Comment by Taek
16 hours ago
That seems like a fair way for the free market to address things, no? If you need special carve outs, create a new type of Visa for those special cases.
The immigrants are all going to be paying taxes on their earnings. If you can boost H1B salaries by an average of $20k/yr by doing a price auction, that brings govt revenue and maybe even gives opportunities to balance the budget by creating more H1B slots.
I don't think it's that fair. IT jobs are exceptionally well paid and this system may starve other domains of talent, domains that don't have that kind of fuck-it money that IT has.
But I agree rhat H1B should not be about hiring cheap labour. I'd prefer a system where H1B salaries must be competitive with the top of the field. There are incredibly smart talents around the world, and if you hire someone from outside then it should be because they are the best of the best, so they should get paid accordingly.
What do you mean “fair”? What happens in the years/decades between when this hypothetical system is enacted and when the US can train up sufficient workers to substitute the labor force we currently have with H1-B?
Your proposal will mean 99% of all of the H1-B allocation will go to hedge fund quants and 1% maybe go to an AI researcher, but all of the materials science (eg. Cutting edge battery tech), semiconductor fabrication, neuroscience, pharmaceutical research etc will have to go without the skilled workers they currently get from visas. This is a recipe for the Boeingization of the US economy.
exactly wrong. Americans are dissuaded from going into these highly skilled fields because anyone talented enough to do those things realizes they can make much more building SAASes or working on wall street.
the Boeingization of the economy is mbas and bean counter middle management realizing that an H1-B is much cheaper than a citizen and opting to buy that labor, even if it's worse quality. as management, you put an ass into a seat, so job accomplished, here's your accolade.
Are there 85,000 new hedge fund quants that need to be hired each year? I guess it is more like 1,000. The number of people employed as quants at hedge funds is incredibly small.
> Your proposal will mean 99% of all of the H1-B allocation will go to hedge fund quants and 1% maybe go to an AI researcher, but all of the materials science (eg. Cutting edge battery tech), semiconductor fabrication, neuroscience, pharmaceutical research etc will have to go without the skilled workers they currently get from visas. This is a recipe for the Boeingization of the US economy.
If they're that necessary, let companies hire them on green card visas.
Or... those other parts of the economy increase salaries for skilled labor?
If we can only bring 85,000 people into the country on one type of visa, doesn't it make sense to prioritize those that will bring the most value (tax revenue, in this case)?
And if that's not enough people... raise the limit? And be confident that a raised limit is still keeping a high quality bar on entrants?
Option 1: you give a visa to a quant with 2M/y today’s salary
Option 2: you give a visa to a PhD to work for 150k/year in a small biopharma startup that thinks it has the solution to cancer.
This salary stacked ranking optimizes for today’s worth of work. Not its potential.
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You could make multiple pools, having separate ones carved out for research and advanced technology.
A lot of H1Bs are not working on anything you described though.
"materials science (eg. Cutting edge battery tech), semiconductor fabrication, neuroscience, pharmaceutical research "
This is a beautiful fantasy for H-1B, that is totally disconnected from reality. What is that 1% of the H-1Bs currently? It is mostly IT and software slop jobs.
Here are the top 40 employers, it isn't going to hurt research in the US to cut them to zero.
Amazon.Com Services
Cognizant Technology Solutions
Ernst & Young
Tata Consultancy Services
Google
Microsoft
Infosys
Meta Platforms
Intel
Hcl America
Amazon Web Services
IBM
Jpmorgan Chase
Walmart
Apple
Accenture
Capgemini
Ltimindtree
Deloitte Consulting
Salesforce
Qualcomm
Tesla
Amazon Development Center
Wipro
Fidelity Technology Group
Tech Mahindra
Compunnel Software Group
Deloitte Touche
Mphasis
Nvidia
Adobe
Bytedance
Goldman, Sachs
Cisco
Linkedin
Pricewaterhousecoopers Advisory Services
Paypal
Ebay
Servicenow
Visa USA
For non-slop jobs, give them a green card and fast track to citizenship. For an IT consultant, no thanks.
source: https://www.myvisajobs.com/reports/h1b/
Intel H1Bs are engaged in semiconductor research.
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This is just an argument against allowing the market to set wages, which you could make if you wanted to but it is not a strong one.
Yes and no. That's going to benefit wall street, at the expense of R&D labs where PhD researchers are paid in whip lashes.
Can we really consider it the free market when there are already so many regulations in place?
I don't think the "free" in free market is supposed to mean no rules. I think the "free" is supposed to mean both sides of the transactions get to choose to participate or not which means they are pressured to "meet in the middle" and optimize for mutually beneficial deals. The idea is that this is going to provide better outcomes than trying to plan out what everyone makes and buys from the top.
Overregulation can reduce the effective freedom in a market (usually by increasing costs or reducing choice) but good regulation is there to shepherd this equilibrium of a fair deal between buyers and sellers by doing things like getting externalities priced in (if youre buying x you should pay the cost of x, not your neighbor); preventing monopolies, cartels, other price fixing / choice reducing things that makes one side of the market not have to meet in the middle; and adding standards or visibility so market participants can be more efficient and safe when choosing (instead of having to do things like research all of a company's supply chain and employees to decide if it's safe to eat there or to fly in their planes).
Some things get imposed onto the market intentionally like protection for unions (in theory an alternative/shortcut to grouping up into inefficient passthrough companies), tarrifs to give someone an advantage in what they can offer, subsidies to intentionally prevent the market from contracting to the current size of demand (like if the country wants to maintain a certain ability to produce food or doctors or certain goods), and government programs to effectively set a floor on the price of something (like interest rates so lending/borrowing will never be worse than a certain mark).
All these things are useful tools in a market of self motivated actors trying to maximize their own gain in the short term but, like all tools, they get abused and out maneuvered often so it's a constant game of cat and mouse to keep the system running.
Pros and cons all over the place; most things have a huge downside of vulnerability to truly bad actors having too much control (which is where the idea of democracy comes in but I have to stop myself I already word dumped).
tl;dr yes absolutely call it a free market until people are forced to participate too much