Ronald Bailey, shouldn’t you talk to displaced American Workers before talking down to us?

A good place to start would be at the following facebook group where you will find Indians and Americans alike discussing and cussing the H-1B program and the destruction it has caused to their future employment prospects.

If you’re wondering if I personally have any skin in this game, my story can be found at the following link:

But the larger question is, how does the H-1B program affect the employment and wages of American citizens? Actually the program raises native worker wages and has no significant effects on native employment according to three economists in their 2014 National Bureau of Economic Research working paper. There was one downside – the inflow of H-1B workers into a city tends to raise the cost of housing. From the study:

We find that a one percentage point increase in the foreign STEM share of a city’s total employment increased wages of native college educated labor by about 7-8 percentage points and the wages of non-college educated natives by 3-4 percentage points. We find non-significant effects on the employment of those two groups. These results indicate that growth in STEM workers spurred technological growth by increasing productivity, especially that of college educated workers. They also experienced increasing housing rents, which eroded part of their wage gain.

Additionally, a 2016 survey of 900 tech innovaters by the Information Technology and Innovation Foundation found that …

…immigrants comprise a large and vital component of U.S. innovation: 35.5 percent of U.S. innovators were born outside the United States. Another 10 percent of innovators have at least one parent born abroad. Over 17 percent of innovators are not even U.S. citizens, yet are nonetheless making in valuable contributions to U.S. innovation. Immigrants born in Europe or Asia are over five times more likely to have created an innovation in America than the average native-born U.S. citizen.


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