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Winning the visa lottery

86 pointsby 5h agoaeaweb.org
75 comments
4h agoHN ↗

"When policy is politically polarized, you need more facts," he said.

Mmmm... It seems in the world of politics, esp. populist politics, more facts don't bring better policies. They are simply ignored, or accused of being lies pushed by the ennemies.

"We have all the facts on this we need. We don't need any more facts. In the land of truth, my friend, the man with one fact is the king."

-- Linton Barwick, In The Loop (2009)

https://www.youtube.com/watch?v=PdoN1LWGgfQ

3h agoHN ↗

Finally a The Thick of It reference in HN.

An AUS Utopia reference would probably be more fitting though.

2h agoHN ↗

My friend was saying that we just need to show people the facts to change their minds. I showed him a pile of scientific studies indicating that it doesn't work. His response was "I still think it'll work"!

2h agoHN ↗

Hillarious, to be honest. It still leaves me wondering... what _does_ work?

1h agoHN ↗

MDMA/Psychedelics on the carrot axis

Torment nexii on the stick axis.

1h agoHN ↗

evolution -- ppl who refuse to acknowledge reality tend not to leave many offsprings. and if they do, maybe they are adhering to a more powerful reality afterall.

1h agoHN ↗

You cannot change people, you need to change people.

1h agoHN ↗

That's realy inaccurate. If anything the more religious you are the more offsprings you have. Atheist societies are below replacement levels. What makes you think fact based thinking leads to more children making?

1h agoHN ↗

Could it be that atheists are the ones who are ignoring reality?

59m agoHN ↗

given the unknowability of reality - 'facts' in science are only hypotheses that have not yet been disproven by data - nobody knows why anything exists at all -

a lot of weight has to be given to 'what works' - what things grind up against the machinery of reality and survive over the long term? there is a 'truth' to such things

1h agoHN ↗

What facts do you think can change my preferences? I'm sitting here telling you I want apple pie, and you're harping on about how "kale salads have all the vitamins you need!". We're talking at each other, because you failed to understand. This isn't about what you think the facts are, but about what I want to happen. I can accept those as facts and it wouldn't change anything.

1h agoHN ↗

This feels unrelated to anything else being said, unless you’re arguing that literally no arguments feature a factually incorrect position.

1h agoHN ↗

I have looked into some of these studies and realized that it’s near impossible to change people’s minds.

Humans have a machinery reinforcing their world view. Contradicting observations and facts are usually ignored or interpreted such that it matches their already held opinions.

1h agoHN ↗

I don't think this is particularly strange when one thinks about the effect of ideology. It has a way of filtering any common reality different people have. I'm not sure how to move towards a common understanding without a larger sense of shared experience, but even then the same experience can have different interpretations.

That being said, having shared experience can help, at least anecdotally, in being able to come to terms with wildly differing views. One example I have is with my brother. With the same event we had come away with a drastically different understanding. The facts between us all checked out, and we confirmed it many times. Yet the shared vocabulary gave us a way of acknowledging the others disagreement in the shared experience.

1h agoHN ↗

That's funny :) Though when presenting facts and studies, it's also worthwhile to think about how much of the world these studies are accurately able to explain. For physics this number is high. " For social sciences there's good reason to be skeptical. Even if (big if) a study is directionally replicable, the total proportion of the world, that can be accurately and consistently be explained isn't great.

"Economist X says there's relation R between variables P and Q" Meanwhile another economist might have found a different result.. or not have published a non-effect. Or have found the effect to be non-existent given confounders.

The danger is when/if people selectively choose studies, that just so happens to repeat what their ideology would dictate.

52m agoHN ↗

The danger is when/if people selectively choose studies

This, in itself, assumes that all studies / papers are equally as good and methodologically sound, which is not a true assumption.

56m agoHN ↗

Sometimes they are lies. Governments including Western ones have lied before (e.g. Tuskegee Syphillis), and academics have published flawed, misleading, or straight-up fabricated studies (e.g. “landmark” Alzheimer’s study).

But more often, the “fact” does not address the individual’s issues, and the individual may give a stupid counterargument (“…lie pushed by my enemies…”) but they have a legitimate one. In this case, I guarantee there are specific people who’ve been indisputably replaced by H1Bs, maybe clustered in specific reasons, and maybe specific fields. Telling these people “overall H1Bs create jobs” won’t convince them.

Like telling poor people “the economy is improving, inflation is only 0.x%”. Both may be true in general at the population level, but to the person you’re speaking to, they don’t matter; economic improvements can go to others while they suffer more.

53m agoHN ↗

But more often, the “fact” does not address the individual’s issues,

I feel like this has been a big failing of one (left) side of politics in recent years. Quick to state 'facts' as arguments but those haven't landed as well as they have in the past (15 - 20+ years ago), for whatever reasons...

3h agoHN ↗

The firms who do not win the visa lottery “just become smaller firms” instead of hiring market-rate labor because they still have to compete in a market against other firms who won the visa lottery and have access to below-market-rate labor.

Did the economists who ran this study miss this? Do they explain it?

3h agoHN ↗

AEA leans strongly left. I wouldn't put much store in this.

3h agoHN ↗

"Reality has a well-known liberal bias."

3h agoHN ↗

Have you gotten a chance to read the paper? If not, you should consider reading it. They have explained it. It's got to do around the fact that domestic labor supply is inleastic but the foreign supply is infinitely elastic. You might want to focus on sections VI and VII for more details around their model and assumptions.

3h agoHN ↗

I think the interesting question then moves one level down: how well do those elasticity assumptions describe the actual H-2B labor markets in the study?

3h agoHN ↗

I’d push back a bit on the idea that they simply missed it. They actually test something very close to this in the appendix: whether losing the lottery changes the competitive environment firms report facing. They don’t find a statistically significant competition effect

3h agoHN ↗

Cmd-F housing

not found

Yet another chamber of commerce article clamoring for more cheap labor without addressing where all of these people are supposed to live.

3h agoHN ↗

It is rather puzzling how this major contributing factor is going overlooked. It seems obvious from ground-level. Economists often talk about how expensive labor drives price increases, but don't talk about how price increases cause expensive labor.

3h agoHN ↗

Did you get a chance to read the paper? Did you read Section VII and footnote 51? If so, do you still believe that the article is "clamoring for more 'cheap' labor?"

And what other issues would you like to see besides housing and employment in the article?

3h agoHN ↗

Uh, in the housing that they build? The amount of housing we can build with cheap immigrant labor is so much more than what we can do without them. Housing gets more expensive when immigrants are pushed out, because the cost to build rises more than the reduced demand reduces prices.

3h agoHN ↗

Partly true, though to a first approximation, the reason we don't build more houses isn't an issue of construction labor costs. Many places with jobs don't allow building homes.

(That's not inherently a universal problem, especially if you're talking about the entire labor market. But it's a problem in many places.)

1h agoHN ↗

The paper is about temporary workers, specifically for seasonal jobs. They’re not buying houses or renting long-term. In fact some of these jobs include on-site accommodation for workers.

3h agoHN ↗

"Evidence from a US government lottery shows that restricting foreign low-skill workers shrinks businesses without creating jobs for Americans."

Proving that the issue is capitalism and its systemic need for a reserve army of labour (https://en.wikipedia.org/wiki/Reserve_army_of_labour) to pressure people to accept unfair conditions of living/work

3h agoHN ↗

The lottery is what makes this unusually interesting. A lot of immigration/labor studies get stuck on the obvious selection problem: firms that hire immigrant workers are probably different from firms that don't in a dozen other ways.

3h agoHN ↗

The results suggest that low-skill foreign and low-skill American workers are poor substitutes for one another. The authors' estimates put the elasticity of substitution between H-2B and US workers at roughly 0.8 to 2.2, far below related studies of immigrants in low-skill work, which typically find an elasticity of 4 to 10, and nowhere near the perfect substitutability assumed in some influential studies.

I feel like the wording "low-skill" has become a technical term that doesn't mean what the word says and it makes people make assumptions they shouldn't with regards to these jobs. A lot of these so called low skill jobs require a highly specific job experience and/or productivity to simply keep pace and not drag down the rest of the team. We talk about Joel Spolsky and how a poor hire in a software development team can hurt morale but it simply isn't that big of a factor with us as it is in these so called low-skilled jobs but we aren't ready for that conversation.

Also about housing, who do you think builds all these additional housing units if we don't bring in the labor we need to build them?

3h agoHN ↗

Equally striking is what did not happen. Employment of low-skill American workers at losing firms did not increase. Across all firms the effect of foreign hiring on US employment was zero or positive, and in a prespecified subsample of rural firms it was significantly positive, with an elasticity of 0.61, meaning that for every one percent increase in H-2B workers there was just over half a percent increase in US workers.

"If you don't allow firms to hire immigrant workers, they just become smaller firms," Lewis said. "They are not replaced with US workers. Instead, the output of the firm shrinks, and there are fewer total workers."

This is incredibly important. Everyone who fears immigration is going to take their job should read this and realize that fear is not only false but inverted.

3h agoHN ↗

Nobody's immigration fears are data-driven, nor have they ever been.

3h agoHN ↗

Sure, but there's a difference between a fear being tenuously plausible but overblown/stoked, and a fear being flatly incorrect and inverted. The former is harder to counter. The latter still has the standard problem of lies propagating faster than the truth, but it at least theoretically should be countered by the truth.

At least in theory, many people perpetuating this myth are at least nominally convinced that it must be obviously true, because the zero-sum thinking is simpler than the reality.

Of course, the other problem is people going "my anecdote beats your study", because they personally know someone who blames immigration for losing their job, and a study of people in general still lets someone go "ah, but that's not always true".

2h agoHN ↗

I also think that the main fear - at least where I live - is not job loss but national identity and crime. At least that's what the anti-immigration political messaging is about. I haven't seen the job loss argument in the decade I've lived here.

Facts are much lesd helpful here because half of the perceived problem is emotional.

2h agoHN ↗

I mean, people worry about crime even in places where study after study shown that immigrants have lower crime rates. People see immigrant and assume crime. And I intentionally put "in places" in there, immigrant crime rates do differ between places.

And as similar data point, you see certain Americans scared of going to UK assuming some super high crime levels there ... while it has overall smaller crime levels then where they like. And you see rural people feeling super afraid the moment they step into a low crime city, because they are predisposed to think city = immoral crime.

1h agoHN ↗

You got it reverse - people look at prison populations and deduce criminality rate from there. Switzerland almost 3/4 are foreigners, Germany its 50% and so on.

Unless given country has similar % of foreigners (and of course they don't), you get where they come from and where the emotion 'foreigners bad' stems from. Even if one ignores flashy news about high profile attacks/criminality, which of course are impossible to ignore. Right or not, this statistics is primary level math that anybody can do in their head and even folks following populists will do.

Now what would you say to these people in such case? Bear in mind the topic is in western Europe, ie Germany so toxic that even saying above got high ranking people like police chiefs fired on spot. Exactly kind of dumb over-corrected setup that makes things like ADF thrive quietly, till election come and then folks are 'shocked' that they don't understand their own population at all.

1h agoHN ↗

Now what would you say to these people in such case?

The honest thing would have been to tell them - you're right, yes there's an overrepresenation in crime - but we're working on it , it will get better in the 2nd and 3rd generation (it does but very slowly), etc. But lots of the establishment doesn't seem able to even do that - they have to completely deny the problem, by for example pulling tricks like counting immigrants from India, Thailand and MENA together, or by not allowing the collection of data at all. This is really bad policy imo.

11m agoHN ↗

2-3 generations? why should we import criminal foreigners that will make our cities and villages unsafe for decades?

it is not said honestly out loud, because it is absolutely insane, and would be rightfully rejected.

7m agoHN ↗

it is not said honestly out loud, because it is absolutely insane, and would be rightfully rejected

I don't think not saying it out loud is helping the current policy makers; the right and the far right understood right away this was their biggest point. By not engaging them in the discussion , or engaging with hand wavy trickery, you kinda lose the debate I think.

1h agoHN ↗

Facts are much lesd helpful here because half of the perceived problem is emotional.

Well in countries like Denmark and Sweden the facts do show over representation of MENA immigrants (and their descendants) in violent crime. I don't think it's something that could or should be wished away. But I also don't think it's the main issue , it's for sure also a cultural/religious clash.

1h agoHN ↗

1. Immigration to the U.S is very different than immigration to Europe in terms of outcome , and even immigration to Europe could be further disected; lots of differences if you come from MENA or come from Thailand

2. Not everything can be answered by gdp; there is a real issue of culture and values that could become eroded by huge influx of immigration causing societal strife.

2h agoHN ↗

They indeed will be in about 20 years when the impending population collapse hits

2h agoHN ↗

There are over a million legal immigrants in China, plus an unknown but sizable number of illegal immigrants, mostly from Vietnam and Myanmar. Of course this is not a huge number compared to the overall population, but it's still a sizable number of people.

2h agoHN ↗

They still have enough unskilled labor they can pull from the country side. They pack up the village and ship them (relocate the people) to a city in need of workers.

35m agoHN ↗

They increasingly don't (much of rural China is depopulating rapidly, with only the old folks left) and "pack up the village and ship them to a city" is not a thing, unless it's being demolished for a dam etc.

1h agoHN ↗

Lol a million immigrants, that's the net inflows the U.K is getting a year with a 60 something million population.

2h agoHN ↗

Not really. China is essentially a microcosm of capitalism playing out entirely internally.

E.g. to move to the capital permanently from outside you're basically under the same scrutiny as an immigrant on a greencard.

1h agoHN ↗

The villagers are treated as immigrants with preferential treatment for city-born folks.

2h agoHN ↗

Everyone who fears immigration is going to take their job should read this and realize that fear is not only false

This is only because immigrants are willing to do jobs at wages and working conditions that locals do not accept. Employers in the Finnish berry industry were just jailed for human trafficking. Meanwhile the same companies have been loudly complaining that no Finn wants to work for them.

2h agoHN ↗

But would the corporarions raise salaries and improve conditions if they had literally no other choice? That is the question.

Unionization demonstrably leverages benefits out of corporations, so I'm inclined to think that immigration bans would have the same effect.

2h agoHN ↗

That's the question the article was trying to answer.

>> "If you don't allow firms to hire immigrant workers, they just become smaller firms," Lewis said. "They are not replaced with US workers. Instead, the output of the firm shrinks, and there are fewer total workers."

So, no, if they had no choice they just shrink their operations, it seems. The apparent conclusion is that immigration bans will just force those companies to reduce operations or shut down, instead of paying higher wages to locals.

1h agoHN ↗

In this experiment, only some firms lost access to foreign labor.

The outcome could have been different had all of them lost access due to a foreign labor ban.

58m agoHN ↗

They could open subsidiaries in other countries instead. Corporations are multinational entities.

2h agoHN ↗

Finnish wild berry industry does not really make sense. Imported cultivated berries set an effective price ceiling, which isn't high enough to hire Finnish workers. The ones you could hire are not productive enough, and the ones who could get the job done have better options.

There are similar issues in agriculture, hospitality, and construction. Many jobs are seasonal and require you to live away from home. And because the outputs are supposed to be affordable, they don't pay enough to support you for the rest of the year. So you need an actual job, which is probably nicer and pays enough that you don't want the seasonal job anymore.

1h agoHN ↗

And because the outputs are supposed to be affordable

Well market forces will quickly align these back to reality, unless somebody will keep pumping in tons of money to subsidize this.

2h agoHN ↗

Elasticity 0.8-2.2 means there are/were cases (<1) where an increase of H2b would mean lost 20% US jobs per additional visa or do I read that wrong? I didn't read anything about average or median elasticity or how those figures are ranged in the article.

2h agoHN ↗

This is a topic of interest for me, and I have read a lot of the research about it over the years and like to stay informed.

I'll preface this by saying that the topic is highly contentious in economics. There is no "consensus." The main issue is that with large systems, it is impossible to isolate individual factors like immigration and their effects on other individual factors, like employment, job growth, wages, working conditions, etc.

Let's start with the article, which is narrower than you state. The study covers 472 firms in the 2021–22 H-2B lotteries. Mainly temporary/seasonal low-skill jobs such as landscaping, hospitality, and seafood processing. You cannot jump from that to “immigrants don't take American jobs”.

Further, across all firms, the estimated effect on U.S. employment was positive, but very modest and imprecise. Roughly +0.06 to +0.19 elasticity. The authors themselves say it “does not reduce, and *may* raise” U.S. employment. [Note that the highlight figure of 0.61 is only for rural firms. It is a pre-specified subgroup and the statistical test comes in at p = 0.05. It should not be presented as the result for American workers generally.] Even if the effect is mildly positive, does that negate the negative effects on wages, competition, displacements, housing prices, etc?

We should also remember that H-2B firms are a very particular sample. Employers in this programme must recruit Americans, accept qualified available U.S. applicants, and meet prevailing-wage rules. These are firms specifically seeking temporary foreign labour after going through a labour-market test. That makes extrapolating the result to the whole labour market impossible. Further, the study tells us what happened inside firms that won or lost access to H-2B workers. It doesn't by itself establish what happens to wages, competing firms, workers elsewhere, or every category of immigration.

Let's zoom out. The broader body of research is far more mixed. For example, the [National Academies concluded that immigration's long-run effect on native wages and employment overall is generally small, but found that negative effects can fall disproportionately on workers who are close substitutes, particularly previous immigrants and sometimes native high-school dropouts.](https://www.nationalacademies.org/news/new-report-assesses-t...) The [CBO found short-term downward wage pressure for some less-educated workers from recent immigration.](https://www.cbo.gov/publication/60569)

[This is one of the best and most cited longitudinal studies on immigration ever conducted.](https://docs.iza.org/dp8961.pdf) I'll summarise for you. Denmark accepted a large number of refugees between 1986 and 1998. The study tracks their progress over time, and the impact to natives. The authors found that the influx had a profound negative effect on low skilled natives. The refugees were primarily from low education backgrounds, and immediately displaced natives in jobs like driving, delivery, farming, painting, etc. This forced the natives to leave their professions and up-skill. Thankfully Denmark offers not just free higher education, but monthly allowances to those studying. Natives utilised this, and eventually moved into higher paying work. The outcome of the study is mixed, because on one hand, natives eventually ended up earning more overall, as they moved into white collar professions. On the other hand, I'm not sure they were happy to be forced to leave their chosen professions. The study doesn't evaluate life outcomes, happiness, satisfaction, or any other similar metrics.

What we can surmised from this is that an influx of low-skilled immigrants displaces low-skilled natives. They must be given intensive assistance to retrain if they are not to be harmed. In a nation like Denmark, this is less of a problem. In a nation like America, this is a very big problem. Indeed it follows what we have observed internationally, with low-skilled natives pushing back hardest against high unskilled immigration. They are worst affected by the negative externalities of immigration. And there are many studied negative externalities. I alluded to some above, and they include downward pressure on wages and working conditions, increased competition for jobs and places in universities, higher rent and property prices, higher crime (depending on the originating nation of the immigrant, their level of education, and their reason for immigrating), etc.

I will end by conceding that the U.S. does a better job of integrating immigrants than arguably any other nation on Earth. From the research, this appears to be attributable to a) high national pride and identity, allowing immigrants to assimilate into "the American way," and feeling like a member of the nation, b) poor social safety nets, forcing immigrants into work, and discouraging immigrants from entering who would prefer not to work, and c) a culture of hard work and ambition. European immigration has been far less successful, and has had profound negative effects across society.

tl;dr the poorest and least skilled tend to be the most impacted by immigration - especially low-skilled immigration. Those in white collars professions tend to be the least impacted. All economics and immigration policies carry both positive and negative outcomes. People are often very quick to point out the positive outcomes without admitting to the negative outcomes.

1h agoHN ↗

The outcome of the study is mixed, because on one hand, natives eventually ended up earning more overall, as they moved into white collar professions. On the other hand, I'm not sure they were happy to be forced to leave their chosen professions. The study doesn't evaluate life outcomes, happiness, satisfaction, or any other similar metrics.

What happens when immigrants force people out of the highest-skilled job tiers, and there is no higher tier to upskill into? Here in the US, with the H1-B program, we're being told that these immigrants are only for the very highest levels of skill, which the American workforce lacks.

1h agoHN ↗

In theory, there are no Americans available in those highest levels of skill to be forced out. I’d be interested to see studies that tried to actually assess that.

1h agoHN ↗

It is also meaningless, there is no time frame specified.

I don’t think limiting immigration like this is a good thing. But this also doesn’t mean that it isn’t hurting local people.

Big tech would have been super heavily invested in education if they weren’t getting an endless stream of high-performing well-educated immigrants

1h agoHN ↗

they weren’t getting an endless stream of high-performing well-educated immigrants

That's not how you write "cheap".

But remember, cotton was once also cheap because of the endless stream of immigrants, consequences are paid every day since.

1h agoHN ↗

And there were some wild economic arguments made and accepted in support of this at the time...

47m agoHN ↗

They did not limit migration across the board. Those losing firms compete for workers with non losing firms.

3h agoHN ↗

The notion that less foreign skilled workers means more jobs for Americans has infiltrated the discourse so thoroughly that it should ring alarm bells as to the future of this nation.

It's probably the single most harmful mind virus in economics next to thinking a communism-style command economy is a good idea.

2h agoHN ↗

Firms that won and could hire all the foreign workers they sought saw revenue rise with an elasticity of approximately 0.20, meaning a doubling of H-2B employment raised revenue by about a fifth. Investment in equipment, vehicles, and structures responded even more strongly, with an elasticity of 1.5 to 2.1.

The "investment in equipment, vehicles, and structures" seem to be referring to Capital-labor ratio, a metric in economics that is often attributed as a good indicator of company productivity. I wonder if firms would still prefer to invest in labor force in lieu of capital, given the greater revenue multiple achieved by capital investment.

While this study pertains to US labor force, it is also salient to the Japanese economy. Here in Japan, we have a shrinking working population. Firms have responded by importing labor from abroad and investing in capital (e.g. automation). For example, convenience stores would hire foreigners, but eventually reduce headcount when they install self-serviced checkout.

1h agoHN ↗

I'm still hung up on how the $100K requirement for H1B visas is extended to Sep '27. The US has always been, is and will likely continue to be a magnet for the brightest out there to come and work. Why hamper it?

1h agoHN ↗

will likely continue, press X to doubt, young adults and teens are being raised with the US being the clown country in the world, surely that will affect how it is perceived

1h agoHN ↗

At the very least it's a country now where "who knows what happens next week". Doesn't strike confidence to start a life there.

1h agoHN ↗

Pure luck of the draw. Knew a dev who got it, and it completely changed his career trajectory – pretty wild.