How Open Source Engineering Could Be Used To Recruit Top International Engineers Literature Review/The Impact of Skilled Foreign Workers on Firms: An Investigation of Publicly Traded U.S. Firms

The Impact of Skilled Foreign Workers on Firms: An Investigation of Publicly Traded U.S. Firms[edit | edit source]

Ghosh, A., Mayda, A. M., & Ortega, F. (2014). The Impact of Skilled Foreign Workers on Firms: An Investigation of Publicly Traded U.S. Firms (SSRN Scholarly Paper ID 2534712). Social Science Research Network. https://papers.ssrn.com/abstract=2534712

Abstract: Many U.S. businessmen are vocally in favor of an increase in the number of H-1B visas. Is there systematic evidence that this would positively affect firms' productivity, sales, employment or profits? To address these questions we assemble a unique dataset that matches all labor condition applications (LCAs) – the first step towards H-1B visas for skilled foreign-born workers in the U.S. – with firm-level data on publicly traded U.S. firms (from Compustat). Our identification is based on the sharp reduction in the annual H-1B cap that took place in 2004, combined with information on the degree of dependency on H-1B visas at the firm level as in Kerr and Lincoln (2010).The main result of this paper is that if the cap on H-1B visas were relaxed, a subset of firms would experience gains in average labor productivity, firm size, and profits. These are firms that conduct R&D and are heavy users of H-1B workers – they belong to the top quintile among filers of LCAs. These empirical findings are consistent with a heterogeneous-firms model where innovation enhances productivity and is subject to fixed costs.
Firms would like cap of H1B visas raised
H1B workers are critical and beneficial to R&D
Non-linear relation between H1B caps and firm outcomes, relate it to the case of Disney (Outsourcing), abusing H1B system
H1B caps are low currently
Ethic diversity leads to more productivity -> Denmark
Immigration concentration is not equal to ethic diversity
H1B worker benefits high tech firms more -> STEM
Subsets of firms will benefit if H1B caps are loosen

How Much Does Immigration Boost Innovation? American Economic Journal: Macroeconomics[edit | edit source]

Hunt, J., & Gauthier-Loiselle, M. (2010). How Much Does Immigration Boost Innovation? American Economic Journal: Macroeconomics, 2(2), 31–56. https://doi.org/10.1257/mac.2.2.31

Abstract: We measure the extent to which skilled immigrants increase innovation in the United States. The 2003 National Survey of College Graduates shows that immigrants patent at double the native rate, due to their disproportionately holding science and engineering degrees. Using a 1940-2000 state panel, we show that a 1 percentage point increase in immigrant college graduates' population share increases patents per capita by 9-18 percent. Our instrument for the change in the skilled immigrant share is based on the 1940 distribution across states of immigrants from various source regions and the subsequent national increase in skilled immigration from these regions. (JEL J24, J61, O31, O33)
Positive spillover from immigrants

Think different: Increasing online community participation using uniqueness and group dissimilarity[edit | edit source]

Ludford, P. J., Cosley, D., Frankowski, D., & Terveen, L. (2004). Think different: increasing online community participation using uniqueness and group dissimilarity. Proceedings of the SIGCHI Conference on Human Factors in Computing Systems, 631–638. https://doi.org/10.1145/985692.985772

Abstract: Online communities can help people form productive relationships Unfortunately, this potential is not always fulfilled: many communities fail, and designers don't have a solid understanding of why. We know community activity begets activity. The trick, however, is to inspire participation in the first place. Social theories suggest methods to spark positive community participation. We carried out a field experiment that tested two such theories. We formed discussion communities around an existing movie recommendation web site, manipulating two factors: (1) similarity - we controlled how similar group members' movie ratings were; and (2) uniqueness - we told members how their movie ratings (with respect to a discussion topic) were unique within the group. Both factors positively influenced participation. The results offer a practical success story in applying social science theory to the design of online communities.

The End of Money and the Future of Civilization[edit | edit source]

Greco, T. (2009). The End of Money and the Future of Civilization. Chelsea Green Publishing.==== Beyond Money: Toward an Economy of Well-Being. Psychological Science in the Public Interest====Diener, E., & Seligman, M. E. P. (2004). Beyond Money: Toward an Economy of Well-Being. Psychological Science in the Public Interest, 5(1), 1–31. https://doi.org/10.1111/j.0963-7214.2004.00501001.x

International migration, border controls and human rights: Assessing the relevance of a right to mobility[edit | edit source]

Pécoud, A., & Guchteneire, P. de. (2006). International migration, border controls and human rights: Assessing the relevance of a right to mobility. Journal of Borderlands Studies, 21(1), 69–86. https://doi.org/10.1080/08865655.2006.9695652

Abstract: This article discusses the arguments in favor of and against a right to mobility. It argues that contemporary migration and border policies are largely restrictive but still fail to meet their proclaimed objectives which call for alternative approaches to international human flows. From a human rights perspective, tight border controls are accompanied by major challenges; including trafficking, the asylum crisis, and the death and vulnerability of irregular migrants; which ultimately threaten the moral foundations of liberal democracies. In this context, a right to mobility may constitute a relevant answer and the article examines the implications of such a right in terms of world justice, social cohesion, economic wealth, security, and border/migration governance.
Non-liberalization is the exception
Cost of internal immigration control
Cost report from IMO (International Organization for Migration
Minimal protection of personhood
Benign neglect for employers
Tighter border control increase illegal business -> self-perpetuating -> leads to even tighter control
Free choice of employment
Immigration tend to stay permanently with strict policy
Development aid to poor country -> does not appear to be useful
Development itself does not improve equality, accept immigrants is more acceptable?
Border control reinforces racism? (P12, Hayter, 2000)
Free migration reduces flows (P12, Rodrik, 2002)
Smart borders other than barriers (P14, Andreas 2003)
Liberal immigration policy -> more attention on actual threats to security

Death at the Border: Efficacy and Unintended Consequences of US Immigration Control Policy[edit | edit source]

Cornelius, W. A. (2001). Death at the Border: Efficacy and Unintended Consequences of US Immigration Control Policy. Population and Development Review, 27(4), 661–685. https://www.jstor.org/stable/2695182

Abstract:

Redrawing the Line: Borders and Security in the Twenty-First Century[edit | edit source]

Andreas, P. (2003). Redrawing the Line: Borders and Security in the Twenty-first Century. International Security, 28(2), 78–111. https://doi.org/10.1162/016228803322761973<nowiki/

Migration of highly skilled persons from developing countries: Impact and policy[edit | edit source]

B. Lindsay Lowell, A. F. (2002). Migration of highly skilled persons from developing countries: Impact and policy - Synthesis report [Working paper]. http://www.ilo.org/global/topics/labour-migration/publications/WCMS_201706/lang--en/index.htm

Emigration stimulates sending countries (P6)
Migration policies to improve poorer countries (P11, DFID, 2000)
Flow of HQP generate HQP (P12, Mountford, 1997), stimulate domestic education
Brain waste
Policies promote return migration (P14, Haque and Kahn, 1997)
Remittance from expatriate in India (P15, Khadria, 2001)
Brightest stay permanent, least return (P17)
Failure of institution on educating and training, migrants limited to specific occupations (P20)
Business always tries to reduce their cost
International competitivity requires global mobility (P21)
Strengthen domestic education system in source countries (P24)
Policies to retain skilled worker (P24)
Encourage return migrants (P25)
Type J visa ensure workers return to source country (P25)
The UK Department of Health Guidelines on the International Recruitment of Nurses (1999)
Home country post job for potential return workers (P26)
Dual nationality and citizenship (P26)
Negative "head-hunting" effect (P26)
Bilateral agreement target shortage in receiving and surplus in source countries (P26) -> not good for short term?
Page numbers are for browser not the actual page number **
P28

Can A Brain Drain Be Good For Growth In The Source Economy?[edit | edit source]

Mountford, A. (1997). Can a brain drain be good for growth in the source economy? Journal of Development Economics, 53(2), 287–303. https://doi.org/10.1016/S0304-3878(97)00021-7

Abstract: This paper analyzes the interaction between income distribution, human capital accumulation and migration. It shows that when migration is not a certainty, a brain drain may increase average productivity and equality in the source economy even though average productivity is a positive function of past average levels of human capital in an economy. It is also shown how the temporary possibility of emigration may permanently increase the average level of productivity of an economy.

Fiscal Policy, Human Capital, And Canada-US Labor Market Integration[edit | edit source]

Wildasin, D. (2003). Fiscal Policy, Human Capital, and Canada-US Labor Market Integration (No. 889; IZA Discussion Papers). Institute of Labor Economics (IZA). https://ideas.repec.org/p/iza/izadps/dp889.html

Abstract: This paper analyzes some of the implications of North American labor market integration for fiscal policy. The economies of Canada and the US are both characterized by highly integrated internal markets for goods and services as well as for labor and capital, and subnational governments in both economies play an important role in the financing and provision of public goods and services, including higher education. Despite theoretical insights from traditional trade theory that suggest that "trade and migration are substitutes", labor markets in both the US and Canada exhibit substantial and persistent interregional migration, with gross migration rates that greatly exceed net migration rates, especially for highly-educated workers. High gross migration rates are consistent with the hypothesis that education contributes to skill-specialization and worker heterogeneity, and that mobility provides a form of insurance for investment in risky human capital. Mobility also constrains the ability of competitive governments to engage in redistributive financing of human capital investment, and recent trends in both the US and Canada reveal a diminishing level of financial support for public-sector institutions by subnational governments. The implications of labor market integration for the efficiency of resource allocation, for income determination, and for fiscal competition are important for evaluations of tax and education policies both at the subnational and at the international levels.

The Consequences Of Increased Labour Mobility Within An Integrating North America[edit | edit source]

Harris, R., & Schmitt, N. (2003). The consequences of increased labour mobility within an integrating North America. North American linkages: Opportunities and challenges for Canada, 313-52.

Abstractː

The Brain Drain: Curse Or Boon?[edit | edit source]

Commander, S. J., Kangasniemi, M., & Winters, L. A. (2003). The Brain Drain: Curse or Boon? (SSRN Scholarly Paper ID 422547). Social Science Research Network. https://papers.ssrn.com/abstract=422547

Estimating Development Effort In Free/Open Source Software Projects By Mining Software Repositories: A Case Study Of OpenStack[edit | edit source]

Robles, G., González-Barahona, J. M., Cervigón, C., Capiluppi, A., & Izquierdo-Cortázar, D. (2014). Estimating development effort in Free/Open source software projects by mining software repositories: a case study of OpenStack. Proceedings of the 11th Working Conference on Mining Software Repositories, 222–231. https://doi.org/10.1145/2597073.2597107

Enhancing Labor Mobility In ASEAN: Focus On Lower-skilled Workers[edit | edit source]

Orbeta, A. J. C. (2013). Enhancing Labor Mobility in ASEAN: Focus on Lower-skilled Workers (Working Paper No. 2013–17). PIDS Discussion Paper Series. https://www.econstor.eu/handle/10419/126934

Abstract: It is clear from data that worker movements in the Association of Southeast Asian Nations (ASEAN), like elsewhere, are dominated by unskilled and semiskilled workers. It is also well-known that movements of these types of workers are dominated by irregular migration mainly because of lack of avenues for legal migration for them (Abella 2006). Yet discussions either globally (within and outside GATS) and regionally such as under AFAS/AEC are all focused on professionals and highly skilled workers. This attitude continues even if both back-of-the-envelope and systematic calculations using general equilibrium models show that movements of workers, in general, and lower-skilled workers, in particular, are beneficial not only for sending but for host country citizens as well (Walmsley et al. 2007).The paper provides recommendations based on known initiatives/measures to facilitate freer labor movements in ASEAN. The focus is lower-skilled workers because existing discussion such as the ASEAN Economic Community (AEC) Blueprint does not yet cover them. To achieve this, the paper provides a description of (a) the policy and institutional arrangements, both at the national and regional level, that currently govern the cross-country labor movement within ASEAN for both skilled and unskilled workers; and (b) the analytical framework that supports the discussions in deriving the recommendations. The paper also pointed out that not only can existing arrangements be extended to cover lower-skilled workers but also that there are already experiences on these types of worker movements.

The Future Of Globalization. Cooperation And Conflict[edit | edit source]

HIRST, P., & THOMPSON, G. (2002). The Future of Globalization. Cooperation and Conflict, 37(3), 247–265. https://doi.org/10.1177/0010836702037003671

Abstract: This article considers the future of `globalization', conceived here as processes promoting international interconnectedness. Three questions are examined. First, is contemporary globalization unusual compared to past episodes such as 1850-1914? Then there was rapid growth in trade, capital flows and migration comparable to or greater than today. There was also a policy backlash and the widespread adoption of protectionist policies. Second, are contemporary globalization processes undermining national economies and thus hollowing out states? On the contrary, the major states are reinforced in their role of international actors. However, both the global economy and national governments will face crucial challenges during this century, the chief of which is climate change. Such changes will tend to foster conflict and thus reinforce the role of the state, but in a context where governance at every level will be harder to achieve. Third, is economic globalization likely to increase or decrease? Evidence about the effects of borders and the limits to trade expansion are presented, which indicate that we could be close to the limits of feasible globalization.

Green Card Problems Persist For High Skill Immigrants - NFAP Policy Brief[edit | edit source]

Anderson, S. (2012). Still Waiting: Green Card Problems Persist for High Skill Immigrants - NFAP Policy Brief (SSRN Scholarly Paper ID 2084209). Social Science Research Network. https://papers.ssrn.com/abstract=2084209

Abstract: Over the past several months, skilled foreign nationals have seen no improvement in their prospects for obtaining green cards and, in fact, wait times are likely to increase in employment-based immigration categories, according to a new report released by the National Foundation for American Policy (NFAP), an Arlington, Va.-based policy research group. An earlier analysis by the National Foundation for American Policy concluded (in October 2011) that wait times for employment-based green cards sponsored today can last 5 years or even decades, depending on the category and country of origin. And now, according to the U.S. Department of State, a wait time may be developing for prospective immigrants in the employment-based first preference (EB-1) category (outstanding researchers and professors, aliens of extraordinary ability), which previously had no backlog. Moreover, in another new development, skilled foreign nationals from countries other than China and India in the employment-based second preference (EB-2), for persons of "exceptional ability" and "advanced degree" holders, will soon experience backlogs. And for at least the rest of Fiscal Year 2012, the U.S. Department of State is not accepting new green card applications for nationals of China and India in the EB-2 category.

Feasible Globalizations[edit | edit source]

Rodrik, D. (2002). Feasible Globalizations (No. w9129). National Bureau of Economic Research. https://doi.org/10.3386/w9129

Abstract: The nation-state system, democratic politics, and full economic integration are mutually incompatible. Of the three, at most two can be had together. The Bretton Woods/GATT regime was successful because its architects subjugated international economic integration to the needs and demands of national economic management and democratic politics. A renewed 'Bretton-Woods compromise' would preserve some limits on integration, while crafting better global rules to handle the integration that can be achieved. Among 'feasible globalization,' the most promising is a multilaterally negotiated visa scheme that allows expanded (but temporary) entry into the advanced nations of a mix of skilled and unskilled workers from developing nations. Such a scheme would likely create income gains that are larger than all of the items on the WTO negotiating agenda taken together, even if it resulted in a relatively small increase in cross-border labor flows.
incentives for skilled workers to return (P25)

Globalisation, International Labour Migration And The Rights of Migrant Workers[edit | edit source]

Wickramasekara, P. (2008). Globalisation, International Labour Migration and the Rights of Migrant Workers. Third World Quarterly, 29(7), 1247–1264. https://www.jstor.org/stable/20455108

Abstract: The aim of the paper is to highlight the gaps between policy and practice in the current discourse on international migration and its links with development. It contends that a major cause of the limited development impact of migration is the 'closed door policy' of major destination countries on the admission of low-skilled migrant workers from developing countries. The paper addresses the weak foundations and major consequences of this policy: the denial of labour demand, channelling a large part of flows to irregular migration, consequent exploitation and violation of rights of migrant workers, and accelerated brain drain from developing countries. While there is increasing emphasis on temporary migration policies and programmes for low skilled labour, achievements on the ground have been quite limited. The movement towards a global migration regime which can address current pressing issues has also not progressed beyond broad consultative forums. There is an imperative needfor fresh approaches and bold initiatives to promote international labour mobility for the welfare of the global community.

The Effect Of The H-1B Quota On The Employment And Selection Of Foreign-Born Labor[edit | edit source]

Mayda, A. M., Ortega, F., Peri, G., Shih, K., & Sparber, C. (2018). The effect of the H-1B quota on the employment and selection of foreign-born labor. European Economic Review, 108, 105–128. https://doi.org/10.1016/j.euroecorev.2018.06.010

Abstract: The H-1B program allows skilled foreign-born individuals to work in the United States. The annual quota on new issuances of H-1B status fell from 195,000 to 65,000 in fiscal year 2004. This cap did not apply to new employees of colleges, universities, and non-profit research institutions. Existing H-1B holders seeking to renew their status were also exempt from the quota. Using a triple difference approach, this paper demonstrates that cap restrictions significantly reduced the hiring of new H-1B workers in for-profit firms relative to what would have occurred in an unconstrained environment. Declines were most pronounced at the top and bottom quintiles of the wage distribution. Restrictions did not reduce hiring of new H-1B workers from India, in computer-related occupations, or at firms using the H-1B program intensively.

H-1B Cap[edit | edit source]

H-1B Cap | Quota, Timeline, Premium Processing, Exemptions. (n.d.). SGM Law Group. Retrieved February 22, 2021, from https://www.immi-usa.com/h1b-visa/h-1b-cap/

America's New Immigrant Entrepreneurs: Part I[edit | edit source]

Wadhwa, V., Saxenian, A., Rissing, B. A., & Gereffi, G. (2007). America's New Immigrant Entrepreneurs: Part I (SSRN Scholarly Paper ID 990152). Social Science Research Network. https://papers.ssrn.com/abstract=990152

Abstract: This purpose of this research was to assess the contribution of skilled immigrants in the creation of engineering and technology businesses and intellectual property in the United States. We found there was at least one immigrant key founder in 25.3% of all engineering and technology companies established in the U.S. between 1995 and 2005 inclusive. We estimate that together, this pool of immigrant-founded companies was responsible for generating more than $52 billion in 2005 sales and creating just under 450,000 jobs as of 2005. This research shows that immigrants have become a significant driving force in the creation of new businesses and intellectual property in the U.S. and that their contributions have increased over the past decade.

Strengthening Wage Protections For The Temporary And Permanent Employment Of Certain Aliens In The United States[edit | edit source]

Strengthening Wage Protections for the Temporary and Permanent Employment of Certain Aliens in the United States. (2020, October 8). Federal Register. https://www.federalregister.gov/documents/2020/10/08/2020-22132/strengthening-wage-protections-for-the-temporary-and-permanent-employment-of-certain-aliens-in-the

Abstract: The Department of Labor (DOL or the Department) is amending Employment and Training Administration (ETA) regulations governing the prevailing wages for employment opportunities that United States (U.S.) employers seek to fill with foreign workers on a permanent or temporary basis through certain employment-based immigrant visas or through H-1B, H-1B1, or E-3 nonimmigrant visas. Specifically, DOL is amending its regulations governing permanent labor certifications and Labor Condition Applications (LCAs) to incorporate changes to the computation of wage levels under the Department's four-tiered wage structure based on the Occupational Employment Statistics (OES) wage survey administered by the Bureau of Labor Statistics (BLS). The primary purpose of these changes is to update the computation of prevailing wage levels under the existing four-tier wage structure to better reflect the actual wages earned by U.S. workers similarly employed to foreign workers. This update will allow DOL to more effectively ensure that the employment of immigrant and nonimmigrant workers admitted or otherwise provided status through the above-referenced programs does not adversely affect the wages and job opportunities of U.S. workers.

The Effects Of Labor Market Competition With Immigrants On The Wages And Employment Of Natives[edit | edit source]

Raphael, S., & Ronconi, L. (2007). THE EFFECTS OF LABOR MARKET COMPETITION WITH IMMIGRANTS ON THE WAGES AND EMPLOYMENT OF NATIVES: What Does Existing Research Tell Us? Du Bois Review: Social Science Research on Race, 4(2), 413–432. https://doi.org/10.1017/S1742058X07070233

Abstract: This paper provides an overview of the current debate among economists pertaining to the effects of recent immigration on the earnings and employment of native-born workers. Since much of this debate revolves around methodological differences in research design, we devote much of our effort to discussing the various strategies that researchers have used to isolate immigrant competition effects, and attempt to clarify the strengths and weaknesses of each strategy. Our overall assessment is that the central tendency of the research evidence suggests that recent immigration has had only a modest effect on the labor market prospects of native-born Americans. Some potential hypotheses that may explain this lack of a large impact are capital accumulation and the imperfect substitutability between natives and immigrants.
Minimum effect from foreign workers on locals

US Immigration Policy And The Case For Family Unity. Journal On Migration And Human Security[edit | edit source]

Gubernskaya, Z., & Dreby, J. (2017). US Immigration Policy and the Case for Family Unity. Journal on Migration and Human Security, 5(2), 417–430. https://doi.org/10.1177/233150241700500210

Abstract: As the Trump administration contemplates immigration reform, it is important to better understand what works and what does not in the current system. This paper reviews and critically evaluates the principle of family unity, a hallmark of US immigration policy over the past 50 years and the most important mechanism for immigration to the United States. Since 1965, the United States has been admitting a relatively high proportion of family-based migrants and allowing for the immigration of a broader range of family members. However, restrictive annual quotas have resulted in a long line of prospective immigrants waiting outside of the United States or within the United States, but without status. Further policy changes have led to an increasing number of undocumented migrants and mixed-status families in the United States. Several policies and practices contribute to prolonged periods of family separation by restricting travel and effectively locking in a large number of people either inside or outside of the United States. On top of that, increasingly aggressive enforcement practices undermine family unity of a large number of undocumented and mixed-status families. Deportations — and even a fear of deportation —cause severe psychological distress and often leave US-born children of undocumented parents without economic and social support. A recent comprehensive report concluded that immigration has overall positive impact on the US economy, suggesting that a predominantly family-based migration system carries net economic benefits. Immigrants rely on family networks for employment, housing, transportation, informal financial services, schooling, childcare, and old age care. In the US context where there is nearly no federal support for immigrants' integration and limited welfare policies, family unity is critical for promoting immigrant integration, social and economic well-being, and intergenerational mobility. Given the benefits of family unity in the US immigrant context and the significant negative consequences of family separation, the United States would do well to make a number of changes to current policy and practice that reaffirm its commitment to family unity. Reducing wait times for family reunification with spouses and children of lawful permanent residents, allowing prospective family-based migrants to visit their relatives in the United States while their applications are being processed, and providing relief from deportation and a path to legalization to parents and spouses of US citizens should be prioritized. The cost to implement these measures would likely be minor compared to current and projected spending on immigration enforcement and it would be more than offset by the improved health and well-being of American families.

The Impact Of Immigrants On Host Country Wages, Employment And Growth[edit | edit source]

Friedberg, R. M., & Hunt, J. (1995