Free Flow: The economic imperative for restoring immigration and labor movement. Presentation for the NYU class, International Political Economy by Robert Stribley, 2 December 2020
2. Current Status
• 11.9% workers out of a job across 20
countries, almost 15% in the U.S.
(Brookings)
• IMF predicts global growth will contract
by 3% in 2020
• “Businesses that depend on mobile
labour have been hobbled.” – The
Economist
• Meanwhile, the Trump administration
placed historic limits on immigration via
executive order
• Significant limits on work visas (H-1B)
with COVID-19 referenced as
motivation to limit such immigration,
but hampering healthcare and tech
industries
• To recover from this COVID-19 slump,
restore immigration and free
movement of labor
3. Immigrant
Contributions &
Impact
• Immigrants have been working essential jobs during
COVID-19, supporting world economies
• 78% of undocumented immigrant workers in U.S. working
essential jobs
• Immigrants 5% less likely working from home
• More likely to work longer hours
• COVID has a disproportionate impact upon immigrant
communities
• More likely working in ERs, ICUs, long term care facilities
where they may be exposed
• They make up over 40% of long-term care workers in some
states hit heaviest by COVID
• Yet they’re being penalized, vilified during the pandemic
4. Myths
Not enough jobs to go around
• “lump of labor” fallacy
• Immigrants to the U.S. create more
jobs than they take (Kellogg Insight)
• Twice as likely to found large and
small companies
• Removing barriers to labor
movement could increase global
gross domestic product (GDP) by as
much as 50 to 150%
5. Proposal #1
Restore & Enhance Skilled Worker
Programs• Restore the immigration flow for skilled workers supply chain/with rigorous
screening (freedom of labor movement)
• Reverse Trump’s 2017 executive order limiting H-1B visas
• This made hiring more difficult for healthcare industry during COVID-19
• Big tech companies complain it undermined their ability to compete and cost
Americans jobs, too
• When US restricts H-1Bs, multinational companies don’t hire Americans
• They off-shore, moving their operations to Canada, China, India etc.
• Shifting landscape: While countries like Australia, China, Malaysia, U.S. have
been restricting immigrants, Japan has been signaling it’s ready to bring more in
Solutions
6. Proposal #2
Enable legal, taxable work for
existing undocumented immigrants
• Enable paths to citizenship (or explicit permissions, temporary visas) for undocumented
immigrants, who have lived in the U.S. for pre-determined amount of time
• 73% of Americans support path to citizenship for undocumented essential workers
• Undocumented immigrants already contribute billions in tax dollars, including significant
support for social security and Medicare benefits they are unable to access
• Enlisting their help during post-COVID recovery would help with increases in taxes and
contributions to GDP
• Reinstate and extend the DACA program, too, with a path to citizenship
• Immediately adds $22.7 billion to GDP with cumulative increase over 10 years of some $281
billion
• Establish a program to earmark a percentage of immigrant taxes to provide higher
education/access to skills training for Americans, especially in affected areas
Solutions
7. Proposal #3
Establish a Special Work Visa for
Mexican Citizens
• Establish a special work visa for Mexican citizens to ensure the free flow of migrant
work and re-establish damaged ties with Mexico
• Improve upon the failed Bracero program and H-2A temporary agricultural visa
• Though H-2A jobs pay on average 57% higher than all state’s average, only 1 in 20
jobs are taken by an American, who then usually quits
• Reduces number of illegal border crossings
• Earmark taxes for education assistance and developing local work programs, such
as infrastructure for notably affected areas, border towns, agricultural communities,
etc.
Solutions
8. Conclusion
• By committing to renewed freedom of movement for
immigrant labor, the U.S. can ensure itself a speedier
economic recovery from the COVID-19 pandemic
• Immigrant workers are proven to increase the GDP
and generate more taxable income to support
programs such as social security and Medicare
• Not only do they often work jobs American citizens
will not, but they also create new companies and new
jobs, as a result
• If the U.S. doesn’t welcome these immigrants, other
economies eventually will
• Though focused on the United States, these principles
apply to economies in varying degrees the world over
10. Anderson, Stuart. "Immigrants and Billion-Dollar Companies," NFAP Policy Brief, October 2018
Azoulay, Pierre, et al. “Immigrants to the U.S. Create More Jobs than They Take,” Kellogg Insight, 5
October, 2020
Bier, David J. "H-2A Visas for Agriculture: The Complex Process for Farmers to Hire Agricultural
Guest Workers," The Cato Institute, 10 March 2020
“Bittersweet Harvest: The Bracero Program 1942-1964,” National Museum of American History
“The Bracero Program,” UCLA Labor Center
Center for American Progress Action Fund and Hart Research Associates, “Winning the Immigration
Debate During COVID-19,” Center for American Progress, 2020
Clemens, Michael A. “Economics & Emigration: Trillion-Dollar Bills on the Sidewalk?” Journal of
Economic Perspectives, Volume 25, Number 3, Summer 2011, pp.83-106
Clemens, Michael A., et al. “Immigration Restrictions as Active Labor Market Policy: Evidence from
the Mexican Bracero Exclusion,” American Economic Review, Vol. 108, No. 6, June 2018, pp. 1469-87
Coyne, Christopher. “Immigration Reform Is Key in the Recovery from the COVID-19 Crisis,” Mercatus
Center, George Mason University, 19 May 2020
Glennon, Britta, “How Do Restrictions on High-Skilled Immigration Affect Offshoring? Evidence from
the H-1B Program,” The Cato Institute, 23 September 2020
Hinojosa-Ojeda, Raul and Sherman Robinson. “Essential But Disposable: Undocumented Workers
and Their Mixed-Status Families, Modeling COVID-19 Economic Impacts and Government Relief
Policies by Race and Immigration Status in Los Angeles County, California, and the United States,”
Institute for Research on Labor Employment, UCLA, 10 August 2020
Hinojosa-Ojeda, Raúl, et al. “Undocumented During COVID-19: Essential for the Economy but
Excluded from Relief,” UCLA, 10 August 2020
Further Reading
Lee, Caroline, et al. “Long-Term Care Facilities Must Prioritize Immigrant Workers’ Needs To Contain COVID-
19,” Health Affairs, 18 September 2020
Liu-Farrer, Gracia. “Post-Pandemic Japan Will Attract the World,” Foreign Affairs, 24 July 2020
Lynch, Robert and Patrick Oakford. “The Economic Effects of Granting Legal Status and Citizenship to
Undocumented Immigrants,” Center for American Progress, 20 March 2013
Mobarak, Ahmed Mushfiq. “Does Immigration Create Jobs?” Yale Insights, 30 March 2017
Organisation for Economic Co-operation and Development. “What is the impact of the COVID-19 pandemic
on immigrants and their children?” OECD.org, 19 October 2020
Ortega, Francesc, et al. “The Economic Benefits of Passing the Dream Act,” Center for American Progress,
September 18, 2017
Power, Samantha. “The Can-Do Power,” Foreign Affairs, January/February 2021
Roberts, Nina. “Undocumented immigrants quietly pay billions into Social Security and receive not benefits.”
Marketplace, 28 January 2019
Rothwell, Jonathan and Hannah Van Drie. "The effect of COVID-19 and disease suppression policies on labor
markets: A preliminary analysis of the data," The Brookings Institute, 27 April 2020
Semotiuk, Andy J. “New Fast-Tracked U.S. Regulations Threaten To Restrict H1B Visas Again,” Forbes, 30
September 2020
“Tearing up the welcome mat: When covid-19 recedes, will global migration start again?“ The Economist, 1
August 2020
“What is the impact of the COVID-19 pandemic on immigrants and their children?” OECD.org, 19 October
2020
Williams, Byerica, et al. "Inclusive Approach to Immigrants Who Are Undocumented Can Help Families and
States Prosper," Center on Budget and Policy Priorities, 19 December 2019
Notas del editor
Free Flow: The economic imperative for restoring immigration and labor movement
International Political Economy – Presentation – 2 December 2020
Photo by Robert Stribley
Current Status
Graphic: USCIS, National Foundation for American Policy
Reality Check
Photo: Fstop123/iStaock, via Getty Images
Myths
Photo by Robert Stribley
Solutions – Proposal 1: Restore and enhance skilled worker programs
Solutions – Proposal 2: Enable legal, taxable work for existing undocumented immigrants
Solutions – Proposal 3: Special Work Visa for Mexican Citizens
Solutions – Proposal 3: Special Work Visa for Mexican Citizens
Photo: Farmworkers from Fresh Harvest maintain a safe distance as a machine is moved on April 27, 2020, in Greenfield. (Brent Stirton/Getty Images)