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Visa. Priceless

April 1, 2009

It’s April 1st but apart from being an excuse for a lot of weak mildly humorous blog entries, today is also the day that applications for H-1 visas opens. And probably closes based on historical precedent.

The current downturn has lead to renewed focus in the H-1B visa cap, not to mention xenophobic restrictions slipped into the TARP bills to make the US even less welcoming. As I said in my previous entry about immigration, I think we have the worst of all worlds right now. The caps are so low that companies cannot use H-1 visas to hire talented people from overseas to work for them, they have become only a way for Asian subcontractors to get people in the to country and nothing much else. The entire year’s supply of visas goes in a day so the old model no longer works. It is no longer possible to find a talented person overseas, hire him or her, get a visa and set the start date a few weeks later. That is how I came to the US in the early 1980s. Now, the only model that works for a person like that is to hire them onto your overseas subsidiary (so don’t be a startup or you won’t have one) and after they have worked for a year it is possible to transfer them on an L-1 visa.

But people always tend to focus on the lowest level people and debate whether or not a person with an H-1 visa is taking a job away from an equally qualified American. In the old days the answer was certainly “no”, but now I’m not so sure. They are for sure taking a job away from an almost certainly more talented overseas employee who cannot get hired under the current visa system and who would be an unquestionable gain to the US as an immigrant.

However, immigrants create a lot of jobs for Americans too by their skill at founding or managing companies. In EDA, for example, Aart de Geus (CEO of Synopys) came from Switzerland, Lip-Bu Tan (CEO of Cadence) came from Singapore, Rajeev Madhavan (CEO of Magma) came from India. As far as I know, Wally Rhines (CEO of Mentor) is American born and bred. Some other sizeable EDA companies with immigrant CEOs are Attrenta (Ajoy Bose from India), Apache (Andrew Yang from China), Sequence (Vik Kulkarni from India), VaST (Alain Labatt from France), Virtutech (John Lambert from England).

I’m guessing that most of the immigrants originally came to this country either as students (so on an F-1 visa) or on an H-1 visa. Today we make it much too hard for the next generation of talented individuals overseas to come here and stay.

I think that over the next few years the problem with the US just as likely to be immigrants leaving the country, especially to return to India or Taiwan/China. This is already happening to some extent. Growth there is more attractive than here, and the infrastructure in the US for starting a business, thought better, is no longer so superior to everywhere else.

I think that the US’s capability to absorb talented individuals and make them successful is a competitive advantage no other country has. Everyone else must love the way we are handicapping ourselves these days. We are our own April fool joke, but not even mildly humorous.

Posted by Paul McLellan on April 1, 2009 | Comments (8)

April 7, 2009
In response to: Visa. Priceless
EDAGuy commented:

(The comment system chopped off half my comment. Let me try again...) People who care about attracting the best and brightest talk about increasing immigration. People who care about having a cheap and compliant workforce talk about increasing the number of H-1B visas. Look, @Hmm has a point. If the problem is not enough engineers, then there are a variety of solutions: more H-1Bs; easier access to green cards; cracking down on H-1B fraud and abuse; a new type of visa; really trying to get native-born American college students to study engineering; making a serious effort to employ older engineers. And, of course, higher salaries across the board. So when employers put all their energy exclusively into "more H-1Bs" and dismiss the rest of the solutions out-of-hand, I find it easy to conclude that "cheap and compliant" is the real goal.


April 7, 2009
In response to: Visa. Priceless
EDAGuy commented:

People who care about attracting the best and brightest talk about increasing immigration. People who care about having a cheap and compliant workforce talk about increasing the number of H-1B visas. Look, @Hmm has a point. If the problem is not enough engineers, then there are a variety of solutions: more H-1Bs


April 5, 2009
In response to: Visa. Priceless
GC commented:

Green cards take about 5-6 years for a MS student from india/china or 8-10 years if not having a masters degree.


April 4, 2009
In response to: Visa. Priceless
Hmm commented:

Then fix the green card process! Or change the H1 so that it is not bound to a single employer though still keeping the time limit. The H1 process as is will always be viewed with great suspicion by most engineers and most of the public because its rules clearly benefit only corporations and apparently at the expense of existing citizens.


April 3, 2009
In response to: Visa. Priceless
Paul McLellan commented:

Hmm, green cards take about 2 years to get approved, if they get approved which is harder if you are not already here on an H-1 visa.


April 3, 2009
In response to: Visa. Priceless
Hmm commented:

Why so much fuss over H1 visas? Why don''t companies pay for green cards? The truth of the matter is that an H1 visa employee is stuck to a particular company and has absolutely no leverage. Consequently his salary (despite what all companies claim) will be lower than the true going rate for that job. H1 visas are a way of lowering engineering costs. Conversely, with a green card, the playing field is levelled. If the job underpays or sucks, the employee is free to find employment elsewhere. Thus color me cynical on all the lamentation about the low number of H1 visas. It has nothing to do with bringing in talent


April 2, 2009
In response to: Visa. Priceless
IanP commented:

In the UK we have long taken in many immigrants, over recent decades especially from Asia. Many come apparently without skills and we bemoan this fact. In the past five years or so we have been more restrictive, developing a bit of the ''fortress US'' style of border control. The result - even in a depression (yes that is the right word) we have a critical skills shortage. Medical, technological and entrepreneurial. Worst of all for us English is the shortage of good Indian / Pakistani / Chinese chefs. Asian food, especially curry is almost a staple of the UK diet, and for some months now our local curry houses in the North West of England have been unable to retain / hire good cooks. Prices have risen, quality fallen and restaurants/takeaways have closed. The point is not a complaint about food but much more important one. When you restrict the free flow of people / send "illegals" home or impose border controls you don''t understand how your own ecenomy will suffer. The ''flood'' of mexicans complained about by the average US citizen is really an endless supply of hard working labour that has kept your economy afloat for generations, kept costs low and given you the lifestyle that you demand. Poor, prepared to work for minimum wages they may be, but just remember who it was 200 years ago that drove the hispanic people into poverty as you stole their lands, ranches and property throughout California, Texas, New Mexico etc. and forced them into the southern deserts of Mexico. We in the UK have nothing to boast about from our empire building days, but we are now making the mistake of copying your closed border policy.


April 1, 2009
In response to: Visa. Priceless
Meredith Poor commented:

Immigrants from Mexico, China, India, etc. come with nothing, and start buying houses, cars, furniture, electronics, and clothes. That''s the good part. They also send their kids to school, get sick, and in some cases have on-the-job injuries. The idea that some border makes any difference at all is silly: what would happen if we decided to draw a line down the Mississippi river and require a permit to move from one side to the other? This might create more jobs, but they would be lower paying and less productive use of talent. As you keep creating more boundaries, you further dissipate the best use of labor. This would be a good explanation of the kind of stuff happening in Europe.

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