Philip Martin: plmartinucdavis'edu

1
Temporary Worker Programs US and other
Countries

• Philip Martin plmartin_at_ucdavis.edu
• http//migration.ucdavis.edu

2
Three Topics

• TWPs nothing more permanent than temporary
  workers
• US H-1B, H-2A, H-2B programs
• Other countries Are TWPs optimal compromise
  between no borders and no migrants extremes?

3
TWPs

• Purpose add workers temporarily, not settlers
• Experience Programs get larger and last longer
  than anticipated
• Why incentives of employers and
  migrants--distortion and dependence

4
Distortion and Dependence

• Distortion Employers rely on migrant network for
  recruitment and training--they lose links to
  local workers and labor markets
• Dependence Migrants lives improve with higher
  wages reducing recruitment could increase
  unauthorized migration

5
Migration and Development

• Sending workers abroad reduces poverty via
  remittances
• Do 3 Rs of recruitment, remittances, and returns
  speed development?
• Virtuous circles between migration and
  development Indian IT
• Vicious circles African health care workers
• Rural migrants generally do NOT lead to
  stay-at-home development instead, more
  migration--internal or external?

6
Migration-development Lessons

• No automatic link between migration and
  development
• Receiving-country employers are the key decision
  makers their preferences may clash with
  sending-country governments
• Rural migrants not likely to return, but
  investments in their children may speed
  rural-urban migration

7
US TWP Programs

• H-1B Foreign professionals fill US jobs that
  require a college degree 65,000/year
• H-2A Foreign farm workers no cap
• H-2B Foreign low-skilled 66,000/year
• At least 12 more, from E-treaty traders to
  J-exchange visitors to TN-NAFTA professionals

8
H-1B Professionals

• Purpose Bridge labor market gaps at a time of
  mis-matches
• Trade off easy employer access but cap of 65,000
  a year reached in 1998
• IT boom, low unemployment, and increase in
  cap--eventually 195,000/yr
• 2004 cap reverts to 65,000/yr

9
H-1B Issues

• Is there effective DOL oversight of employers,
  especially body brokers?
• Are H-1B visa holders the worlds best and
  brightest?
• Why does the S E labor market resemble a
  revolving door?

10
H-2A

• Certification program with no cap 98 of
  employer requests approved
• H-2A 3 of farm workers unauthorized 50
  Why?
• Recruitment 5 US referrals, 2 US hires

11
H-2A and AgJOBS

• About 60,000 H-2A workers and 1 million
  unauthorized
• AgJOBS compromise Legalize the unauthorized,
  require continued farm work, and make H-2A more
  employer-friendly
• 3 changes attestation, no housing, AEWR
• Canada different starting point--not 17
  unauthorized workers for every H-2A worker

12
US TWP Issues

• Migrants Temporary visitors (H-2A/B) or
  probationary immigrants (H-1B)?
• Attestation versus certification trust the
  employer?
• Other TWPs Caps on H-1B and H-2B prompt
  employers to use non-DOL administered programs

13
Other Countries

• Estimated 100 million migrant workers and 200
  bilateral labor agreements
• 3 major questions how many, from where, in what
  status?
• Hard to obtain agreement on these questions in
  receiving countries

14
Europe 3 Major Trends

• From one macro program to many micro programs
  (shotgun to rifle)
• From employment service to employers answering
  the 3 questions
• From getting workers to more goals, from
  cooperation on unauthorized to promoting
  development

15
3 Lessons for Canada

• Include economic mechanisms to deal with
  distortion and dependence
• Include employers and advocates in program
  design, and give administrators discretion
• Be cautious TWPs tend to get larger and to last
  longer

16
Thank You

• More information
• http//migration.ucdavis.edu