Opinion: Putting the “B” in H-1B

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The Center for Immigration Studies’ Norman Matloff comes up with a new measure that, he says, indicates H-1B visa recipients are not in fact the best and the brightest that proponents sometimes suggest they are.

I don’t know how persuasive you’ll find Matloff’s ‘talent measure,’ or TM value. I think it fails to prove Matloff’s main conclusions: that H-1B holders overall are not noticeably more skilled than native workers and that within the universe of H-1B holders, Western Europeans are more skilled than Asians. But the TM value has one attraction: It uses a marketplace value for making its assessment.

The value is calculated by comparing the ratio of the worker’s salary to the prevailing wage figure stated by the employer. So if you’ve got a TM value of 1.0 you’re making essentially the average salary for the job you’re doing. Since employers can’t (officially at least) pay visa holders less than the stated prevailing wage, nobody should show a TM value of less than 1.0. On the other hand, if you’re a gifted worker you should have a higher TM value because you can command a higher salary.

The shocking conclusion? One multiplied by one equals one:

• The median TM value over all foreign workers studied was just a hair over 1.0.
• The median TM value was also essentially 1.0 in each of the tech professions studied.
• Median TM was near 1.0 for almost all prominent tech firms that were analyzed.
• Contrary to the constant hyperbole in the press that “Johnnie can’t do math” in comparison with kids in Asia, TM values for workers from Western European countries tend to be much higher than those of their Asian counterparts.

Shouldn’t this last point address hyperbole about how ‘Johann’ or ‘Jean-Luc’ can’t do math? I mean, the media self-flagellation about poor math scores concerns American students, not Western European students, right? Is Matloff saying Americans and Western Europeans are interchangeable?

The breakouts by company and nation of origin are interesting, but I’m not sure they prove anything other than that Microsoft appears to be a generous employer and that immigrant tech workers from Canada and Germany command higher salaries than those from India. That seems easily explicable: a Canadian worker would presumably be a native English speaker and thus a little more comfortable at negotiating a good price, while a German brings language skills that, given Germany’s continued industrial and technological strength, would be worth paying a premium for.

Or maybe language skills have nothing to do with it, and there are some other variables at work. (For example, suppose most or all of the people in the U.S. doing a particular job are Indian H-1B holders: Then a TM value of 1.0 could just mean that they’re all above average, Lake Woebegone-style.) In any event, I don’t see how these numbers refute the claims of the hypothetical industrialist or lily-livered immigration supporter who thinks the best person to judge what skills he or she needs is the person doing the hiring.

Prove that I just don’t get it or am being intentionally obtuse by reading the whole article right here.

Update: Matloff responds. Good stuff in the comments too...