alt Hacker NewsIs your main source of income investment in unlisted burgeoning tech companies? If not, you're arguing against your own wealth. Foreign labour depreciates the wages companies have to pay for employees. It has been shown again and again that concerning quantities of foreign labour is used exactly for that purpose, with no serious attempt whatsoever to try and get local talent. It doesn't have to be sinister, it's just what HR departments are used to doing again and again.
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The alternative, as we all know, is well educated people staying in their home countries and creating companies that compete globally, meaning more services will move overseas. I'm OK with that but I think we need to be honest with ourselves that in no way will reducing H1Bs (or similar) increase local wages or employment rates in the software sector.
Why "unlisted burgeoning tech companies"?? H1 Bs are going to big, publicly listed US companies. Which by the way, 60%+ of Americans own a stake in due to their 401ks, pensions, IRAs etc. So I think bringing in top talent from around the world could be really good for the average American.
Are you confident that globally uncompetitive wages are good for you long-term, though?
This might be very nice for some time, but if you "artificially" keep up local wage levels by limiting worker mobility you might set yourself up to lose the whole industry to lower wage countries (see e.g. European automotive sector).
> Foreign labour depreciates the wages companies have to pay for employees. It has been shown again and again that concerning quantities of foreign labour is used exactly for that purpose
That's a (citation needed) right there.
The literature on the matter finds little to no effects of immigration on local wages. See the literature review by Kerr & Kerr:
https://www.nber.org/system/files/working_papers/w16736/w167...
Key sentence in the conclusion: "The likelihood and magnitude of adverse labor market effects for natives from immigration are substantially weaker than often perceived. Within the large empirical literature looking at the effects of immigration on native employment and wages, most studies only minor displacement effects even after very large immigrant flows."
What you find in practice is both that immigrants accept lower wages, AND that local wages for natives are unaffected. Which happens because the labor market can generally take in the new labor comfortably.
Foreign labor helped build the very successful companies that have paid me extremely well.
Immigration adds to both supply and demand. It’s not at all clear that the effect should be suppressed wages.
Do you know what stops Microsoft from building an office in, say, Czechia, hiring all the same people who were previously able to get a US work visa/green card/etc. but are now unable to, for the same labour, and paying Czech rates rather than US rates?
Nothing. Nothing, past tense, stopped them: they already have an office there.