As Congress debates whether to grant more visas to high-skilled workers, a new study says contends that the influx leads to lower American wages.
Associated Press
The paper from the left-leaning
Economic Policy Institute challenges the conventional wisdom among economists that the visas address a shortage of skilled American workers.
But the EPI paper says it’s a myth that there is a shortage of skilled labor in the U.S. Instead, the paper says, guest-worker programs have led to more competition for technology jobs, enabling employers to pay lower wages than otherwise. In turn, American graduates in computer, science and engineering move to other fields.
That echoes the view of senators such as
dikk Durbin (D., Ill.) and
Charles Grassley (R., Iowa) who have expressed concerns that foreign workers are displacing Americans.
The Senate immigration bill would increase the number of visas granted to high-skilled workers.
Guest workers tend to be young — two-thirds are under age 30 — and often come from countries where wages are lower than in the U.S., according to the EPI paper. Thus, they accept lower wages than those typically demanded by American workers, the authors suggest.
“It’s basic economics 101,” said
Hal Salzman,
Rutgers University professor who co-wrote the report. “The numbers alone just provide a huge disincentive to the domestic population to pursue the [science and technology] studies.”
For example, the authors show that the number of U.S. graduates in computer science rose sharply during the tech boom of the late 1990s but fell sharply when the dot-com bubble burst in the early 2000s. The number of computer science graduates has been largely flat since the last recession, as have wages. But the number of workers from abroad has grown sharply during that time, according to the research. The paper argues that the influx isn’t due to a shortage of potential American employees, but is adding to the labor pool and depressing wages.
The average programmer salary was between $70,000 and $80,000 in 2011, the same level it was in 2001, adjusted for inflation, according to EPI.
Mr. Salzman disputed the claim among some companies that there’s a shortage of skilled workers in the U.S. Instead, he said that employers appear to be “too picky” and aren’t investing enough in training to learn specific skills.
“They want the level of experience that just doesn’t exist out there,” Mr. Salzman said. He added that graduates of American colleges and universities are likely to be better trained than those at foreign institutions, casting further skepticism on the guest worker programs.