Saturday, July 27, 2013

The Bogus High-Tech Worker Shortage: How Guest Workers Lower US Wages

By Hal Salzman, B. Lindsay Lowell and Daniel Kuehn

Paul Solman: A battle rages in economic policy circles: Should America make its borders more open to high-tech guest workers, or should we batten the hatches? Even those who oppose totally open immigration often support temporary guest worker visas, known as H-1B work visas, for high-tech.
 
But some oppose them, arguing that -- as in other industries -- workers from abroad undercut the wages of those domestic workers who would otherwise do the jobs here in America.

Today we present the case against high-tech guest workers from a trio of academic researchers associated with the Economic Policy Institute. Hal Salzman is a professor at the John J. Heldrich Center for Workforce Development and the Edward J. Bloustein School of Planning and Public Policy at Rutgers University. B. Lindsay Lowell is director of policy studies at the Institute for the Study of International Migration at Georgetown University. Daniel Kuehn is an adjunct professor and doctoral candidate in American University's department of economics.

Thursday, a former guest worker, now Silicon Valley guru, responds.

Salzman, Lowell and Kuehn: When Bill Clinton was president, wages for American IT workers were climbing and American students were clamoring to become computer scientists. Fifteen years later, average real IT wages are no higher. It is no coincidence that high-tech industries are now using guest workers to fill two-thirds of new IT jobs.

And now they're asking Congress to provide them with an even greater supply of guest workers -- a supply that by the IT industry's own estimates would equal 150 percent of the expected number of new IT jobs each and every year going forward. With its passage of the comprehensive immigration reform bill, the Senate has complied, putting out a sign for IT jobs that says, "We prefer guest workers."

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