LABOR BASED IMMIGRATION: THE H-VISA PROGRAM AFL-CIO Cornell Institute for Public Affairs

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations H-1B Visa

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Program Components Application Process/Key Statutory Provisions H-1B Visa Cap Prevailing Wage The Importance of STEM Industries/Professions H-1B Department of Labor Department of Homeland Security Department of State Employer 1 Employer 2 Employer 3 Employer 4 Employer 5 Employer 6 Employer 7 Employer 8

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Main Issues Effects on the domestic labor market Lack of accurate and complete micro-data Descriptive studies Weak agency enforcement Decentralized program administration Little information-sharing by agencies H-1B

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Research Questions 1. Legislation In the form of a legislative bill, what changes should be made to the H-1B visa program? In particular, does past legislation provide a roadmap for future legislative remedies? 2. Auction System Would an auction system successfully address the problems previously identified with the quota cap system? Would such a system improve the fairness of outcomes for workers and improve efficiency in the labor market? 3. Agency Data Systems/Reforms in Data Reporting and Gathering Would more detailed, accurate, and more easily available data improve the ability of policymakers to: (1) capture the size and characteristics of the H-1B worker population; (2) estimate the program’s effects on the domestic labor market ; (3) detect fraud and misconduct; and (4) improve the program’s transparency? Should these reforms to data collection and reporting systems include a central data clearinghouse that each agency can freely use? H-1B

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Legislative Remedies H-1B Overview of Analysis: 115 Proposed Legislative Bills 2007 and 2009 Durbin bills Common Issues and Controversies Likelihood of Immigration Reform

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Policy Recommendations - Legislative Remedies Increase funding, investigative and enforcement powers of DOL Tri-Department Clearinghouse Data System Increase incentives and punitive measures Eliminate loopholes H-1B

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Auction Systems General goals common to auction systems: Improved labor mobility Increased negotiation leverage for workers Price signaling for policy makers Increased elasticity of labor supply and reduced labor market deadweight losses Systematic accounting for worker heterogeneity within professions H-1B

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Three distinct auction systems were considered: Employer-based system employers own visas visa prices are variable Employee-based system employees own visas visa prices are variable Employee-based system employees own visas wages paid are variable Auction System Models H-1B

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Employer-Based Auction System H-1B Employer Secondary Visa Market Secondary Visa Market

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Common Operational Features of Each Auction System Online auction (Ebay platform) Dedicated auction site Pre-determined quantity cap H-1B Visa: United States of America

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Employer vs. Employee-based Auction Systems H-1B Expected costs and expected benefits Lack of data and points of comparison Implementation

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Policy Recommendations - Auction System Create/Implement Pilot Programs o Employer-based o Employee-based Analyze Post-Pilot Metrics Finance further research of alternative auction systems H-1B

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Agency Data System Current Challenges Lack of transparency Lack of coordination Incomplete, inaccurate, or absent data Opportunity for fraud and dishonest practices

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Proposed Solution: Centralized Data System Department of Labor Department of Homeland Security Department of State Tri-department Clearinghouse H-1B

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Centralized Data System- Policy Recommendations H-1B Department of Labor Department of Homeland Security Department of State Tri-department Clearinghouse Annual Reporting Requirements Unique identifier Submitting W-2 information to the DOL Improve agency enforcement of labor standards Make information accessible for effective program analysis

Cornell University Cornell Institute for Public Affairs American Federation of Labor Congress of Industrial Organizations Conclusions/Summary of Findings Decentralized and severely incomplete data Limited & fragmented administration authority Inefficient visa cap Controversial prevailing wage determination H-1B