H-1B Visas: Building America’s Intellectual

Capital

Scott Orn
sorn2007@kellogg.northwestern.edu
MORS 450 1
David is highly qualified but visa troubles are
forcing 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 providing

a visa application process for highly skilled and specialized
workers.

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

have at least a bachelor’s degree or equivalent to fill
specialized jobs.1

 The number of H-1B visas issued in a given year is subject to

a 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.

200,000
190,000
180,000
160,000
H1-B Visa Caps

140,000
120,000 115,000
90,000
100,000
65,000
80,000
60,000 85,000
40,000
20,000
1.
0
H1Base, www.h1base.com
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 The shortage of H-1B Visas is costing
corporations money and depriving us of
entrepreneurial leaders
 U.S. Citizenship & Immigration Services
received 123,480 eligible applications on
[the first 2 days of availability] for 65,000
H1B visas.1
 American Corporations are leaving over $1B
on the table every year due to H-1B visa
restrictions.2
 More than half of professionals with
doctorate degrees in science and
engineering under age 45 are now foreign
born.3
 Indian and Chinese Entrepreneurs alone –
many who use H-1B Visas – head 29% of
Silicon
1.
Valley’s businesses.4
“A Visa Squeeze for Foreign MBA’s”, 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 5
 Technology industry leaders understand the
importance of immigration
 "Unfortunately, America's immigration
policies are driving away the world's best and
brightest precisely when we need them
most.” – Bill Gates, Microsoft, March 7, 20071

 “When I look at Andy Bechtolsheim, who is

employee number one at Sun, and wrote the
original check to found Google, I don’t look at
him and think, Andy, you are a foreigner. I
look at him and I say, you are one of the
greatest contributions to American commerce
and the American way of life of anybody I
see.” - Scott McNealy, Sun Microsystems,
March 8, 20062

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 6
Justifications for curtailing intellectual capital
immigration

Justification Rebuttal
 These people are taking jobs  Actually they are taking
from the average American highly specific jobs that
require a huge amount of
education and expertise –
jobs that the average
American is not qualified for.
 Immigration will leave the
door open to terrorism  “The best ambassadors we
could possible have are the
students who come to this
country to study.” -- Former
FBI and CIA Director William
Webster, May 3, 20071

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
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 H-1B Visa Policy Recommendations

 Immediately double the number of H-1B Visas available in 2007

to 130,000
 Continue to funnel Visa application fees back into educational
scholarships.
– From 1999 to 2006, employers paid more than $1 billion in H1B visa
fees1
– These fees have funded more than 40,000 scholarships and grants
for U.S. students in science and math, science programs for 75,000
middle and high school students and provided training for 55,000
U.S. workers and teachers1
 An expanded H-1B policy will infuse the workforce with greater technical
 Eliminate the widespread practice of waiving the H-1B petition
capabilities and entrepreneurial desires.
form fee of $1,000 – thereby generating even more scholarship
 Longer term, the revenue generated from the H-1B program will be
funding in the education of a new generation of engineers and
invested
entrepreneurs

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