Visa restrictions & the economyNew Visa Restrictions Will Make U.S. Economic Downturn Worse

Published 8 June 2020

The Trump administration is expected to set limits on a popular program — the Optional Practical Training (OPT) — which allows international students to work in the U.S. after graduation while remaining on their student visas. The administration says the aim is to help American graduates seeking jobs during the pandemic-fueled economic downturn. Economists, however, argue that immigrant rights enhance the lives and livelihoods of native-born workers in many ways.

The Trump administration is expected to set limits on a popular program that allows international students to work in the U.S. after graduation while remaining on their student visas. The restrictions on the Optional Practical Training (OPT) program are designed to help American graduates seeking jobs during the pandemic-fueled economic downturn; however, the move is likely to further hurt the economy, according to new University of California San Diego research on immigrant rights.

In a new research paper, economists find that immigrant rights enhance the lives and livelihoods of native-born workers in many ways. Drawing from a sweeping collection of studies on the U.S. labor market over the past century, the paper is the first of its kind to look at how legal protections for immigrants affect domestic workers of immigrant-receiving countries in terms of generating income, innovation, reducing crime and increasing tax revenues.

One in eight persons living in the United States was born in a different country.  Therefore understanding the impact of migrant worker rights on receiving economies is crucial to immigration policymaking, especially with the White House’s immigration policies growing more exclusionary during the COVID-19 pandemic.

This time the political restrictions seem to be on high-skill foreign-born, like students, OPTs and those with H1B visas,” said Gaurav Khanna, co-author and assistant professor of economics at the UC San Diego’s School of Global Policy and Strategy (GPS). “Many high-skill workers have lost their jobs, which means many will have to leave the country soon. When the U.S. crisis abates, there may be a scarcity of high-skill professionals, which could stall a robust recovery.”

Legal Protections for Immigrants Aid Entrepreneurship and Innovation
UCSD notes that about 45 percent of Fortune 500 companies were founded by immigrants or children of immigrants. These companies amass more than $6 trillion in revenue per year and include tech-giants like Google-Alphabet, Microsoft, Tesla and Apple. With one in four of computer scientists born in a different country, the U.S. immigrant workforce comprises of many of Silicon Valley’s top entrepreneurs, current CEOs or company founders.

As entrepreneurs know, starting a business requires a lot of money up front while the return on investment may take years, but the benefits to the local populations prove to be very positive from the start.