Labor Shortages and U.S. Immigration Reform: Promises and Perils of an Independent Commission

Comprehensive U.S. immigration reform proposals have three major elements: improved border and workplace controls, dealing with the 11 million unauthorized foreigners in the U.S., and managing “future flows” of foreign workers requested by U.S. employers. Improved controls and dealing with unauthorized foreigners were discussed extensively in the U.S. Senate in 2006 and 2007. Future flows were not. This article reviews the decisions governments face when employers request migrant workers, Britain’s independent Migration Advisory Committee, and the promises and perils of a similar U.S. commission to manage labor migration. We conclude that a U.S. commission could help to clarify the trade‐offs involved in migrant labor policy, but cannot replace the need for inherently political choices between competing policy objectives.     

Leaving Science: Gender Differences in Career Continuity Following a Job Loss

This study investigates gender differences in the postdisplacement experience of nonacademic science and engineering (S&E) workers. Using a pooled sample created from the Displaced Worker Surveys conducted between 1994 and 2008, it finds that (1) this S&E work force is particularly vulnerable to job loss and potential career disruption; (2) displaced female S&E workers are more likely than comparable male workers to exit the work force, a gender difference that is conditional on and explained by marital and parental status; and (3) reemployed female S&E workers are also more likely to leave science for non‐S&E occupations, but this gender difference is limited to unmarried workers. A concluding section discusses the implications of these findings for interpreting gender differences in career outcomes.     

Employment-based health benefits: analysis of the April 1993 Current Population Survey

The April 1993 CPS differs from the March 1993 CPS in a number of respects. The April 1993 CPS supplement surveys only workers, whereas the March CPS examines the noncash benefits received by all Americans. The April CPS asks workers about health coverage in the week in which the questions were fielded, whereas the March CPS asks about coverage in the preceding year. In April 1993, there were 112.5 million civilian American workers between the ages of 18 and 64 with jobs. Eighty-two million (73 percent) of them worked for an employer that sponsored a health insurance plan, and 65 million (58 percent of all workers) participated in their employer's health plan. About one-third of workers at firms with fewer than 10 employees had employers who offer health benefits; about one-quarter of all of the workers in these firms participated in their employer's plan. Conversely, 94 percent of workers at firms with more than 1,000 employees had an employer who sponsored health benefits, and over 77 percent of these workers participated in their employer's plan. There are 16.5 million American workers whose employers sponsored health benefits but who did not participate in these benefits. Over one-half of these workers (8.5 million) chose not to be covered. Another 36 percent of these workers (5.9 million) did not participate because they were ineligible or denied coverage. Over 66 percent of the ineligible workers did not participate because they were part-time, contract, or temporary workers. Another 26 percent had not yet completed a probationary period. Among the reasons that those who chose not to participate in their employer's coverage, the vast majority (75 percent) stated they were covered by another health care plan. Twenty-nine percent stated that they chose not to purchase coverage because it was too costly or that they did not need or want the coverage. In 1993, there were 16.7 million workers with no health insurance coverage. The vast majority of these workers (95 percent) were employed by private employers. Sixty-six percent of the workers with no health insurance coverage were self-employed or worked for firms with fewer than 100 employees.     

Declining Numbers of Foreign Students and America's Science and Engineering Enterprise

The enterprise of science and engineering (S&E) is powerfully affected by the role of immigrants in institutions of higher education and in US labour markets (Freeman et al., 2004). Especially since the 1970s and increasingly in the 1990s, educational institutions and labour markets have experienced steady increases of foreign students and workers and have come to expect more of the same. Yet, since 2001 there have been notable downturns in the number of foreign students applying and attending US institutions of higher education.     

French immigration policy since May 1981

Examining the immigration policy changes undertaken by Socialist President Francois Mitterand between May 1981 and September 1982, this discussion provides backgroung information for the study of immigration policy reform in France, discusses the institutional and historical contexts within which recent policy changes have occurred, and examines the initial measures taken, the new immigration legislation adopted in October 1981, the "Exceptional Regularization" carried out in 1981-82, and various other immigration measures announced during the period under study. The discussion also identifies some of the problems which arose and are likely to arise as a result of the new policies. The French government has historically taken great pains to track the movement of both foreigners and natives within its territory. All citizens are issued a national identity card, and all foreigners residing in the country for longer than 3 months must obtain a residence permit from their local prefecture of police. The entry of some 347 million people annually into France must contribute to the problem of exercising strict control at entry. French measures to enforce immigration laws within its borders have not prevented the development of clandestine immigration nor the employment of undocumented foreigners. French law requires that all employers and employees contribute to the system of the Securite Sociale and to a variety of other government programs providing social and economic assistance to workers and their families. The year 1932 marks the date of the first French laws limiting immigration. On July 5, 1974 the French government closed the country's borders to immigration and have not reopened them since. Following that date a more severe attitude towards clandestine immigration became evident. Despite the anti-immigration policies of the 1974-81 period the number of foreigners residing in France did not diminish. 3 basic goals guided the new government in the development of its policies: to limit the entry of new foreigners; to end the precariousness which has characterized the existence of many immigrant families in France; and to examine immigration problems through bilateral negotiation with various sending countries. The immigration policy developed and carried out by the Mitterand administration during its first 15 months in office expressed an attitude of generosity towards established immigrants and external rigor vis-a-vis new immigration. The generosity of the new government is evident in the limitations placed on expulsion and detention, the guarantee of due process of law and all job-related rights for undocumented foreigners, the reaffirmation of family reunification, easier access to "privileged" immigrant status, the extension of the right of employment to foreign students and to Polish and Lebanese refugees, and new legislation guaranteeing the right of association to immigrants. The government's desire to control immigration more effectively is evident in the tightening of control at France's borders and in the substantial increases in sanctions against employers of clandestine workers.     

Argentine experience in the field of illegal immigration

This article provides a brief history of Argentine policy toward migratory flows from neighboring countries and Europe, and concludes with statistics on the number of foreigners in Argentina in the 1970-80 period. Measures passed during the 1940s and 1950s were aimed at providing amnesty for foreigners who were residing in Argentina without immigrant status. However, the lack of an adequate administrative structure to regulate foreigners at the borders was a drawback for migration authorities and limited the possiblility of applying admission criteria effectively. By 1970, there were 583,000 foreigners from neighboring countries living in Argentina, which represented a 25% increase from 1960. 42% of these migrants were in the metropolitan region of the country, indicative of a shift away from employment in agriculture. Decree No. 87, passed in 1974, represented an extension of a migration policy aimed at granting ample facilities for permanent residence to aliens from contiguous countries and was designed to prevent abuse of clandestine workers by employers. As a result of this measure, 150,000 foreigners were able to settle legally in the country. A 1981 law, yet to be implemented, establishes a new legal framework aimed at fostering immigration and regulating the admission of foreigners. To attain the objective of settling workers in areas of the country considered of prime importance to economic development, the law provides for infrastructural investments and promotional measures in areas such as tax exemption and the granting of credit. The 1980 National Population Census indicated there were 677,000 foreigners from neighboring countries in Argentina. In that year, foreigners comprised 2.4% of the country's population and 3.1% of the inhabitants of the metropolitan region. These figures are indicative of a decline in the growth of immigration, most likely due to the decline in the purchasing power of workers' salaries in the late 1970s.     

On the Job: White Employers,Workers of Color,and Racial Triangulation Theory

This article offers that Claire Jean Kim's theory of racial triangulation provides an ideal framework to study workers of color, the racialization of their labor and the ways in which actual and potential employers neglect and discriminate against these workers. Specifically, the piece determines that racial triangulation theory bolsters analysis of race‐based power that employers exert in the construction and maintenance of racial inequality in regard to management of labor and employment possibilities for workers of color. A triangulated approach allows for a sharp focus on employer engineered labor market inequality as they oversee, hire, and refuse to be racially inclusive in hiring practices. Most significantly, racial triangulation theory addresses the forces of racial inequity within the meso‐level of U.S. social structure when applied to study of organizational dynamics such as workplaces. I open the article by assaying historical and contemporary studies on workers of color to illustrate white employer domination and the ways in which workers of color are referenced to each other as inferior and superior workers. Subsequently, the article looks to fresh analytical directions in which sociologists can evaluate racism as a triangulated, multidimensional social force in the workplace and other social contexts.     

The role of the health care sector in the U.S. economy

This Issue Brief discusses factors that contribute to the growth of health care expenditures and the reasons that many individuals, employers, and policymakers consider health expenditures too high. In addition, it describes various industries that make up the health care delivery system and their role in the U.S. economy as employers, producers, exporters, and suppliers of research and development. The report also discusses the economic implications of rising health care expenditures for individuals, employers, and the federal government and the potential impact of proposed health care reform on the health care sector and the U.S. economy as a whole. Health care delivery industries such as pharmaceuticals and medical equipment suppliers have higher than average research and development levels, in addition to a positive balance of trade. Moreover, while the total number of jobs in the private sector declined between 1990 and 1993, the number of jobs in the relatively high paid health services sector continued to grow. In aggregate, employer spending on health care represents only 6.6 percent of total labor costs. In comparison, wages and salaries represent 83 percent of total labor costs. Consequently, the growth rate of health care expenditures has a smaller impact on the growth rate of total compensation than does the growth rate in wages and salaries. Using job multipliers developed by the U.S. Department of Commerce, it is estimated that the 18,600 health care services jobs in Rochester, Minnesota in 1993 created another 32,000 jobs in the area. Any contraction of the health care sector in cities that have a large concentration of employment in health services would result in reduced employment in restaurants, retail stores, janitorial services, and other local businesses. EBRI's simulations estimated that between 200,000 and 1.2 million workers could become unemployed as a direct result of a mandate that employers provide health benefits to their employees, assuming that wages and salaries did not adjust at all. Others find that approximately 50,000 individuals would lost their jobs, assuming that wages and other labor costs adjust downward to completely account for increased costs. As is apparent, the estimates of job loss (and of the total costs of the policy) are extremely sensitive to the assumptions used in the simulation.     

Incentives for International Migration of Scientists and Engineers to Japan

Many developed countries, welcome foreign talent, and Japan is no exception. The Japanese government has developed programmes for expanding the acceptance of foreign labour in specialized and technical fields, in order to compete with foreign nations in the global economy and accommodate the highly specialized domestic industrial structure. This paper focuses on scientists and engineers (S&E) as a component of the highly skilled labour force, and examines their incentives for migrating to Japan, which is one of the most technologically advanced countries in the world. According to a survey conducted in 2004, the majority of S&E working in Japan migrated from Asian nations, and many obtained their doctoral degrees in Japan and continued to stay in the country to work. Key incentives for migration are Japan’s high level of science and technology, opportunities to acquire cutting‐edge knowledge, and prospects for improving performance in an environment with large budgets, superior equipment and facilities, and good quality human resources. In particular, the technological environment is influential for S&E from countries with a significant technological gap when compared with Japan. However, this does not mean that S&E are indifferent to monetary rewards. The salary gap, which is considered to be a major factor in international mobility in to traditional economic theory, has also proven to be a significant incentive, particularly for S&E from countries where the gap in gross domestic product (GDP) per capita compared with Japan is large. In addition, cultural and social aspects of Japan attract mainly young S&E. The attractiveness of Japanese culture, opportunities to learn the Japanese language, and chances to build a network of personal contacts are important incentives for migration. This study presents some policy implications for countries competing over capable S&E.     

MINIMUM WAGE EFFECTS WITH OUTPUT STABILIZATION

What are the effects of legal minimum wage rates on the U.S. economy? Does minimum wage legislation promote the economic self-interest of high wage union labor and impede the economic self-interest of capitalists as our earlier research [Cox and Oaxaca 1982] suggested? This paper uses a nine sector econometric/simulation model of U.S. industry from 1975–1978 to answer these questions in the context of stabilization policies which hold aggregate real output constant. While most simulated percentage effects are small, those for the unskilled workers themselves are not. A 15.7 percent increase in the average nominal wage rate of unskilled labor, as a result of minimum wage legislation, produced an 11 percent decrease in unskilled employment, 2.2 million jobs lost, while increasing the real wage of unskilled workers by 15 percent. Simulated changes in several key variables support our earlier observations that the self-interests of labor unions, with skilled workers, conflict with those of capitalists over the issue of minimum wage legislation.     

The retirement system in transition: the 2007 Retirement Confidence Survey

WORKERS SLOW TO SEE OR ADAPT TO A CHANGING U.S. RETIREMENT SYSTEM: The 17th annual wave of the Retirement Confidence Survey (RCS) suggests that American workers may be slow to recognize how the U.S. retirement system is changing, and those who are aware of these changes may not be adapting to them in ways that are likely to secure them a comfortable retirement. HALF OF WORKERS LESS CONFIDENT ABOUT PENSION BENEFITS: The RCS finds pension-plan changes by employers have left nearly half of workers less confident about the benefits they will receive from a traditional pension plan, but that those experiencing a decline in retirement benefits often fail to react constructively. Moreover, although Americans will rely increasingly on 401(k) retirement savings plans and other personal savings and investments to fund their retirement security, data suggest that many may not follow professional investment advice when it is offered to them. MANY WORKERS COUNTING ON BENEFITS THAT WON'T BE THERE: Many workers are counting on employer-provided benefits in retirement that are increasingly unavailable. Only 41 percent of workers indicate they or their spouse currently have a defined benefit pension plan, yet 62 percent say they are expecting to receive income from such a plan in retirement. Likewise, workers are as likely to expect as retirees are to receive retiree health insurance through an employer, even though the number of employers offering this benefit to future retirees is declining. MANY WORKERS UNLIKELY TO HEED INVESTMENT ADVICE EVEN IF THEY GET IT: More than half of workers indicate they would be likely to take advantage of professional investment advice offered by companies that manage employer-sponsored retirement plans. However, two-thirds of these workers say they would probably implement only some of the recommendations they receive and 1 in 10 think they would implement none of them. AMERICANS OVERESTIMATE LONG-TERM CARE COVERAGE: One-quarter of workers and more than one-third of retirees report they have long-term care insurance (separate from health insurance, Medicare, and Medicaid) to help pay for care they might need in a nursing home, assisted living facility, or at home. But only 10 percent of Americans age 65 and older are estimated to have had private long-term care insurance in 2002, suggesting that many are counting on coverage they do not actually have. MOST SAVINGS LEVELS ARE MODEST: Almost half of workers saving for retirement report total savings and investments (not including the value of their primary residence or any defined benefit plans) of less than $25,000. The majority of workers who have not put money aside for retirement have little in savings at all: Seven in 10 of these workers say their assets total less than $10,000. CONTINUED IGNORANCE ABOUT SOCIAL SECURITY COVERAGE: Despite the longstanding increase in the eligibility age for Social Security, only a small minority of workers are aware of the age at which they can receive full retirement benefits from Social Security without a reduction for early retirement.     

IMPLICATIONS OF IMMIGRATION POLICIES FOR THE U.S. FARM SECTOR AND WORKFORCE

We develop a theoretical model using migration and trade theory to examine the effects of domestic and border enforcement policies on unauthorized workers and the U.S. agricultural sector. The theoretical results show that heightened immigration policies increase the illegal farm wage rate, and reduce the employment of unauthorized farm workers and exports. The empirical analysis show that increased domestic enforcements curtail the number of undocumented farm workers by an average of 8,947 and commodity exports to Mexico by an average of $180 million. The tighter border control curbs illegal farm workers by 8,147 and reduces farm exports by $181 million. (JEL F160)     

Small employers and health benefits: findings from the 2002 small employer health benefits survey

Overall, 19 percent of small employers offering health benefits made changes to their health plan between 2001 and 2002. Sixty-five percent increased deductibles and co-pays; 35 percent switched insurers; 30 percent increased the employee share of the premium; and 29 percent cut back on the scope of benefits. Twenty-six percent increased the scope of benefits offered. Nearly one-quarter of small employers offering health benefits think their firm would change coverage and 3 percent think it would drop coverage if the cost were to increase an additional 5 percent. Most small employers offer sound business reasons for offering health benefits to workers. Many report that it helps with employee recruitment and retention, and increases productivity. More than three-quarters report that offering health benefits is "the right thing to do." Most small employers that do offer health benefits report that it has a positive impact on various aspects of the business, such as recruitment, retention, employee attitude and performance, employee health status, and the overall success of the business. Most small employers that do not offer health benefits tend to think that not offering them has no negative impact on the above aspects of their business or the overall success of the business. However, those not offering benefits are more likely than those offering them to report that most of their employees are high-turnover and stay on the job only a few months. Small employers that offer health benefits tend to be distinctly different from those not offering them. Worker income in firms not offering health benefits tends to be considerably lower than in firms that do offer them. Employers not offering health benefits are more likely than those offering them to have a smaller proportion of full-time employees, and employers that do not offer health benefits have a larger proportion of females, workers under age 30, and minority employees. Of small employers that offer dependent coverage, more than 40 percent report that workers do not take coverage for their dependents because the dependents have coverage from somewhere else, but 35 percent report that employees decline dependent coverage because they cannot afford the premiums. Many small employers that do not offer health benefits are potential purchasers. Eleven percent are either extremely or very likely to start offering health benefits in the next two years, and 22 percent are somewhat likely to start offering health benefits.     

Local Produce,Foreign Labor: Labor Mobility Programs and Global Trade Competitiveness in Canada*

Abstract Temporary visa workers are increasingly taking on a heightened profile in Canada, entering the workforce each year in greater numbers than immigrant workers with labor mobility rights (Sharma 2006). This paper examines the incorporation of foreign workers in Canadian horticulture under the Seasonal Agricultural Workers Program (SAWP). I argue that foreign labor supplied under the SAWP secures a flexible workforce for employers and thus improves Canada's trade competitiveness in the global agrifood market. Using multiple research strategies, I track the evolution of Canadian horticulture in the global market and the transformation of labor in this industry. I outline the steady growth in the employment of temporary visa workers in the horticultural industry and show how they have become the preferred and, in some cases, core workforce for horticulture operations. The benefits of SAWP workers to employers include the provision of a workforce with limited rights relative to domestic workers and considerable administrative support in selecting, dispatching, and disciplining workers provided at no cost by labor supply countries. I conclude that the SAWP is a noteworthy example of the role of immigration policy in regulating the labor markets of high‐income economies and thus ensuring the position of labor‐receiving states within the global political economy.     

EDUCATION AND OCCUPATIONAL SEX SEGREGATION:

Occupational sex segregation is estimated to account for a substantial portion of the sex gap in pay for full-time, year-round workers (England 1992). Although women's representation in many formerly male-dominated occupations has increased since 1972, women are still underrepresented in engineering. In 1993 women were awarded 14 percent of all engineering bachelors degrees and accounted for 8 percent of the U.S. engineering labor force. This study uses data from the 1980 senior sample of the High School and Beyond national longitudinal survey to model sex differences in the choice of engineering in college. Multinomial logit models of major choice are constructed as a function of individual-level attributes associated with high school preparation and gender role attitudes. Decomposition analysis indicates that average sex differences in these two areas explain between 8.8 and 33.4 percent of the sex gap. Policy implications are discussed.     

The impact of Chilean migration on employment in Patagonia

This paper discusses the employment situation of Chilean migrant workers, their impact on labor markets in Patagonia, Argentina, and the government's past and projected responses to this phenomenon. In 1980, Chilean inhabitants of patagonia comprised 11% of the area's population. Chilean migration to patagonia was closely linked to economic activities that began to flourish in the 20th century, such as livestock raising, fruit and vegetable cultivation, and mining for coal and petroleum. No Chilean migrants work in a wide range of sectors. In Patagonia's southern provinces availability and ability to withstand rigorous climate conditions are the main factors which account for the prevalence of Chilean manpower. Chilean migrants do not in general displace local manpower. Legislation and the permeability of the border ensure that most workers enter the country as tourists. Clandestine migration is not an issue. Illegal migrants have provoked negative reactions for several reasons: 1) they comprise a marginal population without formal citizenship; 2) being employed as clandestine workers, they pay no social security, nor do their employers; 3) being illegal, they are obliged to accept lower wages and inferior working conditions which creates unfair competition within labor markets; and 4) as a result of these conditions, xenophobic and endophobic attitudes in relations with Argentine nationalists are reinforced. The government has attempted to solve these problems through various measures. Beginning in 1934, most foreigners entered Argentina with a tourist visa, becoming illegal when they stayed beyond authorized limits. Several measures over the years provided amnesty to illegal migrants. Currently, the law promotes immigration, monitors the admission of foreigners to the country and stipulates their rights and obligations. The law lists 115 articles on immigration promotion and on regulation of the movements of foreigners. Because of the present economic crisis in Argentina, authorities are investigating the effect of Chilean manpower on Argentine labor markets.     

Unauthorized workers and immigration reform: what can we ascertain from employers?

The Immigration Reform and Control Act of 1986 attempts to curb unauthorized migration by requiring employers to screen the authorizing documents of all workers. Many different documents may be used, with employers required to simply attest to the face validity of workers' documents upon an I-9 form. The authors report findings from their study estimating the unauthorized US labor force and exploring employers' initial reactions to the passage of the Immigration Reform and Control Act (IRCA) of 1986. The findings are based upon hiring practices information supplied by a sample of businesses in an evaluation of the IRCA impact. A selectivity correction model is used to impute 2.6 million unauthorized workers in the entire sample. The estimate, which compares favorably with other estimates, is tabulated by questions about IRCA. Findings suggest that a large proportion of the unauthorized labor force uses fraudulent documents, many without the knowledge of their employer. It appears that Immigration and Naturalization Service-targeted establishments hire 20% of unauthorized workers and that the employers of unauthorized workers are no more likely than other employers to believe that they can be sanctioned under IRCA. This may be associated with the apparent lack of marked change in patterns of unauthorized hiring in the period immediately following IRCA passage. There was some change in hiring behaviors in establishments hiring unauthorized workers, affecting wage offers and documentation, but US employers do not seem to perceive changes in the supply or availability of authorized workers. Study findings indicate only marginal IRCA-related changes in the characteristics of unauthorized hires during the very initial phase of IRCA's implementation. The combination of readily available fraudulent documents, the difficulty in detecting such documents, and the steady demand for low-skilled workers creates conditions which are not conducive to markedly changed hiring behavior.     

The Changing Legal Status Distribution of Immigrants: A Caution

This article presents arguments and data to show that the decennial census and annual Current Population Surveys include immigrants falling into four broad legal status groups: naturalized citizens; legal immigrants; legal nonimmigrants; and undocumented migrants. Since 1986, the relative rewards and penalties imposed on these four categories have shifted dramatically in response to U.S. policies, as have the relative number of foreigners in each group. In general, the relative share of foreigners in the most vulnerable status groups has increased, with the proportion of undocumented migrants and legal nonimmigrant rising and that of legal immigrants falling. Researchers using census and CPS data need to be aware of the shifting distribution of foreigners by legal status over time and of the changing profile of opportunities experienced by each status group, and they need to exercise caution in their interpretation of trends with respect to immigrant assimilation and the effects of immigration on U.S. society.     

Skill deficiencies: Problems,policies, and prospects

What evidence points to a shortage of skills, a condition that keeps the U.S. economy off its “optimum” path? First, the literacy of job seekers, as surveyed by the Educational Testing Service, is inconsistent with acceptable alternative growth paths as projected inWorkforce 2000. Second, data on specific jobs show skill requirements increasing. Third, employers are paying more for higher education and workers with less education are being paid less. Integrating school and work, by applying the findings of the Secretary’s Commission on Achieving Necessary Skills (SCANS), is a way to lessen the shortage, an opportunity likely to be favored by the new administration.