Reforming Immigration Policy

“I want to emphasize that to address the shortage of scientists and engineers, we must do both – reform our education system and our immigration policies. If we don’t, American companies simply will not have the talent they need to innovate and compete.” As Bill Gates stated in 2008, immigration policies for skilled workers have always been an issue. High-tech firms advocate passionately about reforming immigration systems as they are facing shortage of skilled workers, but labor unions and conservative immigration groups, by contrast, strongly oppose to it. As one of the most immigrant friendly countries in the world, the United States certainly has a large number of foreign skilled workers as well as foreign students inflow every year. For international students, except experiencing world-leading education system, possible chance of working for American companies permanently is also one of the drive factors to choose America over other countries.

In April 2008, Department of Homeland Security established a policy called STEM (degree programs in science, technology, engineering and mathematics) OPT Extension, which greatly benefit foreign students holding STEM major degrees, who are identified as potential skilled workers, in getting their working visa in the U.S. In August 2015 however, the policy was revoked by federal court. After measuring the effects of different dimensions of globalization, such as trade and immigration, on firms, with an emphasis on productivity and innovation, I believe raising H1B visa cap will fulfill the shortage of skilled workers, who bring direct impacts in gains of innovations in the