorms ha are packaged ogeher or a single up-or-down voe in Congress. In his way,

horough-going reorm is assured.

Tis new commission may no adop some o he proposals pu orh in his series on science and

economic compeiiveness. Bu we look orward o sharing our vision wih policymakers as well as he

American people. Presiden Obama ges i righ when he says, o win he uure, we will have o ou-

innovae, ou-educae, and ou-build our compeior naions. We need o sar now.


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Coordinating editors for the series on U.S. science and economic competitiveness

Ed Paisley, Vice Presiden, Ediorial, American Progress

Gadi Dechter, Associae Direcor, Governmen Reorm, Doing Wha Works

Sean Pool, Assisan Edior, Science Progress

American Progress taskforce on U.S. science and economic competitiveness

John Alic, science, echnology, and economic policy

consulan and ormer sa member o he Congressional

Oce o echnology.

Joseph Bartlett, o counsel in Sullivan & Worcesers

corporae deparmen and ormer undersecreary o

commerce a he U.S. Deparmen o Commerce.

Maryann Feldman, S.K. Heninger disinguished chair in

public policy a he Universiy o Norh Carolina, Chapel Hill.

Kate Gordon, VP or Energy Policy a he Cener or

American Progress.

Michael Gurau, presiden, Clear Innovaion Parners, a

venure capial invesmen rm.

David Hart, direcor o he Cener or Science and

echnology Policy a George Mason Universiy School

o Public Policy.

Christopher Hill, proessor o public policy and echnol-

ogy a George Mason Universiy School o Public Policy

and ormer vice provos or research a George Mason.

Neal Lane, senior ellow or science and echnologypolicy a Rice Universiy and ormer advisor o he

presiden on science and echnology policy.

Rachel Levinson, direcor o Naional Research Iniiaives

a Arizona Sae Universiy and ormer assisan direcor

or lie sciences a he Whie House Oce o Science and

echnology Policy.

Jonathan Moreno, Edior-In-Chie o Science Progre

and Senior Fellow a he Cener or American Progre

Arti Rai, Elvin R . Laty Proessor o Law a Duke

Universiy and ormer Adminisraor or Exernal

Aairs, USPO.

Andrew Reamer, research proessor a he George

Washingon Universiy Insiue o Public Policy and

non-residen senior ellow a he Brookings Insiuio

RoseAnn B. Rosenthal, presiden and CEO, Ben

Franklin echnology Parners o Souheasern

Pennsylvania.

Jonathan Sallet, parner in he law rm o OMelven

& Myers LLP, Science Progress advisor, and ormer

direcor o he Oce o Policy and Sraegic Plannin

o he U.S. Deparmen o Commerce.

Daniel Sarewiz, direcor o he Consorium or

Science, Policy, and Oucomes a Arizona Sae

Universiy.

James Turner, Senior Counsel or Innovaion &

echnology, and Direcor o Energy programs a heAssociaion o Public and Land-Gran Universiies

and ormer proessional sa and chie counsel or h

House Commitee on Science and echnology.

William A. Wulf, proessor o compuer science a he

Universiy o Virginia and ormer presiden o he

Naional Academy o Engineering.


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Iigraion for InnoaionHow to Attract the Worlds Best Talent While Ensuring

America Remains the Land o Opportunity or All

Marshall Fitz January 2012


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Contents 1 Inroucion an suary

5 Bacgroun

9 Coeing globally in he 21s cenury

10 Problem: Fraud and gaming the system

12 Problem: Labor mobility restrictions

16 Problem: H-1B visa caps

19 Problem: Employment-based green card backlogs

21 Problem: Limited immigration channels for foreign job creators with new id

23 Problem: Workarounds

28 Conclusion

29 Abou he auhor an acnolegeens

30 Ennoes


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Bu reorms o our high-skilled immigraion sysem are no only imporan o

enhance he coherence and inegriy o our immigraion policies, hey are also an

imporan componen o any naional sraegy o oser innovaion and compei-

iveness.1 Science, echnology, and innovaion have beenand will coninue o

bekeys o U.S. economic growh. Te Unied Saes mus remain on he cuting

edge o echnological innovaion i we are o coninue driving he mos dynamiceconomic engine in he world,2 and U.S. companies mus be able o recrui iner-

naional alen o eecively compee in he inernaional innovaion arena.

o be cerain, liberalizing our high-skill immigraion policies should no be a sub-

siue or invesing in our homegrown workorce. Educaing and raining a 21s

cenury U.S. workorce is a paramoun naional prioriy and he cornersone o

progressive growh. Improving access o op-igh educaion or everyone in his

counry will be he oundaion or our coninued global leadership and prosper-

iy.3 Bu while our universiy sysem atracs he bes and brighes minds rom

around he world, immigran sudens are aced wih a ough choice upon gradua-iongo home or nd an employer o sponsor heir enry ino wha amouns o a

lotery ha migh allow hem o say and work. W hile we subsidize he educaion

and raining o hese oreign-born sudens, our immigraion sysem prevens us

rom capializing on heir collecive genius.

We mus coninue o inves in educaion here a home, bu i is shorsighed in a glo-

balized economy o expec ha we can ll all o our labor needs wih a homegrown

workorce alone. In ac, our curren educaional demographics poin o growing

shoralls in some o he skills needed in odays economy.4 And as global economic

inegraion deepens, he source poins or skill ses will spreadsuch as green

engineering in Holland or nanoechnology in Israelhe breadh o skills needed o

drive innovaion will expand, and global labor pools mus become more mobile.

Reorming our high-skilled immigraion sysem will simulae innovaion,

enhance compeiiveness, and help culivae a ex ible, highly-skilled U.S. work-

orce while proecing U.S. workers rom globalizaions desabilizing eecs.

Our economy has beneed enormously rom being able o ap he inernaional

pool o human capial.5

Even in odays sressed economic climae and agging job marke here is a need o

access ha capial. Tis is a counerinuiive asserion agains he backdrop o he

ongoing jobs crisis aicing he counry. Bu i bears remembering ha we have

dual unemploymen raes in he Unied Saes: For people wih a college degree or


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higher, he unemploymen rae is under 4.5 percen, and in he inormaion echnol-

ogy proessions, i is approximaely 4 percen.6 Tis is no o downplay he severe

hardships acing unemployed Americans wih college degrees. Te naions op

prioriy or he oreseeable uure mus be creaing jobs a all skill levels.

Bu aciliaing access o inernaional alen and puting Americans back o workare no muually exclusive goals. Te purpose o harnessing ha alen is o uel

economic growh in indusries ha will creae jobs. For example, a 2010 sudy

by he Universiy o Washingons Economic Policy Research Cener ound ha

every job a Microsof suppored 5.81 jobs elsewhere in he saes economy.7

Arbirary limiaions on our abiliy o access skill ses rom across he globe are

clearly sel-deeaing. Companies will lose ou o heir compeiors making hem

less proable, less producive, and less able o grow; or hey will move heir

operaions abroad wih all he atendan negaive economic consequences. And

he ederal reasury loses ens o billions o dollars in ax revenues by resricinghe opporuniies or high-skilled oreign workers o remain in he Unied Saes

and conribue o he naional economy.8

Georgia Insiue o echnologys Sephen Fleming, execuive direcor o he

universiys Enerprise Innovaion Insiue, has demonsraed ha access o high-

skilled oreign workers and budding enrepreneurs is a criical prioriy or many

as-growing and innovaive businesses, as well as or our economic compeiive-

ness and growh.9 Bu aciliaing such access riggers equally criical ip-side

consideraions, in paricular he poenial or employers o direcly or indirecly

leverage oreign workers ineress agains he naive workorce.

Curren enorcemen mechanisms are oo weak o adequaely preven raud and

gaming o he sysem.10 And curren regulaions ie oreign workers oo ighly o

a single employer, which empowers employers wih disproporionae conrol over

one class o workers. Ta conrol enables unscrupulous employers o deliberaely

pi one group o workers agains anoher o depress wage growh.11 Even when

here is no malicious employer inen or worker misreamen, he resricion o

labor mobiliy inherenly aecs he labor marke by prevening workers rom

pursuing income maximizing opporuniies.

Te end goal mus be a sysem ha inherenly preerences he hiring o U.S. work-

ers, bu sreamlines access o oreign workers wih needed skills, welcomes enre-

preneurs who can garner nancial backing, and reas all workers employed in he


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Unied Saes on a level plane. Reorms ha enhance legal immigraion channels

or high-skilled immigrans and enrepreneurs mus be complemened wih

reorms o ensure ha a workers immigraion saus canno be used o manipulae

wages and working condiions.

Tis paper digs deeper ino he srucural deciencies and enorcemen shorcom-ings in our high-skilled immigraion sysem and oers a number o legislaive

soluions designed o:

arge employer raud and abuse o immigran laborers. Enhance worker mobiliy or immigrans. Esablish marke-based mechanism o se H-1B levels or high-skilled immigrans. Raise green card caps and sreamline process or all immigrans. Promoe enrepreneurship wih new visa program. Srenghen recruimen requiremens or companies. Resric job shops ha impor emporary immigran rainees and hen expor

American jobs.

Te recommendaions deailed in his repor will enhance labor marke mobil-

iy and promoe economic growh while advancing workorce sabiliy hrough

enorceable labor sandards and proecions.


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Background

Te Unied Saes is he home o many o he worlds nes colleges and universi-

ies, and atracs a signican number o oreign naionals who come on emporary

visas o pursue Bachelors and advanced degrees. In some academic elds like

compuer and inormaion sysems, oreign sudens receive he bulk o advanced

degrees issued rom U.S. universiies.12

Foreignborn U.S. ciien Nobel Laureaes

Nae Year Fiel Counry of origin

Charles Kao 2009 Physics China

Venkatraman Ramakrish-

nan2009 Chemistry India

Elizabeth Blackburn 2009 Physiology or Medicine Australia

Jack Szostak 2009 Physiology or Medicine United Kingdom

Yoichiro Nambu 2008 Physics Japan

Mario Capecchi 2007 Physiology or Medicine Italy

Oliver Smithies 2007 Physiology or Medicine United Kingdom

Anthony Leggett 2003 Physics United Kingdom

Riccardo Giacconi 2002 Physics Italy

Herbert Kroemer 2000 Physics Germany

Eric Kandel 2000 Physiology or Medicine Austria

Ahmed Zewail 1999 Chemistry Egypt

Gunter Blobel 1999 Physiology or Medicine Germany


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Our immigration system is a Byzantine patchwork o dierent visas

designed to address specic needs or interests. Broadly speaking,

our system is divided into temporary and permanent immigration

categories. We have 70-plus dierent temporary visa categories and a

couple dozen permanent resident categories.13 Excluding temporary

visas issued or people traveling to the United States on business trips

and vacations, the Department o State issued around 1.8 million

nonimmigrant visas in 2010.14 And around 1.0 million oreign nation-

als obtained permanent resident statuscolloquially reerred to as

green card statusin that year.15

The various types o employment visa categories makes any generic

denition o high-skilled immigration inexact. For purposes o this

report, high-skilled immigration encompasses programs authorizing

individuals to work in the United States based on qualications that

include at least a bachelors degree or equivalent experience. Only214,672 o the 6.4 million nonimmigrant visas issued in 2010 were

issued to high-skilled proessionals.16 That number includes individu-

als who had already been admitted and were obtaining a new travel

visa, as well as individuals who never entered. Only around 70,000

o the permanent employment-based visas issued in 2010 went to

sponsored workers. In addition, 10,000 are set aside or low-skilled

workers so the total number o high-skilled immigrants that were

granted permanent residence in 2010 was around 60,000.17

An employer typically sponsors a worker or temporary employment

in one o the many categories. Several o the most common examples

or high-skilled workers include

H-1B visas used to hire proessionals

L-1 visas or intracompany transerees

O-1 visas or individuals with extraordinary ability

J-1 visas or doctors, scholars, trainees, and researchers.18

Each category serves discreet interests, imposes separate requi

ments, and creates unique obligations and limitations on the v

holder (the worker) and the sponsor (the employer). Some o th

categoriessuch as H-1B and L-1authorize the employer to

the process o sponsoring the visa holder or permanent reside

When an employer sponsors their oreign national employee o

permanent residence, this normally involves rst testing the U.

labor market to assess whether there are qualied U.S. workers

perorm the position in question. The employer cannot proceed

the green card process or a oreign national worker i they can

a qualied U.S. worker. It is not a requirement to rst test the la

market in a limited number o cases, such as transers o high-le

managerial personnel rom operations abroad.

The employment-based green card process is subject to strict ncal limits that lead to lengthy, multi-year backlogs or applicant

annual numeric caps limit the overall number o employment-

green cards as well as the number o green cards that can go to

employees in certain types o jobs, with certain types o backgr

and rom any one country.

Our current system requires Congress to create new channels e

time a new need emerges, or restrict old channels i abuse is pe

ceived. Congress, o course, is less than nimble, and it is no easy

to legislate new visa categories into or out o existence. The con

quence is an immigration system that responds glacially to cha

national interest and economic needs.

This piecemeal mishmash o visa categories lacks a uniying vis

Multiplicity, rather than exibility, is the hallmark o our system

Uncoordinated multiplicity leads to silos, which leads to rigidity

incoherence. Think tax code and you start to appreciate the im

gration systems complexity.

Highsille iigraion basics

Many o hese oreign sudens reurn abroad ollowing compleion o heir sudies,

bu ohers wan o remain in he Unied Saes and seek a work-auhorized visa ol-

lowing graduaion. Indeed, hese sudens ofen choose o sudy in he Unied Saes

based in large par on he abiliy o pursue proessional opporuniies in his counry


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afer graduaion. Ye annual numeric limis on he number o available employmen

visas creae roadblocks or sudens seeking o remain in he Unied Saes. As he

Presiden o Sanord Universiy John L. Hennessy has recenly argued:

More than 50 percent o our PhDs in engineering come om outside the U.S.

Now 38 percent o our PhDs in the physical sciences come om outside the U.S.We spend between a quarter and a hal a million dollars per student to educate

somebody to the level o a PhD, and then you want to send them out aer weve

made this investment? Tis is a silly thing to do. We need to keep them in.19

Tese roadblocks have creaed openings or universiies and employers in oher

counries o recrui hem. A number o compeior counries have sreamlined

heir immigraion policies o make i easier or heir companies o recrui inerna-

ional alen.20 Ta has, in urn, led some prospecive sudens o pursue educa-

ional opporuniies in oher counries.

Foreign suden ineres in U.S. colleges and universiies peaked in 2005 and has

no reached hose levels since hen alhough applicaions and admissions are

climbing again.21 A Council o Graduae Schools repor ound ha problems wih

obaining work-auhorized visas ollowing graduaion was one o he reasons or

he decline in inernaional enrollmen.22

Any decrease in oreign suden enroll-

men, paricularly in advanced degree

programs in he SEM elds, raises

concerns because o he eec ha

high-skilled oreign naionals have

had on innovaion and job creaion.

A 2007 sudy by Duke Universiy and

Universiy o Caliornia, Berkeley

proessors ound ha 25 percen

o he echnology and engineering

companies sared in he Unied Saes

rom 1995 o 2005 had a leas one

key ounder who was oreign-born.23

Te sudy urher repored ha in

2005 hese immigran-ounded companies produced $52 billion in sales and

employed 450,000 workers naionwide.

FIGURE 1

Yearoyear ercen change in inernaional alicaions

an offers of aission2003 to 2004 through 2010 to 2011

Applications

Offers of admission

20%

10%

0%

-10%

-20%

-30%

-40%2003

to 20042004

to 20052005

to 20062006

to 20072007

to 20082008

to 20092009

to 201020

to 2

Oers o admission data or 2011 are preliother data points reect fnal fgures.

Source: CGS International Graduate Admis

Survey, Phases II and III, 2004 to 2011


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Te legiimae objecive behind limiing he supply o high-skilled visas is o pre-

ven employers rom using unetered access o oreign workers o deleverage U.S.

workers. Bu resricing he supply o such visas poenially undermines anoher

imporan goal: maximizing opporuniies or economic growh by enhancing our

compeiiveness. Tis aricle proposes argeed reorms o ensure ha our high-skilled immigraion policies lif up economic growh and worker proecion as

win goals raher han compeing alernaives.

Iigranfoune coanies

Coany Nae Reenue Nuber of eole eloye

Comcast Corporation $37.94 billion 102,000

Intel Corporation $43.62 billion 82,500

Google Inc. $29.32 billion 24,400

Lie Time Fitness, Inc. $912.84 million 19,000

eBay Inc. $9.15 billion 17,700

Yahoo! Inc $6.32 billion 13,600

Source: The Wall Street Journal - Market Watch http://www.marketwatch.com
http://www.marketwatch.com/http://www.marketwatch.com/


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Competing globally

in the 21st century

Our high-skilled immigraion policies ail o adequaely promoe and proec

imporan naional ineress. Resoring he sysems inegriy and uncionaliy

hrough a combinaion o srong enorcemen and srucural reorms is a neces-

sary componen o our innovaion agenda.

Arbirary numeric limiaions and oher programmaic resricions diminish

economic eciency and symie growh while prevening labor mobiliy. Tey also

lead companies o pursue workarounds ha can warp business pracices, precipi-ae oshoring, and limi he abiliy o U.S. workers o compee. Layered on op o

a weak enorcemen regime, hese problems undermine he benes provided by a

robus and exible high-skilled immigraion sysem.

Te recommendaions in he ollowing pages will help realign our high-skilled

immigraion policies wih our responsibiliy o U.S. workers and our naional

ineres in global compeiiveness. Tey are designed o resore he inegriy o he

sysem while enhancing mobiliy or workers and exibiliy or employers. Te

goal is o make he sysem more ecien, enable employers o be more compei-

ive and producive, and empower workers o compee on a level playing eld

raher han being pited agains one anoher in a race o he botom.

Several basic premises underlie he ollowing recommendaions. Tey are:

Global economic inegraion will coninue o deepen. Tis inegraion can have desabilizing eecs on cerain secors o he workorce. Susainable economic growh depends on our abiliy o remain on he cuting

edge o echnology and innovaion.

Te global markeplace or inernaional alen is expanding, no shrinking, and wereuse o shop here a our compeiive peril.

We mus help our home grown workorce develop 21s cenury skills so changes o

immigraion policy are only one small response o he economic challenges we ace.


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Bearing hese premises in mind, les examine he problems and he soluions o

our high-skilled immigraion needs.

Problem: Fraud and gaming the system

As wih any highly regulaed governmen program, some paricipans seek o

game he immigraion sysem or compeiive advanage. Given he complexiy

o he regulaory scheme, some employers run aoul o rules inadverenly, ohers

nd loopholes ha make hem complian wih he leter bu no he spiri o he

rules, and sill ohers commi ourigh raud.

Fraud is a serious problem in he sysem, even i he incidence is airly low. Willul

violaions ha go undeeced and unpunished clearly undermine boh he ineg-

riy and he policy objecives o our immigraion programs or he highly-skilled.

Workers are no provided he proecions required by law, and legiimae employ-ers mus compee on an uneven playing eld. Fraud undermines public con-

dence in visa programs whose proper uncioning is a crucial componen o he

counrys economic srengh. And public and poliical revulsion a visa program

abuses can lead o policy proposals ha exceed he scope o he problem and run

couner o naional ineress.

Te Deparmen o Homeland Securiy deermined in an assessmen o he H-1B

program ha violaions are predominanly commited by small, new companies,

raher han well-esablished companies.24 I concluded ha many o he idenied

violaions are in areas where enorcemen o exising rules could curb abuses, or

where small changes o he rules would allow proper enorcemen.

Unsurprisingly, mos employers (80 percen) ully comply wih program require-

mens.25 And many o hose who are no in complee compliance have commi-

ed only minor and uninended violaions o complex rules ha do no reec an

inenion o game he sysem (7 percen). Ye an evaluaion o hose employers

(13 percen) who were idenied as willul violaors makes clear ha more delib-

erae seps are necessary o resore he inegriy o he sysem.26

For example, visa raud by a small company in Iowa highlighs he kinds o

abuses ha can occur and ha need o be sopped.27Te I services rmVisions Sysems Group was indiced on 10 ederal couns involving submiting

alsied documens in suppor o heir workers visa applicaions.28 In addi-


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ion, H-1B visa workers were allegedly placed in locaions on he Eas and Wes

coass while claiming employmen in Iowa where wage minimums would be

lower, hereby violaing exising wage laws. Vision Sysems pleaded guily o a

elony charge and paid resiuion o $236,250.29

Te prosecuion o several recruiing companies in 2004 highlighed anohervein o raud and abuse. Saring in 2001, hundreds o eachers recruied rom

he Philippines on H-1B visas were alsely old hey had jobs waiing or hem

and could gain permanen residence in he U.S. Te recruiers allegedly cons-

caed heir documenaion and housed hem in subsandard housing, required

hem o seek permission o leave he premises, and barred hem rom having

heir own ransporaion. In spie o hese circumsances, he mos serious

charges were dropped in a plea bargain and he companies were only senenced

o hree monhs probaion. We clearly need o preven his y pe o raud and

abuse wih more serious penalies or v iolaors.30

More recenly, one o he bigges users o H-1B visas, Inosys, is accused o

misusing B-1 visas in order o ge around H-1B limiaions and o increasing he

value o heir sock by charging cusomers he higher H-1B pay rae or he labor

cos o B-1 holders.31

Solution: Target fraud and abuse

Te governmen has already iniiaed and dedicaed subsanial resources oward a

number o raud deecion iniiaives.32 Te resuls o hose eors can help poin

he way oward a more robus and eecive enorcemen regime.

U.S. Ciizenship and Immigraion Services made public an H-1B Bene Fraud

and Compliance Assessmen over a year ago. Tis assessmen idenied clear

rends o raud and oher program violaions, ypied by such problems as:

Nonexisen or shell peiioning employers. Employers no paying salaries hey had promisedand been requiredo pay.

Employees no having he promised degrees or oher qualicaions. Employees no perorming qualiying responsibiliies.


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12 cee ae pe | i iv

Te assessmen concluded ha violaions were more common among smaller

more recenmore poorly capialized employers. And i indicaed ha hese

violaions were overwhelmingly suscepible o deecion hrough sie visisa

airly sraighorward and easily available orm o invesigaion and enorcemen.

In response o he assessmen, USCIS has begun a more robus sie visi pro-gram,33 issued clariying memoranda relaed o some o he ndings, held a

number o sakeholder meeings, and iniiaed raining sessions.34 Bu clearly here

mus be coninued ocus on he issue designed o resul in beter, more argeed

enorcemen policies.35

Enorcemen policy reorm should be based on lessons already learned. I

should be orceul and argeed as closely as possible a idenied problems so

ha i does no undermine responsible and careul program users. Congress can

help proec all workers agains abuse and good-aih employers agains unair

compeiion. I should:

Provide auhoriy or he Deparmen o Labor o do a more horough, bu sill

imely, review o he labor condiion applicaion ha employers submi o

iniiae an H-1B peiion.Eliminae unnecessary resricions on DOL invesigaive auhoriy and increase

DOL enorcemen resources.Require DOL o conduc invesigaions o employers whose workorce is made

up o more han 15 percen H-1B workers.Require proo o paymen o required wages beore a visa can be renewed.Faciliae improved coordinaion among he relevan agencies, especially DHS

and DOL, so ha inormaion provided o one agency in he process can be

checked agains ha provided o anoher.Srenghen agency auhoriy o impose eecive penalies agains violaors.

Problem: Labor mobility restrictions

Oher elemens o he employmen-based immigraion sysem can also warp he

labor marke. A primary concern ress in he poenial or a sponsoring employero exer disproporionae leverage over oreign workers. When a worker is bound

o a single employer, i aecs oher similarly siuaed workers employed by he

same employer or compeiors. Says chairman o he Whie House Council o

Economic Advisers Alan Krueger:


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13 cee ae pe | i iv

Job shopping is an essential protection against exploitation and inecient

allocation o-re sourceI [temporary workers] do not have the opportunity to

change jobs with minimal administrative burden, other workers in the United

States will potentially sufer because employers will have some scope to exploit

guest workers and lower labor conditions more generally.36

I an employer is able o signicanly consrain a worker rom exercising his or

her righs or compeing or he bes job opporuniy, i creaes an advanage or

he employer.

As noed above, he dieren visa caegories carry dieren resricions. Some

employmen visas permi more job mobiliy han ohers, bu or he mos par, a

oreign worker is ied o a single employer unil he or she receives legal permanen

residence. For insance, an employer mus sponsor a oreign worker on an H-1B

visa o work in a specic posiion a a specic salary. In order or ha worker o

change jobs wihin he company, he employer mus le a new H-1B peiion wihhe governmen auhorizing he change o posiion. In order or ha worker o

change employers, he or she mus wai unil he new employer les a peiion on

his or her behal.

wo acors diminish he oreign workers mobiliy. Firs is he requiremen ha

visa holders mainain heir immigraion saus or be subjec o long-erm repercus-

sions, including in some cases bars on re-enering he Unied Saes. An H-1B visa

holder who quis his or her job or is erminaed mus secure immediae sponsor-

ship rom a new employer or risk alling ou o saus. I he or she ails o secure

such sponsorship and does no leave in imely ashion, a subsequen peiion led

by a new employer will be denied and oher consequences may atach. In shor,

H-1B visa holders remain ied o heir employers unless and unil a new employer

les a peiion. Tis diminishes visa holders abiliy o asser heir righs by walk-

ing away rom an abusive employer.


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14 cee ae pe | i iv

ON-CAmpUS RECRUItING

Attend school with F-1 visa, which provides lim-

ited employment and o-campus opportunities

Time: Two to our years

OptIONAL pRACtICAL tRAINING

Participate in International student program,

which provides ull employment authorization

Time: One year or 29 months or STEM workers

pOSSIBLE BREAk IN EmpLOYmENt

AUtHORIzAtION dUE tO H-1B CAp

EmpLOYER FILES H-1B pEtItION wItH USCIS

Time: Up to six months

EmpLOYEE AppLIES FOR H-1B vISA At U.S.

CONSULAtE ABROAd ANd ENtERS tHE COUNtRY

tO StARt wORk

Time: A ew days to six months

EmpLOYER FILES H-1B CHANGE OFEmpLOYER pEtItION wItH USCIS

Time: Approximately one month;

can begin work with proo o ling a

non-rivolous petition

ALREAdY EmpLOYEd IN tHE UNItEd St

Typically already hold H-1B status

OvERSEAS RECRUItING

Iigraion ses for os highsille orers

H-1B SpECIALtY OCCUpAtION wORkE R StAtUS

Time: Three years with one extension o three more

years, plus additional yearly extensions in limited

circumstances

LABOR CERtIFICAtION wItH

dEpARtmENt OF LABOR

Test o U.S. job market to determine nonqualied

and available U.S. workers.

Time: Eight months to two years o preparation and

DOL processing

ImmIGRANt vISA pEtItION (I-140)

Based on approved labor certication application

Time: 10 to 18 months

wAIt FOR ImmIGRANt vISA NUmBER

Time: May be seven years or more depending on the

occupation and country o birth

FILE AdjUStmENt AppLICAtION (I-485)

Time: One to two years

tOtAL tImE tO OBtAIN A GREEN CARd ONCE

SpONSORSHIp BEGINS: 2.5 tO 12.5 YEARS


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15 cee ae pe | i iv

Tis is no a problem in mos circumsances because mos employers are no abu-

sive and mos workers will no leave a curren job unil a new one is lined up. Bu

he exra seps ha are required o obain new sponsorship and he inerim limia-

ions on mobiliy do esablish a dynamic in which employers possess greaer inu-

ence over heir employees han in radiional a will employmen siuaions. Ta

dynamic in urn hurs all workers and undermines employer compeiiveness.

Te second eaure o he curren sysem ha diminishes worker mobiliy is

he general requiremen ha an employer sponsor a oreign worker or perma-

nen residence. Te sponsorship process can ake years because o he dispariy

beween he number o emporary and permanen visas available annually. And in

mos cases, i he worker leaves o join anoher employer, he or she mus sar he

green card process all over again.

Tis lenghy process accords he employer anoher axis o leverage over he

worker. Te mos obvious concern is ha an unscrupulous employer can exerexcessive conrol over he visa holder by lording permanen residence over his or

her head. Bu even in he normal course, he inabiliy o reely change employ-

ersor even jobs wih he same employerand maximize earning poenial

during ha ime can have a depressing wage eec.

The solution: Enhance worker mobility

Workers abiliy o change employers a will promoes eciency in he labor mar-

ke and helps preven employer abuse. I employers underpay, overwork, or oh-

erwise misrea workers, he workers can leave and he employers evenually lose

heir workorce or cease heir unscrupulous pracices. Te corollary, o course, is

ha when workers are no ree o change jobs, heir employers have undue lever-

age over wages and working condiions.

A cenral problem wih curren high-skilled immigraion programs is ha hey

bind workers oo ighly o a single employer. Even hough mos employers do

no inenionally misuse heir leverage over hese workers, he power dierenial i

creaes can aec boh oreign workers and similarly siuaed U.S. workers. Te neresul can be a sligh depression o wages. 37

Enhancing he porabiliy o oreign workers should be relaively unconroversial

or employers ha hire based on who is bes or he job and no based on who


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16 cee ae pe | i iv

hey can exer he mos conrol over. I is rue ha he employers have invesed in

he worker by paying he coss o sponsorship, bu ha should be considered par

o he cos o hiring oreign workers, no a premium ha allows he employer o

exer special conrol over he worker.

o balance he playing eld or workers and employers, Congress should:

Esablish a sauory grace period or red workers o nd a new job raher han

mainaining he curren rules, which make hem immediaely deporable and

subjec o addiional penalies or unlawul presence. Revise he rules regarding he permanen residence process o allow sponsored

workers o change o a dieren employer earlier in he process. Permi expanded caegories o high-skilled emporary workers o sel-peiion

or permanen residence. One possibiliy ha Congress should consider is o auhorize sel-peiioning

afer a cerain ime, such as 18 monhs.38 Anoher possibiliy is o auhorizesel-peiioning or individuals working in high-employmen indusries wih, or

example less han 2 percen unemploymen.

Problem: H-1B visa caps

Te mos widely used high-skilled immigraion classicaion or emporary workers

is he H-1B visa. Te availabiliy o H-1B visas in our curren sysem is regulaed by

a congressionally esablished annual numeric ceilingor cap as i is commonly

called. Te curren annual allomen o new H-1B visas is se a approximaely

85,000, including 20,000 ha are reserved or individuals wih an advanced degree

rom a U.S. college or universiy.39 Ta number was drawn rom he poliical eher,

no rom any concree policy analysis or any specic economic indicaors. And he

las decade has clearly demonsraed jus how arbirary hese numbers are.

We have repeaedly seen over he las decade ha demand in he H-1B program

racks he business cycle, and no in a way ha would indicae ha employers

rely on he program o hire cheap labor. When he economy is humming and job

growh is robus, demand or high-skilled oreign workers rises despie he addi-ional coss and he ime i akes o hire a worker permanenly.


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17 cee ae pe | i iv

When he economy is in rerea and losing jobs, he demand or such workers

declines signicanly. I employers hough hese workers were a good source o

cheap labor, one would expec usage o rise during bel-ighening periods. Te

opposie appears o be rue.

Te curren cap has clearly proven insucien o mee employer demand in a

booming economy. When he economy ran ho in recen years, here was so much

demand or hese oreign proessionals ha he cap was exceeded on he rs day

o he ling period.40 For scal year 2008, some 150,000 peiions were led on

he rs day, April 1, 2007, or 85,000 slos.

Tis supply-demand mismach creaes wo problems, each economically sel

deeaing. Firs, when he H-1B supply is exhaused in April, no peiions can be

led or sudens who will receive bachelors degrees in May or June. Tis excludes

an enire years worh o graduaes rom access o visas afer our years o U.S. edu-

caion. 41 We have invesed in heir educaion. We should a leas have he opportu-

nity o see a reurn on ha invesmen.

Second, he immigraion service had o creae a lotery sysem o deermine whocan receive a visa due o he surge o peiions ha were led on he rs day. Te

erms sound economic planning and lotery rarely well ogeher. Requiring

employers o organize heir ofen-complex recruimen and hiring processes in

order o le a peiion on a specic day each yearsix monhs in advance o a

Fro eorary orer o green car

Fees Cos o eloyer

H-1B petition or FY 2010 $2,320

H-1B application cost $131

Visa petition led with USCIS $475

H-1B extension $1,820

AC21 extension $320

Spouses work authorization and visa application $262

Applications to adjust status to that o permanent resident $2,020

Extend H-1B status $320

Legal ees $10,000

toal $17,668


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18 cee ae pe | i iv

poenial hire, wih no guaranee ha hey will acually be able o hire he per-

soncreaes obvious and enormous ineciency. Tis aricial imeline and

he atendan uncerainy o he lotery process render employers unable o hire

oreign workers in real ime o respond o real and changing needs.42 Ta in urn

may sall or kill business projecs ha could creae jobs and economic opporuni-

ies, which is plainly conrary o our naional ineres.43

Weakness in he economy appears o serve as a reasonably eecive governor on

H-1B lings. As in prior economic downurns, here has been a precipious drop

o in H-1B lings during he recen recession. Nearly double he annual allomen

o applicaions was led on April 1, 2008, he rs day o he scal year 2009 ling

period. While he scal year 2010 cap44 was no reached unil eigh monhs afer

he ling period opened up. I ook even longer or he cap o be me in scal year

2011.45 Sill, even wih signicanly decreased demand, he annual allomen o visas

has been reached well beore he end o he scal year. Ta means ha employers

are barred rom hiring new H-1B workers during an exended period, suggesingha he 85,000 gure may be insucien o mee he needs o U.S. employers.

O course, he linkage beween demand or H-1B workers and he ebb and ow o

he business cycle does no in isel prove he exisence o skills shorages or ha

H-1B workers are no someimes used o deleverage U.S. workers. I does, how-

ever, rebu he narraive ha employers are only looking o hese oreign workers

as a source o cheap labor. I is undoubedly rue ha some employers view he

hiring o H-1B workers as a less permanen human resource invesmen and hus

a preerable, less cosly alernaive even in a down economy. Bu i is equally rue

ha many employers sponsor a large percenage o heir H-1B employees or per-

manen residence,46 layering subsanial addiional coss ono long-erm worker

invesmen and negaing he cheaper alernaive argumen.

In shor, while here is clearly a supply-demand disconnec, no general conclu-

sions abou he moivaion or hiring H-1B workers can be elucidaed rom

demand cycles. I appears more likely ha employers pursue such workers or

a mulipliciy o reasons, some more consisen wih our naional ineres han

ohers. Insead o using an arbirary annual cap ha limis boh good and bad

program usage, we recommend a baske o reorms o ensure ha employers usinghe program hire high-skilled oreign workers because hey are he bes recruis

or heir enerprise, no because hey are a cheaper alernaive.


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20 cee ae pe | i iv

er how long ago hey sared he green card process.49 Even individuals wih

advanced degrees ace muliyear backlogs i hey hail rom cerain counries.50

Tese backlogs mean ha sponsored workers can be suck in he same job or

yearsin some cases as many as eigh or nine years. ied o a single sponsor-

ing employer, hese workers are prevened rom assering heir righ o pursueincome-maximizing opporuniies. Ta sagnaion creaes a depressing eec on

he labor marke, huring all workers. Moreover, spouses o he sponsored princi-

pal are prohibied rom working hroughou he enire period. Ta obviously cre-

aes an unhealhy dynamic in which one spouses career mus remain in abeyance

unil he proraced green card process concludes.

Legiimae employers eel he eec as well. Because sponsored workers mus

ypically remain in he posiion or which hey were sponsored, employers are no

able o move workers ino more producive capaciies.

Personal, company, and governmen resources are wased as emporary visas,

ravel documens, and oher similar iems mus be consanly renewed. And work-

ers and heir amilies ace remendous diculies in securing loans o purchase

homes, enrolling in universiies as in-sae residens, and pursuing career opporu-

niies or spouses.

Wha his increasingly means is ha highly alened, highly producive proession-

als who have been educaed in U.S. schools ake heir brainpower elsewhere.51 Tis

ulimaely harms he U.S. economy and he American worker.

The solution: Raise caps and streamline the process

Te annual allocaion o permanen residence visas should be realigned o reec

he realiy ha many workers on emporary visas inend o remain in he counry

permanenly. Enabling hem o become permanen residens more quickly and

wih ewer atachmens o a single employer enhances heir produciviy and mini-

mizes heir abiliy o be unairly leveraged agains U.S. workers. Congress should:

Increase overall green card numbers o clear he exising muliyear backlog o

high-skilled proessionals awaiing permanen residence.


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22 cee ae pe | i iv

elds: indusrial engineering, civil engineering, mechanical engineering, maerials

engineering, chemical engineering, economics, physics, and compuer science.52

More o he poin, individuals wih hese SEM backgrounds are he primary driv-

ers o echnological innovaion.53 Ta innovaion is he oundaion or new business

enerprises and a cenral ingredien in job creaion sraegies. Tis means ha henex grea idea, he nex grea scienic breakhrough ha could evenually produce

housands o new jobs is likely o come rom hese young graduaes. Bu when

he holder o ha idea is a oreign suden or a oreign naional who would like o

develop he produc or echnology in he Unied Saes, here is no obvious way or

hem o do so. Tey may be able o nd employmen wih a universiy or research

aciliy ha can sponsor hem or an employmen visa. And hey may be able o col-

laborae in ha seting on new research ha leads o he issuance o imporan pa-

ens. Indeed, nonciizens make up an esimaed one-quarer o all paen applicaions

rom he Unied Saes.54 Bu heir eors in ha regard will be consrained by he

dicaes o he employing eniy raher han he inspiraion o heir creaive minds.

A comparable naive born innovaor can pich heir big idea and, i persuasive,

secure nancial backing o develop i and launch a business around i. Ta we

would preven a oreign innovaor rom pursuing he same idea makes litle

sense. In mos cases, ha oreign naional is no compeing wih an American

invenor. Bu by driving hem o pursue heir idea and sar heir business in

anoher counry, our immigraion sysem ransorms hem ino a compeior.

Insead o helping creae jobs in he Unied Saes, our immigraion sysem pro-

moes he creaion o hose jobs abroad.

Solution: Promote entrepreneurship with new visa program

Our byzanine immigraion sysem provides visas or a wide array o aciviies,

bu here is no channel in he labyrinh or edgling enrepreneurs wih he nex

grea idea. Many o hese poenial innovaors and job creaors are already in he

Unied Saes on suden visas or emporary work visas. Bu hey are blocked rom

pursuing heir grea idea and we are prevened rom reaping he poenial ruis o

ha idea realized.

I someone has a business concep ha can garner subsanial capial invesmen

and ha will creae jobs or U.S. workers, we should do everyhing possible o

atrac, no repel hem.


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23 cee ae pe | i iv

Congress should:

Pass legislaion designed o aciliae he enry o oreign enrepreneurs who

have business plans backed by capial invesmen. Enac he new enrepreneur visa and is renewal should be condiioned on

meeing invesmen or revenue and job creaion benchmarks.55

Problem: Workarounds

When no legal avenue exiss o hire a specic worker, bu here is a manies need

o do so, some employers will accep deea and scale back heir plans. Ta can

mean orgoing developmen o a new produc or delivery o a new service ha

could creae more jobs. Oher employers will search or workarounds o he hiring

obsacle eiher by rying o push he limis o he law or by ignoring i alogeher.

Te workaround has been hiring undocumened workers on he low-skilled end o

he specrum where employers have conroned a shrinking U.S. workorce keyed

o hose jobs and virually no legal channels o hire oreign workers.56 Te know-

ing hire o such workers is a clear and direc violaion o he law. Te more ypical

siuaion is ha employers urn a blind eye o suspicions because he alernaive is

o leave posiions unlled.

Workarounds on he high-skilled end assume dieren orms. Some employ-

ers will ry o shoehorn a worker ino a visa caegory ha has available slos, bu

doesn really . Ta creaes exra work or he governmen in he adjudica-

ions process and poenially dilues hose oher visa caegories rom heir acual

purpose.57 Oher employers will conclude ha he business impedimens o hiring

he necessary workorce are severe enough ha hey move some or all o heir

operaions abroad.58 Tere has been some debae abou he economic impac o

oshoring,59 bu i is dicul o argue ha i does no hur U.S. workers.

Sill oher employers are echnically complian wih program rules bu are con-

ducing operaions ha conravene policy goalssuch as high-volume job shops

where mos o he companys operaions are acually abroad.60

Companies areable o hire H-1B visa workers in he Unied Saes o serve as an on-sie presence

while hey coordinae mainly oshore aciviies.61 Nohing in he law sops com-

panies who wan o use H-1B visas as a raining program or uure ousourcing.

Some U.S. companies have required laid o workers o rain H-1B visa holders as


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25 cee ae pe | i iv

and engaging in workarounds harms our naions economic ineress. We obviously

wan businesses o seize growh opporuniies. Bu orcing hem o do so hrough

workarounds is inecien and warps he playing eld or U.S. workers.

Solution: Strengthen recruitment

Employers make a variey o nuanced bu imporan judgmens in heir hiring

processes ha can be disilled o a comparison o resumes. Employers mus be

prohibied rom considering impermissible acors such as race, ehniciy, and

gender in making hiring decisions. Bu he ederal governmen also should no be

placed in he unenable posiion o micromanaging judgmens abou who he bes

candidae is or a privae secor job.

Requiring companies o hire equally qualied U.S. workers over oreign workers

makes sense in principle. Bu puting such a requiremen ino pracice ransormshe real world hiring process ino an aricial exercise. Employers would be in he

posiion o having o jusiy o a governmen invesigaoror years afer he ac

why one individual was hired over every oher applican. Such a process would give

employers an incenive o make a decision on who is bes or he job and hen build

paper benchmarks as a bulwark o jusiy decisions agains governmen scruiny.

Tis doesn mean ha we shouldn srongly encourage employers hrough incen-

ives o rain and hire U.S. workers. We deniely can and mus.64 Te massive

invesmen in jobs included in he American Recovery and Reinvesmen Ac

o 2009 was jus one example o he naional commimen we need o coninue

growing jobs or U.S. workers.65 Invesmen in clean energy presens anoher

opporuniy o advance he qualiy and range o jobs available o U.S. workers.66

And he educaion and raining revenues generaed rom he H-1B user ees

should be augmened and leveraged o increase opporuniies or U.S. workers o

seize hese new opporuniies.67

Wha i does mean is ha empowering he governmen o second-guess basic hiring

decisions is inecien and will undermine our pro-growh objecives wihou acu-

ally proecing U.S. workers. Te soluion is hereore o require employers who seeko hire high-skilled oreign workers o demonsrae ha hey ruly are making mean-

ingul and eecive eors overall o hire U.S. workers when lling open posiions.


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26 cee ae pe | i iv

Te Labor Deparmen can eecively review wheher an employer has an overall

recruimen process ha shows i is engaged in serious and sucien labor marke

recruimen. I employers are mandaed o show real recruimen ha mees or

exceeds indusry sandards, i will preven a race o he lowes possible wage.

Congress should:

Require employers o esablish and documen an overall sysem o recruimen

ha rs arges U.S. workers and ha mees or exceeds indusry sandards or

recruimen o similarly siuaed workers.68

Creae a severe penaly scheme or employers who ail o pay he prevailing or

acual wage or he posiion.

Increase he H-1B educaion and raining user ees and reassess allocaion o

such ees beween he Naional Science Foundaion and Deparmen o Laboro ensure ha he unds are maximizing opporuniies or U.S. sudens and

workers o compee or high-skilled jobs.69

Solution: Restrict job shops

Te basic goal o our high-skilled immigraion regime should be o enhance he

compeiiveness o U.S. employers by enabling hem o ap op-igh inernaional

alen and workers wih specic skill ses. Te goal is no o provide a limiless

pool o enry-level workers who, in he aggregae, can drive down he naive born

workorces wages. Bu companies who ideniy specic needs ha hey canno ll

wih he naive workorce should be able o access oreign workers while guaran-

eeing wages ha proec agains wage deaion or all workers.

One business model ha compors wih he leter o he law bu no is spiri is he

job-shop.70 Tese businesses provide a saging ground or oreign workers o come o

he Unied Saes, develop skills, and hen go home o aciliae operaions ha com-

pee wih U.S. companies. In a sense, hey help rain oreign workers in he Unied

Saes wih skills needed o oshore inormaion echnology services and U.S. jobs.

O course, individuals who come o he Unied Saes or educaion or experience

will always be eniled o ake ha knowledge home and pu i ino pracice in a

way ha leads o compeiion wih he Unied Saes. Tere is nohing inherenly


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27 cee ae pe | i iv

wrong wih ha. Indeed, i is in our ineres ha some individuals who rain in

he Unied Saes and are exposed o our counrys values evenually reurn home

o share ha undersanding. Bu i conravenes our naional ineres o explicily

permi a pracice ha rains oreign workers o replace U.S. workers.

Congress should adop he ollowing resricions o ensure ha he H-1B programpromoes he goal o enhancing U.S. compeiiveness:

Prohibi he use o visas by sang companies. Companies ling an H-1B

peiion should be required o ates ha he H-1B worker will be supervised

and conrolled by he H-1B employer, hus prevening so-called job shops or

body shops rom paricipaing in he H-1B program.

Bar companies wih more han 50 employees whose workorce is comprised o

more han 50 percen oreign workers rom he H-1B program unless hey can

esablish o he saisacion o he Deparmen o Labor ha hey pay all o heiremployees more han 125 percen o he prevailing wage and can esablish a

recruimen program or U.S. workers ha exceeds indusry sandards.

Preven emporary work visas, such as H-1B visas and L-1 visas, rom being made

available o oreign naionals who will use hose visas o shadow U.S. workers in

order o allow he jobs perormed by hose U.S. workers o be moved oshore.


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28 cee ae pe | i iv

Conclusion

alened immigrans have made crucial conribuions o he developmen o nex

generaion echnologies and have ounded some o he mos innovaive busi-

nesses in he Unied Saes. Tey have creaed housands o American jobs, ueled

produciviy, and driven economic expansion. And as global economic inegraion

deepens, susainable growh will depend in par on our coninued abiliy o atrac

he bes and brighes innovaors and enrepreneurs.

Simply pu, enhanced labor mobiliy is a 21s cenury realiy and ulimaely aneconomic imperaive. Bu as he global alen pool expands and becomes more

uid, i also creaes insabiliy in some secors o our homegrown labor orce.

Our policymakers mus endeavor o minimize hose eecs and preven employ-

ers rom piting he ineress o immigran and naive workers agains each oher.

A he same ime, as our economic uure depends ever more on leveraging he

knowledge, skills, and creaiviy o our people, we mus ensure ha we are no

ignoring he imporan source o skilled, creaive, and knowledgeable people

represened by our immigrans.

As he naion emerges rom he shadows o his grea recession, we mus embrace a

progressive growh sraegy ha enhances our global compeiiveness. Te reorms

o our high-skilled immigraion policies oulined in his paper will help promoe he

naions dual ineres in growing he economy and proecing workers.


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29 cee ae pe | i iv

About the author

Marshall Fitz is Direcor o Immigraion Policy a he Cener or American

Progress, where he direcs he Ceners research and analysis o economic, polii-

cal, legal, and social impacs o immigraion policy in America and develops policy

recommendaions designed o urher Americas economic and securiy ineress.

Acknowledgements

Te auhor exends his sincere hanks o Mayu akeda, a sellar Cener or

American Progress inern, or her valuable research conribuions.

Members o our askorce on science and compeiiveness provided consrucive

criicism, eedback, and ideas indispensable o his series. In paricular, James

urner, Neal Lane, Brian Kahin, Ari K . Rai, Rachel Levinson, Daniel Sarewiz,John Alic, and Chris Hill provided criical eedback. Finally, his series would also

no have been possible wihou imporan and subsanive conribuions rom

Sarah Warell, Michael Etlinger, Jiinder Kohli, Kae Gordon, and Reece Rushing.


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Endnotes

1 t kll d J i, a nl iv aed: pe-ve ple E gw d oy t s eed tely (W: cee ae pe, 2007),vlble ://www.ee./e/2007/11/d/v_e.d.

2 J slle, Ed pley, d J me, te gey iv: te Fedel gvee d e gw rel

iv cle (W: see pe, 2009), vlble ://www.eee./w-e/ld/2009/09/ed_e.d.

3 L se, W Lee, (W: cee aepe, 2009), vlble ://www.ee./e/2009/06/w_lee.l; L clde, Edl

tl e 21 cey, cee ae pe, Jly 28,2009, vlble ://www.ee./e/2009/07/edl_l_e.l.

4 65 ee ce see pD, 57 ee epD, 58 ee y pD, 68 ee eee pDd 32 ee bll ee pD u.s. vee ee b, ee :// www..v//be/08301/.

5 i ded 1 4 e blly ded e wee ed 1990-2005; i ded blly dedus vee-bed e eeed e $130 bll

d elyed 220,000 u.s. we; pe e: iel,sle, s, eBy, i, Y, gle; Fe l u.s.wee ve -ve 25 ee ll e led u.s. 2006, ee ://www.dll./x/e/nVca.d,. 32.

6 ued se see cee e Jdy sbee i, reee d Bde sey, see Bds, geel cel d se Ve pede, Lel d c-e a m c, e he: te Eieve i re h-slled i Dve E gw, Jly 26, 2011, vlble ://jd-y.ee.v/d/11-7-26%20s%20tey.d.

7 te s. Ee, te m E i sdy, m 2010,vlble ://ddv.yed./le/-_b-l.d.

8 see ://www.elye./le/e%20bdey%20

ee%20%20-lled%20%20e.d. i ebee ee d d h-1B , ly 182,000 ede u.s. llee d vee stEm eld wld lelyve eed e ued se ve e ed 2003-2007. teywld ve eed ly $13.6 bll 2008, ed e gDp by , d wld ve bed $2.7 $3.6 bll eedel ey.

i e bee ee d , xely 300,000h-1B v-lde we ey w z exedd 2003-2007 wld lely ve bee e ued se lbe 2008. tee we wld ve eed ly $23 bll 2008, ed e de d by , dwld ve bed $4.5 $6.2 bll e edel ey.

sl el e bed we lyz lel deedby ce d e l ew ye. F exle, de e-ble , e elx ee d ed e ceeve i re a 2006 ld ve

eed lb e d gDp by xely $34 bll e 10 ye llw ee d d e ve ee e bde $34 $47 bll ve 10 ye.

relx h-1B de e ceeve ire a 2007 ld ve eed lb e d gDp by$60 bll e e ye llw ee d ved eedel bde b le by $64 $86 bll ve 10 ye.

9 see Fle De i d cevee u.s. cbe cee F, ge te webe, vlble ://www.e.ed/ew/elee.l?d=70418.

10 u.s cze d i seve, h-1B Bee Fd &cle aee, (2008), vlble ://www..v/le/vede/h-1B_BFca_20e08.d ; p tbde,gley see p Jb h-1B al, Computer

World, seebe 29, 2009, vlble ://www.ewld.//le/9138674/gley_ee___jb__h_1B_l_?xyid=60; se c gley iw,gley W Ee ably h 1-B V p,ol ee, seebe 29, 2009, vlble ://ley.ee.v/ew/ale.?el_dpeiD_1502=23410.

11 Deb s, t t, he Eye h-1B abe, EE Times, J-y 2, 20 06, vlble ://www.eee./wale.

jl?leiD=175800119; kev Fy, Dee Lbode glble py B We h-1B Vl, eWee,obe 27, 2008, vlble ://www.ewee.///it-ie/Dee--Lb-ode-glblte--py-B-We--h1B-Vl/.

12 tee , eely eed e de yeed 2007, w e de de : 57 ee dl, 39 ee e, d 40 ee ll dedeee (b e dl d e be), ee ://

e.ed.v/b2009/2009020.d (ble 288 d 291); aleehle, te Bdey Ee h-slled i re,

tely ply ie, m 2009, vlble ://www.elye./le/e%20bdey%20ee%20%20-lled%20%20e.d, . 28.

13 id k. Bey d Wll B. slle, Elye-Bed i-: te F tee peeee, ae i Lwyea, eed Navigating the Fundamentals o Immigra-tion Law 89 (2009), vlble ://www.l./ce/del.x?dd=29972.

14 u.s. Dee se, n V ied by cl-, Fl Ye 2006-2010, vlble ://www.vel.e.v/d/FY10alre-tbleXVi_B.d.

15 us Dhs, oe i s, u.s. Lel pee re-de: 2010, m 2011, vlble ://www.d.v/xlby/e//bl/l__2010.d.

16 ild h1B, h1B1, h1c, L1, o1, d i V le. n- ad by cl ad, Fl Ye 1999 2008,vlble n V ied by cl, FlYe 2006-2010, vlble ://www.vel.e.v/d/FY10alre-tbleXVi_B.d.

17 ce ze 140,000 elye-bed v lly.axely 86 ee e v dvdl w ldbe -lled jb 10,000 e e de lw-lled. t e lde deede, weve, w ve-e e 1 e -lled . s e l be ed -lled we eev ee v wd 56,000.

18 8 u.s.c. se 101 ()(15)(h), (L), (o), d (J)

19 J heey, Blbe iv d E rdble.Vde vlble ://www.blbe./vde/77316400/.

20 Eu e lel ebl ble d, vlble ://www.dyex./ew/bleded.l; cd ve-e e ely w e -lled we,vlble ://w ww.l./10066101-d-e-e---lled-.l.

21 cl gde sl, Fd e 2011 cgs ie-l gde ad svey (2011), vlble www.e./l/0/d/r_ilad11_ii.d.


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31 cee ae pe | i iv

22 cl gde sl, Fd e 2009 cgs ie-l gde ad svey 2009, vlble ://www.e./l/0/d/r_ilad09_ii.d.

23 uc Beeley sl i , ae new iEeee, (2007), vlble ://e../d/ee__1_61207.d, .19.

24 u.s cze d i seve, h-1B Bee Fd &cle aee,. 13-15. see l, gvee a-bly oe, h-1B V p: re ae needed mzee r d c ce p (2011), vlble ://

www..v/d/gao-11-26.

25 nl Fd ae ply, aly: gao e dh-1B pel e pd cble sl u.s. pe-l, i Le d s ce, Jy 2011, .8,vlble ://www../d/h1BVdegaore-nFapplyBe-Jy2011.d.

ad e nFap, e gao ely e e uscise d 21 ee d e h-1B . te elleed 13.4 ee d d 7.3 ee el vl e elye exed, b e bele ly de e vde e e vlble e elye deed eelve e lle. nFap lde b e d d el vl e y be leely eeeve.

26 ibd.

27 m heb, V Fd s ae nwde, BusinessWeek,Feby 13, 2009, vlble ://www.bewee./bwdly/df/e/eb2009/db20090212_920784..

28 ibd.

29 p tbde, tbled h-1B d e ed qely, Com-puterworld, my 16, 2011, vlble ://www.ewld.//le/9216694/tbled_h_1B_d_e_ed_qely_.

30 ae Fede tee, i Ed: ce dceqee i el tee ree (2009).

31 seve clle, Le-sle V Fd alleed iy,Feby 25, 2011, vlble ://www.eew./2011/02/25/34452..

32 u.s cze d i seve, h-1B Bee Fd &cle aee.

33 p tbde, h-1B V p ude ieed Dhssy (cio, my 7, 2009), vlble ://www../le/492001/h_1B_V_p_ude_ieed_Dhs_s-y.

34 Dld neeld, h-1B V: De p mee eneed e u.s. Ey d u.s. We, tey bee ehe cee e Jdy, sbee i- ply d Eee, m 31, 2011, vlble ://www..v/uscis/ree/ce/tee/2011/ey_2011331_h-1B_neeld.d.

35 see Jdy cee, sbee i, re-ee d Bde sey, te E ieve Ei re, Jly 26, 2011, ee vlble ://

jdy.ee.v/e/e.?d=3d9031b47812de25923beb62beeb0.

36 al B. kee, tw Lb E ie ire (W: cee ae pe, al 4, 2006),. 1-3, vlble ://www.ee.//ee_-.d.

37 al B. kee, tw Lb E ie ire (W: cee ae pe, 2006), vlble ://www.ee.//ee_.d, .1-3.

38 see ry mll, i sed pey, a Few ceeve re, (2009) . 43.

39 Dhs, uscis, h-1B Fl Ye (FY) 2012 c se, obe 31,2011, vlble ://www..v/l/e//ee-.59bb9591935e666141765436d1/?vexd=4b7dd1d5d37210VVcm10000008260rcrD&vexel=735668112643210VVcm100000b9260rcrD. see l ina se 214()(1)(a), 214()(5)(c).

40 te l ed e al 1, 6 bee e zed de. new l v be lly bee vlble

obe 1, e dy e edel vee l ye.

41 a led dve x ble bee ebled exe e l l , b l-e l e ble. ://www..v/l/e//ee.59bb9591935e666141765436d1/?vexd=93d3dd8719110VVcm1000004718190rcrD&vexel=684397755b9010VVcm100000453d61rcrD

42 see n pl, te pl e h-1B V Fl Dedle,cle te g, m 16, 2009, vlble ://lee./ew/4270/e-l--1b-v-l-dedle.

43 see Elee Ze, h-1B V c: i c gw my B-e,Fortune Small Business, al 18, 2008, vlble ://ey../2008/04/16/be/_v_e.b/dex..

44 Dhs, uscis, uscis ree FY 2010 h-1B c, Deebe 22, 2009,

vlble ://ww w..v/l/e//ee.59bb9591935e666141765436d1/?vexd=1531638367b5210VVcm10000008260rcrD&vexel=684397755b9010VVcm100000453d61rcrD.

45 Dhs, uscis, uscis ree FY 2011 h-1B c, m 29, 2011,vlble ://ww w..v/l/e//ee.59bb9591935e666141765436d1/?vexd=7d9b91389d210VVcm10000008260rcrD&vexel=684397755b9010VVcm100000453d61rcrDm Jd, sls V p, The Wall Street Journal, obe 30, 2009,vlble ://le.wj./le/sB125677268735914549.l?d=WsJ__miDDLEtse.

46 myVJb, t 1000 h1B V d gee cd s, 2000-2009, vlble ://www.yvjb./t_V_s.x.

47 a v e bed e w ed e skiL

a bll, s. 1083, w ded e see 2007: ://.l.v/-b/qey/D?110:1:./e/~db9Wxn0:: teskiL a bll, weve, ly vded e-bed ee e l be, deee. i l dd ee yel.

48 us Dee se, Elye-Bed i V, vl-ble ://vel.e.v/v//ye/ye_1323.l3.

49 u.s. Dee se, V Blle, nvebe 2011, vlble ://vel.e.v/v/blle/blle_5572.l.

50 ibd.

51 Ely Bz, oy Fel slled i Exd, USAToday, seebe 21, 2009 , vlble ://www.dy./ew//2009-09-20-b-d-e_n.; Ely Bz,me e Wld tleed We o Leve usa, USA Today,

seebe 21, 2009, vlble ://www.dy./ew//2009-09-20-b-d_n.; Vve Wdw, i e u.s.Exee F B D? m 31, 2009, vlble ://www..de.ed/glblEee/d/ed/l-ewld/_exee.d;

52 s ade, kee tle i ae, (W: nlFd ae ply, obe 2011), vlble ://www../d/kEEping_taLEnt_in_amErica_nFap_o-be_2011.d.


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32 cee ae pe | i iv

53 ibd.

54 Jee h d mjle ge-Lelle, hw mDe i B iv?American Economic Journal:Marcroeconomics 2 (2) (2010): 31-56, vlble ://.z./d3921.d. see l, Vve Wdw e al, ae new iEeee( k cy: k Fd, 2007), vlble ://ele.l.beeley.ed/~/pe/ae_ew__eeee_i.d.

55 J key, rd L, d m udll, s. 565: su V a 2011, 112 ce, u.s. see, m 14, 2011, vlble

://www.v./e/bllex.xd?bll=112-565.

56 oly 5,000 ee edee v e vlble lly lw-lled we d be lde y deede. tey ll eevely ele be .

57 ne wle e e ve led - e e e e L-1 ey vee h-1B , ee e by e ie geel d b e l. see Dee held sey,revew Vleble d pel abe e L-1 V p-, Jy 2006, vlble ://www.d.v/x/e/v/oig_06-22_J06.d, . 10.

58 p Be, cd: a un te tle,The Globe and Mail,vlble ://www.elbedl./ew/ely/le796346.ee.

59 mel mdel, te rel c o, BusinessWeek, Je

18, 2007, vlble ://www.bewee./ze/-e/07_25/b4039001.;se e e Be weee be d dy by s he W.E. ujie Elye r ee eled Outsourcing, Ofshoring,and Productivity Measurement in U.S. Manuacturing, w be d e iel Lb revew (Vl. 146 (2007), n.1-2)i ed pDF e e y evew. hweve, ee de deedely by BusinessWeekel.

60 me klb mgee d c my, D id o-e me e h1-B V p? i Wee, my 19 ,2007, vlble ://www.wee./ew/lbl-//wale.jl?leiD=199602025.

61 r h, hq gewe pe oe, The AmericanProspect, a 5, 2007, vlble ://www.e.//le?le=w_ewe_e_.

62 r h, it te t ovel h1-B V, Business Week, al

2, 2009, vlble ://www.bewee./ze/e/09_15/b4126063331942.. t le by e sF cle 2006 B ae e elyee e elee d eevee y, e le e y e e ve

l e b de vde l. ://www.e./b/le.?le=/le/ve/2006/06/09/BugpJ-Ja66348.DtL t eel le e bje usa tdy(2004), de e y e. ://www.dy./ey/wle/2004-04-06-ele_x.

63 i dd ee jb , e ble w ee -lled we ve bee deed. a 2009 e by eae Fede tee, exle, debed eee be led bl l w lly be b-l elyee. tee ee wee ly d dlly belwe evl we d wee w e ey e ded

ee, b ey l ld be lely eld ble e . Eve we ee ee wee zed dwe eed, e ee e exed lly e e e we de be led. aeFede tee, i Ed: ce d ce-qee iel tee ree (2009).

64 se, W Lee.

65 s Llly, p Le B e u.s. Ey(W:cee ae pe, 2009), vlble ://www.ee./e/2009/01/d/llly_l.d.

66 rbe pll, Je hez, d hed ge-pele, te E- Bee ive cle Eey (W: cee ae pe, 2009), vlble ://www.e-e./e/2009/06/le_eey.l.

67 Ld Leve, crs re ce, cel ree

seve, Jy 23, 2007, vlble ://www.ll./ed_ee//rL31973-070123.d.

68 o e, dy dd e be deed. te de be fexble e ezedee e dd d e dee zed -e dee de.

69 Ld Leve, crs re ce, cel reeseve, Jy 23, 2007, vlble ://www.ll./ed_ee//rL31973-070123.d.

70 id e jb iy dW e b 1,000 we d e ued selly. te w le eeve h-1B v, ee ey weeed l 9,000 h-1B v 2006. al ee edlevdee v lde be d le e u.s. e e,ee evdee evve we dee d be. i-y d W e e e ll u.s. v d

jb by vd e le, w u.s. e bee bee e eve, d dw id - e wld be le u.s. e ldely ee l e.


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Immigration for Innovation