Laken Riley Act – the controversional provision

The Laken Riley Act, passed by the House of Representatives and being considered by the Senate, is an act that does little to change immigration law. But there are two expansions of the existing law.  One, the Homeland Security “shall” [i.e. must] detain an unauthorized person in the event they are “charged with, is arrested for, is convicted of, admits having committed, or admits committing acts which constitute the essential elements of any burglary, theft, larceny, or shoplifting offense.”  That is, they cannot be released pending further legal action, but must be detained, even for shoplifting.

Two, the law grants a state Attorney General standing to file suits to enforce certain provisions of existing law if an unauthorized person within that state commits a “harm” as defined by law. A state Attorney General can get a court to require Homeland Security to apply a power already in place, which is to deny the issuance of all visas to a that person’s country if that country tends not to accept their citizens subject to deportation. At this time, these countries include China, India, Venezuela, Cuba, Ethiopia, Eritrea, Pakistan, Russia and Somalia.  For example, if an unauthorized person in Texas who is a citizen of Ethiopia falls within the scope of this law, the Attorney General of Texas can through a court stop all visa issuance for persons from Ethiopia.

The second of these provisions is what is controversial.

 

 

Do immigrant workers create, complement, or displace?

In a modern economy, the dynamics between immigrant and native born workers is so complex that it cannot be reduced to an all-inclusive, simple sum without eliminating 90% of meaningful insight.  Thus, to say that overall immigrants add jobs, do not affect native workers, or compete with native workers is to engage in vast simplification.

Cauimi and Peri came perilously close to vast simplification in a study they released in early 2024. Giovanni Peri is a star academic researcher on immigration who has for some time argued that immigration overall is neutral or positive in its effect on native born workers.

They explain their findings through the concept of complementarity: Immigrants and U.S.-born workers often have different skills and specializations that complement each other rather than compete directly. This complementarity boosts productivity and, in turn, wages for U.S.-born workers. Since 2000, there has been an increase in college-educated immigrants, which has further enhanced the complementary effect, especially benefiting less educated U.S.-born workers.

Pretty much all academic research into the economic impact of immigrants on American workers relies on correlation analysis that deals with association, not cause. Further, these analysis address employment and wages, but not productivity, the investment decision, job switching, career switching, or domestic migration. Nor do they deal with the secondary effects. These analyses cannot capture the possibility that immigrants concentrate on geographic locales and occupations where they perceive substantial growth requiring new workers.

An example of immigrant impact which has a very rich story that is lost in statistical analysis typically done is the independent motel industry. About 60% of all hotels in the US are owned by Indian Americans, and this group may own at least 80% of all motels in small towns.   I addressed this phenomenon here.   At the core of this story is the evolution of a business model crafted by Indian immigrants that facilitated the voluntary purchase/sale of motels and hotels from native owners, and which preserved the viability of thousands of motels in the country.

Bernie Sanders on H-1B

Senator Bernie Sanders issued a statement on January 3, “We need major reforms in the H-1B program.” The full statement is here.

Sanders argues that the H-1B visa program is exploited by corporations to replace well-paid American jobs with low-wage foreign labor. He says, “We must utilize this program as a very short-term and temporary approach“ to meeting workforce needs.  He advocates for reforms like raising minimum wages for guest workers and enabling them to switch jobs.

Sanders statement reflects persistent blinkered political thinking about immigration, and exposes the vulnerability of the Democratic Party to a major attack from Republicans. For one, he implicitly buys into the idea that for the most part bringing a worker in on a temporary basis means an American loses a job. I doubt he would say that when addressing the hundreds of thousands of temporary farm workers who come in from Latin America.

Further, he does what virtually every politician does when addressing immigration, which is to think in the extremely short term with no consideration of intermediate, much less long term, workforce needs.   No national Democratic politician, from what I read has come forward with a proposal on how to draw upon the huge talent pool in the world to complement, not replace, American workers.

Republican senators are, I believe, ready to come forward with a comprehensive immigration bill that would feature skilled labor, and defend this approach using a intermediate and long term vision of how to maintain a highly productive workforce. I have zero factual knowledge that such a bill is in the works. I am interested in how Sanders would respond to such a proposal.

How the AMA influences physician immigration

In 1970,10% of practicing physicians were graduates of foreign medical schools (IMGs). In 1985, 22% of practicing physicians were. In 2019, some 230,000 active physicians graduated from international medical schools, accounting for 25% of the total active physician workforce.

Who controls the flow of MDs from abroad? The AMA effectively influences the flow of foreign-born doctors (very roughly = graduates of IMGs. Over 80% of IMGs are non-U.S. citizens).  In contrast, foreign born workers are a quarter of computer science workers but their employers have far less influence over the overseas supply of computer science workers.

Let’s say that the AMA wants to increase the supply of MDs by 10%. How would it make that happen?

Easing International Medical Graduates integration:  The Educational Commission for Foreign Medical Graduates (ECFMG) could streamline its certification process for IMGs, making it easier for qualified foreign-trained doctors to practice in the U.S.. This could quickly boost the physician workforce, given as IMGs already constitute about 25% of the U.S. physician workforce. The AMA and ECFMG are separate organizations.  But the AMA’s influence as a leading voice in American medicine ensures that its perspectives are considered in shaping ECFMG.

Increase Medical School Enrollment: The AMA could advocate for expanding enrollment in existing medical schools and support the establishment of new medical schools. This would directly increase the number of U.S. medical graduates entering the workforce.

Support for Residency Programs: Lobbying Congress to increase funding for residency programs would be crucial. The AMA has already urged Congress to remove caps on Medicare-funded residency slots. Expanding residency positions is essential, as it’s a bottleneck in physician training.

State-Level Initiatives: Advocating for more states to follow Tennessee’s example of lowering barriers for IMGs could significantly expand the talent pool.

Policy and Regulatory Changes: The medical community could push for the passage of bills like the Resident Physician Shortage Reduction Act, which aims to increase Medicare-supported residency positions.

Promoting the use of telehealth could help extend the reach of existing physicians, effectively increasing the supply of medical services.

 

In sum, the AMA has far more concentrated and effective influence over the flow of physician immigration then does Silicon Valley over computer science, and manufacturers over engineering immigrants.

Immigrant parents have higher educational expectations for their children

A study done in 2016 sought to compare the K-12 education experience of children of foreign-born parents with children of U.S. born parents.

The base line economic profile of these households shows that immigrant households overall have lower economic status (though there is the hour glass effect of relatively many immigrant households with little formal education and at the other end a concentration of highly educated immigrants).

The proportion enrolled in charter schools was twice as large among students of immigrant parents as among those with native parents: 12% versus 6%. On the other hand, the proportion enrolled in private schools was only about half as large: 6% versus 10%.

The proportion of students earning “mostly A” grades was 51% among students with immigrant parents and 48% among those with native-born parents. The proportion of parents contacted by their child’s school, due to a learning problem the child was having, was 16% in the immigrant group, versus 22% of U.S.-born parents who had been similarly contacted. The proportion of students diagnosed with a psychological or physical disability was 14% in the immigrant parent group, versus. 24% so diagnosed in the native-born parent group. The study notably did not address if immigrant parents were more concerned about stigmatizing their children.

The proportion of parents contacted by their child’s school, due to a conduct or disciplinary problem the child was creating, was 12% in the immigrant group versus 17% of U.S.-born parents who had been similarly contacted. The proportion of students who had ever been suspended or expelled from school was 4% versus 7%.

The study reported that immigrant children are more likely to live in two parent households.

91% of immigrant parents expected their children to get a college degree, which was significantly higher than the 72% of native parents.  57% of immigrant parents expected their children to get graduate or professional degrees, versus 36% of native parents. Students with immigrant parents who expected them to get graduate or professional degrees were more likely to get A’s in school than those whose parents had lower expectations (57% versus 34%). This was the case even after adjusting for the parents’ education level and family income, the student’s grade level and sex, and whether the student lived with two married birth parents.

Roadblocks to mass deportation

The Wall Street Journal’s Michelle Hackman and Tariri Parti posted an article in the first few minutes of the new year which explains why I have predicted for months that mass deportation will not occur. The article cites five reasons. There is a sixth, the most powerful deterrent: public outrage over the first few arrests of law abiding unauthorized persons who have contributed to their communities for years.

Immigration-court backlog: Most immigrants in the U.S. illegally can’t be deported without a hearing in immigration court, where they have a chance to ask for asylum or another avenue to stay in the country. But immigration courts are so backlogged that hearings are being scheduled as far into the future as 2029.

Outside experts estimate that Congress would have to hire about 5,000 immigration judges—the system now has roughly 500—to efficiently sort through all existing cases as well as new ones.

I outlined here the complex series of steps to deport some one.

Lack of ICE agents: The U.S. Immigration and Customs Enforcement agency is responsible for arresting immigrants in the country illegally, detaining them and deporting them. It has roughly 6,000 agents on staff and funding to jail about 40,000 immigrants at any given time. It doesn’t have nearly the fleet of planes needed to deport millions of migrants back to their home countries.  The government is also having trouble recruiting new Border Patrol agents and doesn’t have enough asylum officers to hear claims made outside of court.

Republicans are hoping to use a budget process known as reconciliation to pass billions of dollars in spending for ICE as well as Trump’s border wall without needing Democratic votes.  Trump plans to declare a national emergency soon after taking office, which could unlock additional money taken out of the Pentagon’s budget for projects such as border-wall construction.

Blue-state resistance: Immigrants living in the country illegally are often concentrated in big, Democratic-led cities such as New York, Chicago, Los Angeles and Denver. Chicago Mayor Brandon Johnson said in a CNN interview recently that he wouldn’t be cooperating with federal immigration authorities. “The law is very clear,” he said. “Local police officers are not federal agents.”

Without local cooperation, ICE would need to post officers on watch outside of jails for hours or days to catch a release. They can also conduct neighborhood raids, but immigration officers—unlike regular police—don’t have warrants to make an arrest, meaning they can’t enter a person’s home to arrest them.

Lack of cooperation from foreign countries: Among the reasons President Dwight Eisenhower was able to pull off a broad deportation program in the 1950s, which Trump cites as a model, was that everyone he sought to send out of the country was from Mexico. But over the past few years, immigrants crossing into the U.S. illegally have come from record numbers of countries, such as China, India, Mauritania and Uzbekistan.

Many of the newly-arrived migrants in the U.S. come from countries where diplomatic relations are frayed or even nonexistent, such as Venezuela.  U.S. immigration law allows immigrants to be deported to third countries if their home countries won’t take them back, but getting a third country to agree is rare.

Legal challenges: Many of the changes proposed by Trump and Stephen Miller, his incoming deputy chief of staff and longtime immigration adviser, can only be done through Congress—or perhaps even through a constitutional amendment.

A core issue they have attempted to surmount is that under existing law migrants can legally ask for asylum even if they have entered the country unlawfully. Trump, and even Biden, sought to get around this by making asylum seekers live in Mexico while their claims were being weighed, jailing them, or coming up with new rules to make asylum seekers otherwise ineligible. As long as the law remains on the books, however, the government will struggle to find legal ways to narrow that right.

 

 

Revised figures for number of recent immigrants

One June 9,2024, I summarized the conflicting estimates of the level of recent foreign born persons. The figures differed widely among Federal estimates. The difficulties arise from the surge of aslyum applicants and temporary visas issued for humanitarian purposes. And, the total figures do not distinquish well between permanent (Gree card) entrants and other entrants.

In the past few days, the Census, which as had the lower bound of estimates, increased its count for FY 2023 from 1.1 million to 2.3 million. its 2024 estimate of 2.8 million holds.

Here is what the Census said on December 20: “Net international migration, which refers to any change of residence across U.S. borders (the 50 states and the District of Columbia), was the critical demographic component of change driving growth in the resident population. With a net increase of 2.8 million people, it accounted for 84% of the nation’s 3.3 million increase in population between 2023 and 2024. This reflects a continued trend of rising international migration, with a net increase of 1.7 million in 2022 and 2.3 million in 2023.”

In the 2010s, the Census recorded a net immigration total hovering around one million. The 2022, 2023 and 2024 totals come to an average annual figure of 2.3 milion, or 1.3 million higher than past trend.

Scapegoating of immigrants

Two individuals can have a productive, rational, and deeply satisfying argument over the merits of a more restrictionist versus a more inclusive immigration policy. We do not have this debate because the political leadership in the country has evaded it. What we do have is, among several disruptive behaviors,  scapegoating of immigrants.

Donald Trump appears often to scapegoat immigrants, primarily as the cause of violence, but also stealing jobs. There’s an element in his rhetoric which suggests the so-called scapegoat mechanism of collective violence. This was articulated by René Girard (1923-2015), a French philosopher who taught at Stanford and one of whose students is Peter Thiel, the Silicon Valley billionaire and erstwhile supporter of trump.

Elements of the scapegoat mechanism:

Social tensions intensify, seen in an increase in a phenomenon of severe competition over status and identity. We can see this within the right (at the Mar a Lago court) and within the left (virtue signaling, censoring).

Release of tensions: this can involve group action to blame an individual or group. The scapegoat is often chosen arbitrarily, typically someone who stands out as different or vulnerable. Poor unauthorized immigrants fit this profile.

By focusing collective violence on a single target, the community temporarily sets aside internal rivalries and conflicts. The act of scapegoating provides a cathartic release for the community’s destructive tensions. Blaming a scapegoat gives the illusion of control over complex, systemic problems.  Doesn’t this seem like a conventional behavior of Trump?

Girard argues that for scapegoating to be effective, the community must be unconscious of the mechanism. They must genuinely believe in the scapegoat’s guilt.

It is quite remarkable that the mass deportation idea runs completely afoul of the legal protections afforded any resident of the United States. I have posted recently on the complex steps from detaining an individual in the United States and deporting them.

The Tech Bro Battle and MAGA: H-1B visas

The H-1B program is a critical source of computer science talent and a major resource for the STEM field.

There are in the U.S. about 35 million STEM workers (the number varies a lot by definitions) of which about 2.5 million are computer science workers. Before the pandemic scrambled the entire legal immigration system, there were at any given time about 600,000 active H-1B visas (about 85-100K issued every year, for multiple years). 90% of H-1B visas are for STEM work, and two thirds in computer science.   Overall, there are about 7 million foreign born STEM workers; about one out of twelve of these workers are here on a H-1B visa.

For an informed debate about the H-1B program, go to this posting of two years ago.

Here is the fascinating story of how the H-iB program was one of the enablers of the tech industry in India, through knowledge transfer by H-1B visa holders.

Problems with the program today: First, a huge demand by American employers has created a situation ripe with gaming and uncertainty.  Second, the fact that about one third of visas are awarded for jobs paying less than $100,000 suggests that many positions could reasonably be filled by Americans.

Importantly, the administration of the program is divided among Homeland Security (U.S. Citizenship and Immigration Services, or USCIS), the Labor Department (for wage standards), and the Department of State. No agency, no special review unit, is tasked with assessing the performance of the H-1B program with respect to meeting labor demands efficiently, effectively, and fairly.

Immigration politics is heavily client-oriented, largely out of view and with without extensive public debate.  When it bursts into the open, all kinds of contradictions appear. Tweet by Musk on 11/24/23:  “We should greatly increase legal immigration of anyone who is hardworking, honest and loves America. Every such person is an asset to the country. But massive illegal immigration of people we know nothing about is insane.”

 

 

The battle between tech bros and MAGA: the lust for global STEM talent

 

Britta Glennon in 2020 (updated Sept 2024) wrote a paper which succinctly states the demand for foreign talent from Silicon Valley, and how Silicon Valley eventually has its way. From the abstract:

“Highly-skilled workers are not only a crucial and relatively scarce inputs into firms’ productive and innovative processes, but are also a critical resource determining competitive advantage….Firms respond to restrictions on H-1B immigration by increasing foreign affiliate employment at the intensive and extensive margins, particularly in China, India, and Canada….The most globalized multi-national corporations are the most likely to respond to [skilled worker immigration] restrictions by offshoring….these firms hire 0.9 employees abroad for every visa rejection. More broadly, the paper provides evidence of a push factor for internationalizing knowledge activity.”

I have posted on the extreme dependence of American firms on foreign-born AI talent: The United States has a large lead over all other countries in top-tier AI research, with nearly 60% of top-tier researchers working for American universities and companies. The US lead is built on attracting international talent, with more than two-thirds of the top-tier AI researchers working in the United States having received undergraduate degrees in other countries.