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H-1B Visas: Building Americas IntellectualCapital

Scott Ornsorn2007@kellogg.northwestern.edu

MORS 450

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David is highly qualified but visa troubles areforcing him back to Ireland

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What is an H-1B Visa?

The H-1B visa was introduced in 1990 as a means of providinga visa application process for highly skilled and specializedworkers.

Allows U.S. companies to temporarily hire foreign workers who

have at least a bachelors degree or equivalent to fillspecialized jobs. 1

The number of H-1B visas issued in a given year is subject toa government regulated cap currently 65,000 with an

additional 20,000 for International Students at U.S.Universities. 2

1. U.S. Citizenship & Immigration Services, http://149.101.23.2/graphics/howdoi/h1b.htm

2. H1Base, www.h1base.com

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Historical # of visas granted in the U.S.

115,000

190,000

90,000

85,00

65,000

0

20,00040,00060,00080,000

100,000120,000140,000

160,000180,000200,000

H 1 - B

V i s a

C a p

s

1. H1Base, www.h1base.com

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e s ortage o - sas s cost ngcorporations money and depriving us of entrepreneurial leaders

U.S. Citizenship & Immigration Servicesreceived 123,480 eligible applications on[the first 2 days of availability] for 65,000H1B visas. 1 American Corporations are leaving over $1B

on the table every year due to H-1B visarestrictions. 2

More than half of professionals withdoctorate degrees in science andengineering under age 45 are now foreign

born.3

Indian and Chinese Entrepreneurs alone many who use H-1B Visas head 29% of Silicon Valleys businesses. 41. A Visa Squeeze for Foreign MBAs, BusinessWeek, May 14, 2007, www.businessweek.com

2. Recommendations for the H-1B Visa Policy in the United States, Kellogg School of Management, Authors: Bisht, Fedak,Nimmergut, Patel, and Starrett, May 30, 2006

3. Economists support entry of educated foreigners, Carolyn Lochead, San Francisco Chronicle, April 26, 2006, www.sfgate.com

4. How to Keep the People the U.S. Needs, BusinessWeek, March 2, 2004, www.businessweek.com

http://www.sfgate.com/http://www.businessweek.com/http://www.businessweek.com/http://www.sfgate.com/

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Technology industry leaders understand theimportance of immigration

"Unfortunately, America's immigrationpolicies are driving away the world's best andbrightest precisely when we need themmost. Bill Gates, Microsoft, March 7, 2007 1

When I look at Andy Bechtolsheim, who isemployee number one at Sun, and wrote theoriginal check to found Google , I dont look athim and think, Andy, you are a foreigner. Ilook at him and I say, you are one of the

greatest contributions to American commerceand the American way of life of anybody Isee. - Scott McNealy, Sun Microsystems,March 8, 2006 2

1. Gates to Senate: More Visas, BusinessWeek, March 8, 2007, www.businessweek.com

2. Immigration Crackdown Bad for Business?, FoxNews.com, March 8, 2006,http://www.foxnews.com/story/0,2933,187225,00.html

http://www.businessweek.com/http://www.businessweek.com/

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Justifications for curtailing intellectual capitalimmigration

These people are taking jobsfrom the average American

1. U.S. Visa Restrictions a Challenge for Educational Institutions , Graduate Management Admissions Council,May 3, 2007, http://www.gmac.com/gmac/NewsCenter/NewsCommentary/CSISVisaForum.htm

Justification RebuttalActually they are takinghighly specific jobs thatrequire a huge amount of education and expertise

jobs that the average American is not qualified for.

The best ambassadors wecould possible have are thestudents who come to thiscountry to study. -- FormerFBI and CIA Director WilliamWebster, May 3, 2007 1

Immigration will leave thedoor open to terrorism

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H-1B Visa Policy Recommendations

Immediately double the number of H-1B Visas available in 2007to 130,000Continue to funnel Visa application fees back into educationalscholarships.

From 1999 to 2006, employers paid more than $1 billion in H1B visa

fees1

These fees have funded more than 40,000 scholarships and grantsfor U.S. students in science and math, science programs for 75,000middle and high school students and provided training for 55,000U.S. workers and teachers 1

Eliminate the widespread practice of waiving the H-1B petitionform fee of $1,000 thereby generating even more scholarshipfunding

1. Economists support entry of educated foreigners, Carolyn Lochead, San Francisco Chronicle, April 26, 2006, www.sfgate.com

An expanded H-1B policy will infuse the workforce with greater technical

capabilities and entrepreneurial desires.Longer term, the revenue generated from the H-1B program will beinvested in the education of a new generation of engineers andentrepreneurs