the economic impact of h-2b workers

8/7/2019 The Economic Impact of H-2B Workers

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THE ECONOMIC IMPACT

OF H-2B WORKERS


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ABOUT The U.S. ChAmBer O COmmerCeT U.S. Cab o Coc is t wolds last busiss datio psti o ta 3 illio busisss ovy siz, scto, ad io. T Cabs Labo, Iiatio & eploy Bts Divisio oulats ad aalyzst Cabs policy i t aas o labo law, iiatio, psio ad alt ca. T Divisio ulaly paticipatsi, ad sotis cai, atioal coalitios to lp d ad sap atioal labo, iiatio ad ploy btspolicy. mo ioatio at www.uscab.co/issus/lib_policy.

ABOUT ImmIgrATIOnWOrkS USAIiatioWos USA is a atioal datio o sall busiss ows advocati iiatio o. Toaizatio lis 25 stat-basd, po-iiatio busiss coalitios: ploys ad tad associatios o loidato Oo ad o vy scto o t cooy tat lis o iiat wos. IW coodiats ad suppots tsoups as ty t o btt iiatio law i Wasito ad i t stats. T oaizatios twi oals: to ducatt public about t bts o iiatio ad build a aista assoots costitucy i avo o o.


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THE ECONOMIC IMPACT OF H-2B WORKERS

Octob 28, 2010

T Labo, Iiatio & eploy Bts divisio o t U.S.Cab o Coc ad IiatioWos USA a plasdto pst tis ipotat study o t cooic ipact o th-2B visa poa.

may Aica busisss could ot uctio witout t h-2Bpoa. Sall, diu-sizd ad la ploys i vy ioo t couty cout o it to p ti busisss op ad owi, ad to cat oppotuitis o U.S. wos.

Yt t poa is ud costat attac by citics, wo all too ot a a cas basd o toic ad ypotticalscaios, ot ad cooic data.

Tis pot uss oiial cooic aalyss to xai t tu cooic cts o t h-2B poa.

T studys picipal dis: tat cotay to citics clais, t h-2B visa poa dos ot dpss was o U.S.wos i siila occupatios, ad h-2B wos do ot ta jobs o ti U.S. coutpats.

Supplti ts co dis is tstioy o ploys wo us t poa ad also sval illustativpols o a h-2B ploy, a h-2B wo ad a couity tat dpds o a h-2B wooc. Tis acdotalatial dostats t ay bts o t poa but also t ustatios o dali wit its buaucatic adulatoy coplxity.

eploys wo us t h-2B poa a ploys dtid to ollow t law. h-2B ad ot tpoay wo

poas povid a lal wooc o U.S. copais w U.S. wos a uavailabl. T poas also allowoi wos looi o a ost way to a a livi to t t couty i a sa, cotolld a. I otwods, t poas dot just p t U.S. cooically coptitiv, ty also cotibut to bod scuity adac t ul o law.

Coss ad t adiistatio sould b looi o ways to xpad ad ipov tpoay wo poas otaddi lays o buaucacy ad additioal ulatios tat a t poas all but ipossibl to us.

Tis pot lavs o doubt about wat ust b do: cut budso ulatio, stali pocssi ad atpoay wo poas o ssitiv to cai U.S. labo at ds.

Sicly,

radl k. Joso Taa JacobySio Vic Psidt Psidt & CeOLabo, Iiatio & eploy Bts Iiatio Wos USAU.S. Cab o Coc

FOREWORd


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THE ECONOMIC IMPACT OF H-2B WORKERS2

The eCOnOmIC ImPACT O

h-2B WOrkerSEXECUTIVE SUMMARY

T h-2B poa allows ploys to bi low-silld oi wos ito t Uitd Stats to ll tpoayad sasoal jobs i sctos ot ta aicultu. La ad sall ploys i vy stat ad i a wid vaity oidustis tu to t poa w ty caot i ou U.S. wos.

h-2B visa olds play a sall ol i t U.S. cooy. T ub o visas is cappd at 66,000 p ya, adh-2B wos accout o lss ta o-tt o o pct o total U.S. ployt.

Dspit t sall siz o t poa, ay ploys wo us it say ti busisss would av to dowsiz oclos i h-2B wos w ot availabl. Ad h-2B visas a sstial to sval ioal sasoal idustis tatsustai t cooy i ti stats: saood pocssi o maylads east So, stauats ad is o na-tuct ad si sots i Coloado, ao ot busisss.

T h-2B poa is subjct to uc citicis o labo uios ad ots wo clai tat it allows ploys toxploit oi wos ad udis Aica wos wos was su as a sult. ecooic aalysis coduct-d o tis pot ds o vidc to suppot ts clais. Tis study dos, owv, d tat t poa could bsiicatly ipovd by stalii its coplx quits ad ai it o sposiv to at ocs.

Copais ust t a coplicatd st o quits bo ty ca i h-2B visa olds, icludi aixtsiv ots to cuit U.S. wos. eploys ust l papwo wit ou ovt acis. Ty ust ob-tai tpoay labo cticatio o t Dpatt o Labo (DOL), ad ti ptitio o a oi wo ustb appovd by U.S. Citizsip ad Iiatio Svics (USCIS). Busisss ust dostat tat ti d o aoi wo is tpoay, ad ty ust pay at last t ovt-adatd pvaili wa o t job.

Ts quits a oous o ay copay, but paticulaly o t sall ad diu-sizd busisss tatacdotal vidc susts a t avist us o h-2B visas. (La copoatios ad sta acis also ust poa, but t ava ploy applis o just 15 wos a ya.)

Still, dspit t coplx quits, t dad o h-2B wos xcds t ub o visas availabl alostvy ya.

T h-2B poa os a ipotat saty valv o ploys wo d wos o a tpoay basis wU.S. wos a ot availabl.

I a suvy o h-2B ploys coductd o tis pot by IiatioWos USA ad t U.S. Cabo Coc, spodts idicatd tat ty i h-2B wos piaily bcaus w U.S. wos aitstd i tpoay o sasoal wo. Accodi to ploys, t pysically dadi atu o aysasoal jobs also as t uappali to ay U.S. wos.

A oiial cooic aalysis coductd o tis pot cocluds tat t ub o h-2B wos icas-s w local labo ats tit. I ot wods, a o tai jobs o Aicas, h-2B visa uscolats wit higher U.S. ployt ats. T aalysis copad stat-by-stat data o h-2B adissioswit stat uployt ad ployt owt dui t piod o 2006 to 2009. T copaiso


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sowd tat t ub o h-2B wos adittd icass as uployt ats all ad ploytowt acclats. Spcically, i t ava stat, w ployt owt icasd by 1 pctapoit, ploys bout i 216 additioal h-2B wos. Tis is cosistt wit sposs to t Ii-

atioWos-Cab suvy idicati tat t h-2B poa lps ploys ll positios w U.S.wos a scac.

eploys pot tat t bts o usi t poa o byod povidi t wit dd wos.

Accodi to suvy spodts, h-2B wos cat jobs o Aicas. By auti t volu obusiss bi do by t copay, visa olds ot allow ploys to i o U.S. wos osilld, ya-oud jobs. Tis clai is cosistt wit a 2008 cas study o t maylad cabbi idustytat oud t h-2B poa psvd ad sustaid jobs.

T poa ca duc uctaity o ploys wo stul to t custo dad wit a uctaiad fuctuati local wooc. Suvy spodts cotd tat i t h-2B poa did ot xist, tywould av to tu away busiss w ot ou U.S. wos a availabl.

Suvy spodts paisd h-2B wos liability ad poductivity. may cotd tat h-2B wosa as coptt as U.S. wos.

hii t sa wos ya at ya lps duc busisss cuitt ad taii costs.

T is o piical suppot o clais tat t h-2B poa advsly acts U.S. wos. Idd, t DOL willot appov a ploys applicatio o h-2B wos ulss it cocluds tat U.S. wos will ot b advslyactd. Ad sii o liiati t poa would lily ut Aicas o ta it would lp t,duci job oppotuitis o U.S. wos.

Tis pot addsss ay cocs ad iscocptios about t h-2B poa.

A scod oiial cooic aalysis coductd o t pot sows tat icass i t ub o h-2Bwos do ot ativly act U.S. wos ployt o ais owt. T aalysis copad wasi sctos tat ly avily o h-2B visa olds wit was i ot idustis tat i w o o tpoaywos. T sults: accodi to t aalysis, t ub o h-2B wos i a iv ld as o ativct o U.S. wos ployt o ais. Spcically, t sults idicat tat a 1 pcta poiticas i h-2B wos i a iv occupatio i a iv ya is associatd wit was i tat occupatioicasi 0.05 pcta poits ast ta ty otwis would av ov t xt calda ya, adwit ployt also icasi 0.05 pcta poits ast. Ts a sall cts ot supisi sich-2B is a sall poa. But t act is, t dictio is positiv t h-2B poa is ot avi a advsipact o U.S. wos.

O-tid o t spodts to t IiatioWos-Cab suvy said ty would duc opatios oclos copltly i ty w ot abl to i h-2B wos. Doi so would duc jobs o U.S. wos.

T h-2B poa icluds siicat wo potctios o bot U.S. ad oi wos.

Cocs about abuss by sta acis ad oi cuits ca b addssd tou oct oxisti ulatios witout ajo cas to t poa.

eploys wo i h-2B wos a so valid coplaits about t poa. Addssi ts cocswould a it o cit.


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rspodts to t IiatioWos-Cab suvy potd tat i ost yas t aual cap o 66,000h-2B visas is too low to t busiss ds.

rspodts coplai tat t poa is so coplicatd ad dicult to apply o tat it discouas aysall busisss o usi it.

T poas coplxity cats a at o sta acis, wic bi i la ubs o h-2B wo-s ad subcotact t out to sall copais.

Stalii ad sipliyi t poas quits would a it o cit ad duc t budsit iposs o ploys. Stalii would also duc t d o sta acis ad t pobls as-sociatd wit t.

mai t cap o fxibl ad basi it o t fuctuatios o t at would a t poa ocit ad ac its cooic bts.

T cooic aalysis coductd o tis pot dostats tat t h-2B poa dos ot advsly act U.S.wos ployt o ais. eploys cosisttly idicat tat t poa abls t to ll jobs tat aot bi lld by U.S. wos. eploys also pot tat usi t poa abls t to i o U.S. wo-s o lativly i-silld jobs tat suppot o ly o positios ld by h-2B wos.

Dspit ts bts, t ub o h-2B wos is cappd at a vy low lvl, ad ploys ust jup toua coplx ad oous st o oops i od to av accss to visas. T poas cooic bts could bsiicatly acd by sipliyi ts coplx quits ad ai t cap o fxibl ad sposivto at ocs.

THE H-2B PROGRAM

T h-2B poa allows U.S. ploys to i oi wos to ll oaicultual jobs o a tpoay basis.A h-2B visa allows a ploy to bi a oi wo ito t U.S. o up to 10 ots at a ti. most ots wos a lativly low-silld ad wo i sasoal jobs, ot i oapic aas w t ub oavailabl U.S. wos is liitd.

eploys us o t h-2B poa as ow siicatly sic it was catd by t 1986 Iiatio road Cotol Act (IrCA) to t poit tat h-2B wos a ow sstial to t opatio o sval U.S. idus-tis. T ladscapi idusty is t last ploy o h-2B wos. Ot sctos tat dpd avily o tpoa iclud t cabbi idusty o maylads east So, t ospitality scto o natuct, si sotsi Coloado, ad usy ad osty opatios i all 50 stats. I additio to ii h-2B wos o sasoaljobs, all o ts idustis also i U.S. wos, bot dui ti pa sasos ad ya-oud.

T h-2B poa is pat o t alpabt soup o U.S. iiatio policy, o o t t picipal poas tat

allow ploys to bi tpoay wos ito t Uitd Stats. T ot two ost widly usd tpoaywo visa poas a h-2A, wic allows ploys to bi i low-silld aicultual wos o up to oya, ad h-1B, wic allows ploys to bi i silld wos wit coll ds o spcializd owldo at last t yas. A wo wit a h-2B visa ca typically wo o a U.S. ploy o up to t ots,altou t wo ca ov to ot h-2B ctid jobs ad ai i t U.S. o up to t yas. Uli h-1Bwos, a idividual o a h-2B visa caot apply o pat sidc wil livi ad woi i t U.S.


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The H-2B Process

T h-2B pocss ivolvs a coplicatd st o quits ad dadlis tat busisss ad oi wosust t.

ist, a copay ust qust t pvaili wa o t spcic occupatio ad oapic aa o tDpatt o Labos natioal Pvaili Wa ad hlpds Ct. Tis pocss ca ta up to 30 days.T pvaili wa is t ava wa paid to wos i a iv occupatio i a iv aa, as dtidby DOL.

Copais ust t cuit U.S. wos to ll op positios. At a iiu, a ploy ust u twoads o t job i a wspap i t aa o itdd ployt, icludi i a Suday ditio i possibl.

T ploy ust also post t job wit t Stat Wooc Acy. no o tis quid cuittay bi o ta 120 days bo t d o t h-2B wo. T ploy ust advtis o at lastt days. T copay ust p dtaild cods o t cuitt pocss, i all qualid U.S. woswo apply ad docut t ub o positios it was uabl to ll. T ploy ust p cuittcods o t yas ad ay b auditd by DhS o DOL at ay ti.

I a ploy is uabl to ll t advtisd job wit a U.S. wo, t copay ay l a applicatiowit DOL o tpoay labo cticatio (eTA o 9142). Tis six-pa o quis ploys to d-ostat tat ti d o oi wos is tpoay it a o-ti occuc o a sasoalo pa-load o itittt d. Ty ust spciy pcisly wat t dsid wos job dutis adwas will b, dtail ti ots to cuit U.S. wos ad attst tat siilaly-ployd U.S. wos willot b advsly actd by ployt o h-2B wos. histoically, it as ta a ava o 60 days oDOL to pocss a applicatio.

I a copays labo cticatio applicatio is appovd, t ploy t ca ptitio t Dpatto holad Scuity (DhS) to adit a spcid ub o h-2B wos. eploys l ti ptitio oa oiiat, o tpoay, wo (o I-129) wit t DhS U.S. Citizsip ad IiatioSvics divisio. T is cutly $320 plus a additioal $150 o aud pvtio ad dtctio. TI-129 o is 26 pas lo, at last i pas o wic ust b copltd by ploys ptitioi o ah-2B visa.

USCIS accpts ptitios o cosidatio oly i t h-2B visa cap o t ya as ot yt b acd. Tcap was acd vy scal ya btw 2004 ad 2008, typically witi ou ots o t stat o tli piod.

At t ploys ptitio is appovd, t a ut quits o t oi wo a tid ap-plicatio pocss, tis o at t Stat Dpatt.

A oi wo wo is outsid t U.S. ust apply to t Stat Dpatt o a h-2B visa. Tis typicallyquis a i-pso itviw at a U.S. bassy o cosulat. T pospctiv wo ust b abl to d-ostat tat o s itds to tu o at is o visa xpis. I appovd, t oi wocivs a h-2B visa ad ca t apply to U.S. Custos ad Bod Potctio o adissio.


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Li alost all tpoay ad pat visas, t h-2B poa is liitd: ts a quota o t ub o visasavailabl ac ya. I 1990, Coss cappd h-2B visas at 66,000 p scal ya. Tis cap was it st i Y 2004ad t aai i ac o t ollowi ou yas. Oc t cap is it, USCIS stops accpti tpoay wo

ptitios, ad o o visas a issud util t xt scal ya. I USCIS as alady accptd o ptitios tat ub o visas availabl by t ti t cap is it, t acy olds a lotty to allocat t visas.

I 2005, i spos to coplaits about t bidi visa cap ad its possibly dvastati cts o sval sp-cic sasoal idustis, Coss passd t Sav Ou Sall ad Sasoal Busisss Act, ai two ipotatcas to t h-2B poa. T st ca split t 66,000-visa aual quota i two ad allocatd ac al too al o t scal ya, ai 33,000 visas availabl o a st-co, st-svd basis i Octob ad aot33,000 availabl i Apil. Tis lps su tat ploys wos d o h-2B wos bis lativly lat it scal ya o xapl, su sots av a qual cac o scui h-2B wos. Uusd visas do otoll ov to t xt scal ya, but sic 2005 ay visas ot usd i t st al o a scal ya av olld ov tot scod al.

T scod ca, passd o a o xpital basis it would xpi at a ya i ot wd allowd

ploys to bi i siicatly o h-2B wos ac ya by xpti wos wo ad paticipatd i tpoa i pvious yas o couti aaist t aual visa cap. o 2005 tou 2007, tui h-2Bwos wo ad alady b coutd aaist t cap i t pvious t yas w atd h-2r visas adw xpt o t cap o 66,000. T xcptio ld to a la icas i t ub o h-2B visas issud i2006 ad 2007 (s Figure 1). T tui wo xptio was wd oc, i 2006, but it xpid at t do t 2007 scal ya ad as ot b autoizd by Coss i t yas sic.

T h-2B poa statd o sall but as ow daatically ov ti.

T poa ot o to a slow stat, pobably o two asos. ist, t lislatio tat catd it also lalizdalost t illio uautoizd iiats alady livi ad woi i t U.S., povidi a apl supplyo low-silld oi wos o sasoal ploys to daw o. Scod, ploys w iitially luctat to us

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1987 1992 1997 2002 2007

: . . . : . . .

. : . . . .

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1987 1992 1997 2002 2007

: . . . : . . .

. : . . . .

H-2B VISAS ISSUED

(FY 1987 - 2009)

Figure 1

The number of visas rose steadily in the late 1990s, then fell dramatically in 2007 with the expiration of the returning-worker exemption and the onset of the recession.

Includes H-2B renewals and H-2R visas issued from 2005 through 2008.

Data for 2009 are preliminary estimates.

SOURCES: www.travel.state.gov/xls/NIVIssuedFYs1989-2009-Detailed.xls and www.travel.state.gov/pdf/NIVClassIssued-DetailedFY1987-1991.pdf.


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t h-2B poa bcaus o its coplxity. Ov ti, IrCA lalizatio bciais ovd ito ot jobs, soploys dd a w souc o usilld wos. eploys vtually bca o ailia wit t h-2Bpoa, ad t applicatio pocss was stalid ud t Bus adiistatio.

As Figure 1 sows, dad xplodd i t lat 1990s, ad t ub o h-2B visas issud ac ya os stadilyutil t d o t h-2r poa ad t ost o t cssio i 2007. T h-2B poas owt fcts tcoutys lativly sto cooic owt dui uc o tis piod. As U.S. uployt ats ll ad laboats titd, t poa bca icasily ipotat to busisss i sasoal ad ot cooic sctos.Wit t cooy booi, ploys dd o wos. U.S. wos oud it possibl to ov asily itoot, btt jobs. Ad o ad o ploys tud to t h-2B poa, wic o ta quadupld i sizo 1997 tou 2007, but as doppd sic t cssio.

eploys ust t a coplx st o quits bo ty ca i h-2B wos. Ts iclud cuitiU.S. wos, payi t pvaili wa ad civi appoval o DOL, USCIS ad t Stat Dpatt. (See

p.5, The H-2B process, or details.)

Ud ctai cicustacs, a tpoay positio bi lld by a h-2B wo ca b xtdd to lasto up to t yas istad o t typical t ots. I suc cass, t ploy ust tst t labo a-t aually to s i ay U.S. wos a itstd i t positio bo t copay ca i a h-2Bwo aai.

oi wos also ust t ctai quits. most ipotatly, pospctiv wos ust b abl todostat to a U.S. bassy o cosulat tat ty do ot av iiat itt tat ty itd, tat is, totu o at ti h-2B visas xpi. Tis is ot asy. I Y 2009, accodi to t Stat Dpatt, ota 30 pct o pospctiv oi wos wo applid o h-2B visas w tud dow. oi wosust co o a appovd list o coutis. mxicas accoutd o t lios sa o wos adittd i Y2009 o ta all o t ot sdi coutis cobid. But wos also ca o Jaaica, guatala, tPilippis, Sout Aica ad t Uitd kido, ao ot atios. Ay wo wo as ld a h-2B visao t yas is quid to lav t U.S. ad ai outsid t couty o at last t ots bo si

adissio ud t h-2B poa.

All i all, ii a h-2B wo quis dali wit ou spaat ovt acis: t Stat WoocAcy, DOL, DhS ad t Stat Dpatt. Witi DOL, ploys ust dal wit t natioal Pvaili Waad hlpds Ct ad t natioal Pocssi Ct. Witi DhS, ploys ust t pissio o USCISad wos ust ai appoval o Custos ad Bod Potctio. T lvl o dtail ad coplxity i all ouacis h-2B ulatios is astoudi. T istuctios o t labo cticatio applicatio, eTA o 9142,u t pas, wil t DOL al uls o t labo cticatio pocss issud i Dcb 2008 ll 50 pas it dal rist. T istuctios o o I-129, t USCIS ptitio o a oiiat, o tpoay, wo,u 23 pas.

ev tou w i a at to uid ouh-2B ptitio tou t ou ovtacis ivolvd, it is vy ti-cosuio ou oc sta. T a ayovt oops to jup tou, ucpapwo is quid ad t quitsca ac ya.

Landscaper in Texas


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THE EMPLOYER

Jo maldoado, 49, t ow o maldoado Ladscap & Iiatio i nw Bauls, Txas, as b i tladscapi busiss all o is adult li.h statd out as a ta, woi o is at i kvill, Txas, t ovd wit t aily busiss to nwBauls, a sall city btw Sa Atoio ad Austi. T copay povids a a o svics, o ulc adtopsoil wo to istalli iiatio systs.

maldoado said h-2B wos av b sstial to t owt o t busiss ov t yas. T copay dos alot o wo o aby ilitay bass ad public scools, wic ot d la jobs do quicly.

Ty xpct ad dad i quality, maldoado said. Witout h-2B wos, w couldt ly o tti t jobdo.

maldoado says as tid to i local wos but caot d ou wo wat to do sasoal wo. So tud to t h-2B poa twlv yas ao. h ally ploys btw 20 ad 30 oi wos ac ya, adty do vyti o wati ad dii to woi wit avy quipt.

Sval o is h-2B ploys av b wit t copay o t t-o, maldoado says, ad ty tu vyya, abli i to iv t o coplx tass as ty ai xpic.

h watcs ov t caully i ti st ad scod yas to s i ty a o ti ad liabl ad catc o quic-ly to ti assid tass. Tos wo do a wadd wit o sposibility w ty tu t tid ya.

muc as appciats t h-2B poa, maldoado also coplais bittly about it. Papwo tat ds to bpocssd i is to t wos o ti is qutly dlayd by o ovt acy o aot as to dalwit ou to obtai vy visa. h would p it i wos could stay o 10 ots out o t ya, but usually itsoly it.

Wost o all, maldoado says, is t uctaity. hs v su tat is aual applicatio is oi to t tou tpocss bo t poas aual cap o 66,000 visas is acd ad t Dpatt o holad Scuity stopsissui visas.

I tat cap w to b xpadd, all ploys would l a lot o at as, said.

maldoado is also toubld by stictios tat t stat o Txas iposs o h-2B wos. Wat ustats i ost:i Txas, visa olds caot t divs licss o ti psoal us. maldoado is divs to taspot is wo-

s o plac to plac, but blivs ty sould av t it to div lally to t to ad o wo ad s tiailis.

Its ot a ai sa, said. W as a couity ad a couty a btti o t wo ty do. Ty paytaxs. Ty cotibut to Social Scuity. Ad w btti o ta w iai. Popl d to udstad -w tali about lal iiats wo a cotibuti to socity.


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T h-2B pocss quis pcis ad xacti tii o t pat o ploys. T widows dui wic tyust advtis o wos ad l t cuiti pot quid o a labo cticatio a spcid ad sot. Aploy caot bi cuiti wos o ta 120 days bo t copay is oi to d a h-2B wo,ad t ust advtis o at last 10 days.

T cloc ca asily u out o ploys si tpoay wos. A copay caot subit its labo ctica-tio applicatio util it as copltd t cuitt pocss ad oud it ipossibl to i ou U.S. wos.histoically, it as ta a ava o 60 days o DOL to pocss ts applicatios, lavi t ploy just50 days bo its d o tpoay wos ics i a d ot dtid by ixoabl sasoal cas.Dui tat piod, t ploy ust still l a tpoay wo ptitio, t it appovd by USCIS ad d aappopiat oi wo o t job. T tat wo ust apply to DhS ad to t Stat Dpatt, civappoval o bot acis ad tavl to t Uitd Stats.

Dspit t dicultis ivolvd, t dad o h-2B wos usually a outstips t liitd ub o visas avail-abl. Figure 2 sows t ub o positios o wic h-2B wos w qustd ac ya sic Y 2000. (Tubs a basd o labo cticatio applicatios ld wit DOL.) Altou oly 66,000 visas w availabl iost o ts yas, i Y 2009 ploys subittd qusts o o ta 214,000 positios. Idd, t ub olabo cticatio applicatios as a xcdd t ub o visas availabl vy ya o t past dcad.

T DOL dos ot siply ubb-stap applicatios o t cotay. T lit ay aa i Figure 2 is t ubo positios appovd ac ya. T da ay aa is t ub o positios jctd. (Ot positios a toso wic t applicatio was add o witdaw). T bi t da aa lativ to t total i a iv ya,t i t dial at was tat ya a at tat as icasd daatically ov ti. I Y 2009, o ta 25pct o applicatios w did.

H-2B APPLICATIONS

(Labor certifcation applications FY 2000 - 2009)

Figure 2

Demand for H2B visas far exceeds the supply. The Department of Labor denies a large fraction of applications before they are even considered by the immigration

service, USCIS.

Data are by number of positions requested.

Other includes positions for which the application was remanded to either the employer or the state or was withdrawn.


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BENEFITS OF THE PROGRAM

T h-2B poa is citically ipotat o ay busisss tat av diculty di U.S. wos to ll tpo-

ay jobs. Tis is paticulaly tu i sasoal idustis. Cots o h-2B ploys attst to t d o oiwos i pysically dadi sasoal jobs, ot i ot locatios, tat ay U.S. wos will ot ta.

I od to la o about ploys pcptios o t h-2B poa, IiatioWos USA ad t U.S.Cab o Coc coductd a suvy: v sot qustios distibutd ao h-2B ploys i July ad Au-ust 2010. T suvy asd ow ay h-2B wos t copay ad id i t last t yas ad wat typso jobs tos wos ld. It icludd two op-dd qustios about t bts o usi t poa ad asd

wat i ay pobls ploys ad xpicd. Aot op-dd qustio asd wat ploys would do ity w ot abl to i h-2B wos. Paticipatio was volutay, ad sults could b subittd via ail, axo t itt. A total o 367 ploys spodd.

T ajoity o h-2B ploys wo spodd to t suvy otd tat tpoay oi wos a liabl adad-woi. may also paisd ts wos poductivity: a bt tat osts t cost o bii t itot Uitd Stats. rspodts appciatd tat h-2B wos w willi to wo sasoal jobs ad t tuo w t saso dd.

T bt o h-2B to ou copay as b a lal, stabl ad otivatd wo oc.W would uc p to i oly Aica wos. It would b uc cap adasi o us to us Aica wos i ty w willi to do ou jobs. T pobl istat Aica wos a ot willi to do ts jobs. W av id dozs ad dozs

o Aica wos. Oly a adul av v v sow up o wo. O tos, wav v ad o last o ta two days. Witout a cosistt h-2B labo pool, wwould ot av b abl to ow ou busiss ad cat t ood Aica jobs tat wav catd.

Forestry contractor in a southeastern state


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T h-2B poa ducs copais taii ad tuov costs. may suvy spodts coplaid abouti tuov ao U.S. wos. maas potd tat w wos quit, ti copais av to tu awaybusiss util ty ca d w wos ad tai t. most h-2B wos stay o t duatio o ti visas,

povidi a stabl ad liabl wooc. I additio, suvy spodts said tat bii bac t sa h-2Bwos ac ya lps t to duc taii costs.

Still aot ipotat bt o t poa is tat it os copais a way to i oi wos w U.S.labo ats tit. T poa icass labo at fxibility by allowi busisss to bi i oiwos w U.S. wos ov up to btt, i-payi jobs dui cooic xpasios.

But t advatas o t h-2B poa xtd a byod t paticula copay tat uss t visas. not olydos t poa iv ploys a way to i oi wos w U.S. wos a ot availabl; it also lps

cat jobs, icasi oppotuitis o U.S. wos. As ay spodts to t IiatioWos-Cab su-vy xplaid, ii h-2B wos allows t to sustai ad xpad t volu o busiss ty do, ad tis itu abls t to i o U.S. wos, ot o i-silld supvisoy, clical ad sals positios. Tsjobs pay wll abov t iiu wa, ad ay a ya-oud.

mo ta o-tid o suvy spodts idicatd tat i ty w uabl to i h-2B wos, ty wouldav to cut bac opatios o clos ti busiss tily ad U.S. wos as a sult. may spodtsalso otd tat i ty w uabl to i h-2B wos, ty would av to sit so U.S. wos o sup-visoy jobs to positios quii avy aual labo ad tat tis could jopadiz t cooic viability o tibusisss. Still ots otd tat i ty w uabl to bi i h-2B wos, ty it tu to uautoizdiiat labo o oi studts ot U.S. wos.

T sults o t IiatioWos-Cab suvy a cosistt wit a study o maylads blu cab pocss-i idusty coductd by t Uivsity o maylads Sa gat extsio poa i 2008.1 Tat suvy usdmaylad stat data o t ultipli cts o local idustis ad oud tat vy h-2B wo ployd i a

T h-2B poa as poviddus wit lally-autoizd, liablwos. T sa wos avcotiud to tu aually adto a alady poplysilld ad taid. Ty passti p-ployt du sc,sow up vy day ad a willito wo xtdd ous adwds, w cssay.

Manager or a horticulturalservice frm headquartered in Ohio

I w a ot abl to t lal sasoal wos, w av oly 2 coics: #1 hi illal,udocutd wos, #2 go out o busiss.

Landscape and irrigation contractor in Kansas


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maylad saood pocssi plat suppotd 2.5 additioal jobs i t stat, so i t cabbi scto, ots isuppoti idustis ad lsw i t local cooy.

Accodi to ploys, t h-2B poa as cooic bts ot oly o paticipati s but also o tboad cooy. most siicatly, it appas to abl ploys to i o wos ot just oi wosbut also U.S. wos. Citics clai tat t opposit is tu tat t poa costs U.S. wos jobs ad divsdow was. T xt sctio valuats t its o ts clais.

AddRESSING CRITICS CLAIMS

Citics o t h-2B poa a a ub o allatios. So au tat t ai aso ploys us th-2B syst is bcaus it allows t to i wos wo a cap ta ativ-bo wos. Ots clai tatallowi ploys to bi i oi wos advsly acts t was ad ployt o U.S. wos. Stillots au tat ploys us h-2B wos o pat, ot tpoay, jobs. Ad ots ocus ti citiciso t sta acis tat bi i h-2B wos ad subcotact t out to ot copais, cai tatts acis abus t syst ad a i illal cuiti pactics. Tis pot ds littl vidc to suppotost o ts clais, ad ots ca b addssd tou lativly sall, pocdual os to t h-2B poa.

CLAIM: Employers hire H-2B workers because theyre cheaper

So citics all tat t ai aso ploys us t h-2B syst is bcaus it allows t to i woswo a cap ta ativ-bo wos. But t tut is h-2B wos a aly cap ta U.S. wos.extsiv ulatios stictly ocd by DOL isu tat ploys do ot pay h-2B visa olds lss ta ty

pay copaabl ativ-bo wos. T poas pvaili wa quit adats tat ploys ustpay oi wos o lss ta t ava wa paid to siila US wos doi t sa job i t sa o-apic aa. A laboat syst o wo potctios also as it dicult to us h-2B visa olds to udcutAicas. (See page 13, H-2B Worker Protections). Ts potctios a xtsiv ad costly o ploys. Adi ayti, t costs associatd wit t poa costs o cuitt, labo cticatio ad obtaii a visa a ii h-2B visa olds o xpsiv ta ii U.S. wos.

W w costatly uablto t ou wo copltdbcaus o ploys otsowi up o wo. Witt h-2B poa, w avb abl to av cosisttwos ad i tu avid o ull-ti salaidAicas o ya-oud

positios. Landscaper inPennsylvania


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H-2B Worker Protections

T h-2B poa potcts tpoay oi wos o abus by xtdi to t ay o t sa itsxtdd to U.S. wos ad cati additioal its spcic to h-2B wos.

Li U.S. wos, h-2B wos joy t ollowi its:

Ty ust b paid ti ad a al o ovti wo. (So positios a xptd, but vy w h-2Bwos old t.)

eploys ay ot disciiat aaist t o pay t ditially o t basis o sx, ac, atioaloii, liio o disability.

eploys ust coply wit all alt ad saty ulatios. Ty caot dduct t cost o saty quip-t o wos pay. I ost cass, ploys wo a ijud at wo ust civ dical tat-t ad pat o ay was lost wil ty a icapacitatd.

T it to joi a uio o a i collctiv baaii.

Additioal its spcic to h-2B wos iclud:

h-2B wos ust b paid t DOL-adatd pvaili wa i ti occupatio ad aa.

Ty ust b ployd ull-ti, typically at last 30 ous p w.

eploys ay ot qui wos to pay o ay cuitt costs o s latd to t copays labocticatio applicatio.

A ploy ust pay o t tu taspotatio to t couty o oii o ay h-2B wo wo is dis-issd bo t d o t autoizd wo piod.

Altou it is ot quid by h-2B poa ulatios, DOL cutly tas t positio tat ploysust pay all o t visa ad taspotatio costs icud by h-2B wos coi to t Uitd Stats. (TU.S. it Cicuit Cout o Appals uld tis all tat ploys a ot sposibl o tos costs, but itais to b s ow DOL will iplt t uli.)

h-2B wos av liitd its i so ot spcts. Uli ay ot tpoay visas, suc as t h-1B visao silld wos, h-2B visas do ot allow o dual itt. h-2B visa olds caot apply o a cad toai patly i t Uitd Stats. Altou a h-2B wo ay tas to ot h-2B-appovd ploy-s ad av t t o is o visa xtdd, t h-2B visa is ploy-spcic. I t oi wo dos ot

pot to wo o v coscutiv days witout t ploys cost, t ploy is quid to otiy DOL adUSCIS witi two wo days at discovi tat t wo as abscodd.

I I could d U.S. wos, I would. It would b lss costly to t copay to iliabl U.S. wos, but so U.S. wos do ot wat to do aual labo.

Human resource manager in New York state


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But i ploys do ot i h-2B wos to sav o costs, wy do ty i t? Accodi to ploys wospodd to t IiatioWos-Cab suvy, its bcaus ty caot d ou ativ-bo wos top ti busisss ui ad ti custo dad. Suvy spodts potd tat t sasoal atu

o t jobs o o cobid wit t pysical dads o t wo a t jobs uappali to U.S. wos.T potactd dowtu as ad a dic, asi t pobl o so ploys i so locatios. Butot copais pot tat ty still av diculty di qualid U.S. wos to ll pty slots. Suvy spo-dts wo opat sasoal busisss, suc as stauats ad otls i sot aas, s to d it paticulalydicult to sta ti opatios. may otd tat studts a ot availabl o t ti saso, tat t locallabo oc is too sall to t pa dad ad tat adult wos typically wat pat ployt, otsasoal jobs. Accodi to ts ploys, t h-2B poa os t a way to ll ti ployt ds oa tpoay basis w too w U.S. wos a availabl.

I ts ploys a tlli t tut tat ty i h-2B wos oly w ty caot d Aicas tti us o t poa sould diiis w o U.S. wos bco availabl. Ad i act, tis is xactly

wat appd dui t ct cssio. T ub o h-2B visas issud dclid saply w t cssioit, ad it cotiud to dop as t dowtu dad o (s Figures 1 and 2). Altou ploys pots wsquzd, ty did ot tu to t h-2B poa as a souc o lss xpsiv labo as you would av xpctdi t citics w it tat busisss us h-2B wos bcaus ty a lss costly ta Aicas. Ad t islittl vidc tat ay h-2B ploys tud istad to uautoizd wos accodi to t Pw hispaicCt, t ub o popl ti t U.S. illally ll saply dui t dowtu, as did t siz o t uau-toizd populatio i t Uitd Stats.

eploys actd to t cssio by usi w h-2B wos. Ad t poa spodd appopiatly, sl-cocti as t dad o h-2B visas doppd. As t cssio dad o, ay ploys wo ad copltdt h-2B applicatio pocss wos labo cticatio applicatios ad tpoay wo ptitios ad aladyb appovd by DOL ad USCIS optd ot to bi so o ts alady autoizd wos ito t couty.Ad by Auust 2009, USCIS oud itsl sitti o a suplus o so 25,000 visas so ay tat it opd t l-i piod o h-2B ptitios at avi ali aoucd tat it ad civd ou ptitios to t t cap.

Tis istoical vidc is psuasiv, but ot coclusiv. Ad i od to ut ivstiat wy ploys ih-2B wos, a oiial cooic aalysis coductd o tis study xaid t dad o h-2B wosacoss t 50 stats.

T y vaiabl was t busiss cycl, wic dis i its ipact o stat to stat, aisi ad lowi u-ployt at dii ats ad tis ad acti t ub o U.S. wos availabl to sasoal ploys.T oal o t aalysis was to dti wt h-2B dad vaid wit ts local ups ad dows. At all, i

h-2B wos atai positiostat U.S. wos

s as too ial.U.S. wos tuso to ou oadvacd ad ipayi jobs.

Quarry operatorin New York state


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ploys bi i oi wos w it is dicult to i U.S. wos, t ub o h-2B wos i a statsould icas w labo ats tit w uployt alls ad ployt owt acclats. But iploys a bii i h-2B wos o ot asos, t dad o visa olds sould ot vay siicatly

wit t busiss cycl.

T data o h-2B us ca o USCIS, wic tabulats t ub o oi wos adittd o h-2B visas o-i to ac o t 50 stats. T data o stat uployt ats ad stat ployt owt ca o DOLsBuau o Labo Statistics. T data covd all 50 stats plus t Distict o Colubia o Y 2006 tou Y2009. (S t Appendix o o dtail.)

T sults o t aalysis suppot t aut tat t h-2B poa povids a way o ploys to i o-i tpoay wos w ty caot d U.S. wos. o 2006 tou 2009, t ub o h-2B wo-s i a iv stat icasd w t stats uployt at ll ad its ployt owt acclatd. I tava stat, w t ployt owt at icasd by 1 pcta poit, ploys bout i 216 addi-tioal h-2B wos. Ad w t uployt at icasd by 1 pcta poit, ploys bout i 286w visa olds. Ts dis a cosistt wit sposs to t IiatioWos-Cab suvy. eploy-

s tu to t h-2B poa to allviat ti diculty di wos w U.S. labo ats a tit ot, ascitics clai, bcaus h-2B wos a itly cap to i ta Aicas.

CLAIM: H-2B workers undermine U.S. workers wages

T h-2B ulatios iclud a aay o povisios aid at potcti U.S. wos o coptitio o low-wa oi wos. T pupos o t cticatio pocss is to uaat tat o ploy bis i a h-2Bwo ulss t is a sota o U.S. wos willi to do t job. T DOL ust ctiy tat o qualid U.S.wos a availabl ad tat t oi wos ployt will ot advsly act siilaly ployd U.S.wos. eploys ust pay h-2B wos at last t pvaili wa (t ava wa i a iv occupatio itat oapic aa), ad ty ust activly cuit U.S. wos at tat wa bo li ti labo cticatio

applicatio. Wit liitd xcptios, t ploy ay ot lay o siilaly ployd U.S. wos i t 120 daysbo a h-2B visa old stats wo o i t 120 days at tat stat dat.

Still, dspit ts potctios, so citics bliv tat t h-2B poa as U.S. wos ployt ad ud-is ti ais. no xisti sac systatically xais t tut o tis clai. Ad wat sac xists isbasd laly o acdots, cas studis o fawd todolois. o xapl, t eployt Policy Istitut loodat sv occupatios wit la ubs o h-2B wos ad cocludd tat al was w staat i tos occu-patios btw 2000 ad 2007. But tis tlls us littl. At all, t sa was tu o low-silld wos acoss U.S.occupatios dui tis piod adlss o ow ay h-2B wos t scto ployd.

Bcaus w a a sasoalploy, t h-2B poalps us ll positios tatlocal cadidats do ot ddsiabl. A local cadidat willaccpt a sasoal job oly util/s ds a ull-ti ya-

oud positio.Manager o a private clubin Florida


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THE WORKER

Jua roo dl Alto, 33, st ad about t h-2B poa it yas ao o a id i mxico City, ad dcidd to iv it a ty.gtti to t Uitd Stats wast asy, spcially tat st ya. But tou is id ladd a job i nw O-las, w wod o a su at a ladscapi copay. Tat all, li t ot h-2B wos ployd byt ladscap, tud o to mxico. T xt spi, aai tou soo w, was od a slot atBost Ladscapi & Dsi, i Alldal, n.J. h still os o to mxico vy all, but as co bac to woo Bost vy su sic.

Alldal is a sidtial subub otwst o nw Yo City, ad Bost Ladscapi is a lativly sall opatio

wit 55 wos, ouly al o t h-2B visa olds.

T ost roo dl Alto could a i mxico, says, is $30 a day, ad tats woi su-up to sudow. I nwJsy, as $17.75 p ou.

Usi t oy s ad at Bost, as b abl to buy a ous at o i mxico ad povid o is wi adtwo cild. I abl to sav oy ad suppot y aily ad iv t wat ty d, said tou a it-pt. I vy appciativ.

ma C. Bost, t oud o t copay, as b usi t h-2B poa o o ta a dcad, ad says ca adly iai pi is busiss op witout t wos it povids.

Ty at ploys, said. Ty loyal. Ty spct t poa. Ty bco y popl to you oa-

izatio ty ditly it a poit w ty a assts. It would ally put a bud o y copay ot to avt.

Bot Bost ad roo dl Alto coplai about t papwo ivolvd i t h-2B pocss.

ev bo could co to t U.S., roo dl Alto bs, ad to d ad covic a U.S. ploy to sdi a ltt oi i a job. T w sval applicatios to ll out, outi ow but bwildi at st, ad ad to pov to ocs at t cosulat i mxico tat is tis to o w so sto tat would tu tw t su dd, ot ai i t Uitd Stats.

roo dl Alto souds axious ad ustatd just tali about t pocss.

Still, says, it was wot it.

h as b iv o ad o sposibility ac ya at Bost, says, ad ow tis to lp w wos lat ops.

his oly t: wiss could stay ya-oud. h wats to apply to bco a pat U.S. sidt, but th-2B poa dos ot allow tat.


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To ll tis sac vacuu, a scod oiial cooic aalysis coductd o tis study copad was i sctostat ly avily o h-2B visa olds wit was i ot idustis tat i w o o tpoay wos. Toal was to ivstiat ow t ub o h-2B wos i a iv job acts U.S. wos ployt ad a-

is.

T study lood at t citical vaiabls o ac o 503 dit occupatios: t aual owt o ouly a-is ao ativ-bo wos i ac occupatio, t aual owt i t ub o ativ-bo wos itat occupatio ad t ub o h-2B visa olds ployd i t occupatio. T occupatios a t auto ci xcutivs (a occupatio wit o h-2B wos) to coos ad ouds aitac wos (occupa-tios wit ay h-2B wos). T aalysis was do at bot t stat ad atioal lvls ad covd t piodo 2000 tou 2009.

T data o U.S.-bo wos ais ad ployt ca o t Cut Populatio Suvy, a suvy oso 50,000 ousolds coductd otly by t Csus Buau o bal o t Buau o Labo Statistics. Tdata o h-2B wos ca o appovd h-2B labo cticatio applicatios tabulatd by t oi LaboCticatio Data Ct. (mo dtail o t studys data, statistical todoloy ad sults ca b oud i t

Appendix.)

I it is tu tat t h-2B poa as U.S. wos labo at oppotuitis, t owt at o U.S. woswas ad ployt sould b sall i occupatios tat ploy ay h-2B wos ta i occupatios tatploy w o o.

T sults do ot idicat tat tis is t cas.

O t cotay. T aalysis sows tat t ub o appovd h-2B wos xpssd as a actio o totalployt i a iv ld i a iv scal ya is ot ativly latd to t owt o U.S. wos ploy-t o ais ov t xt calda ya. Idd, at t atioal lvl, t ub o h-2B wos adittdi a iv ya is colatd wit stronger wa ad ployt owt i occupatios tat ly avily o tpoa. Spcically, t sults idicat tat a 1 pcta poit icas i t pcta o h-2B wos i a

iv occupatio i a iv ya is associatd wit was i tat occupatio icasi 0.05 pcta poits astta ty otwis would av ov t xt calda ya, ad wit ployt also icasi 0.05 pctapoits ast. Ts a sall cts ot supisi sic t h-2B poa is sall. But t act is, t dictio ispositiv t h-2B poa is ot avi a advs ipact o U.S. wos.

At t stat lvl, t was o siicat latiosip btw t ub o h-2B wos i a iv occupatioad t wa o ployt owt i tat scto. I ot wods, tis aalysis oud o vidc tat adittio h-2B wos siicatly slows o boosts it ployt o ais owt ao ativ-bo wos it as o ct o way o aot.

Ot sac iocs ts sults, di littl coclusiv vidc tat iiatio o ay id, tpoay opat, advsly acts U.S. wos ployt o ais. A voluious cooics litatu uss so-pisticatd todolois to xai ow ifows o ois act U.S. wos labo-at outcos. Tsstudis av lood at ifows o iiats i al, at pat sidts, at us ad at h-1B wos just ot h-2B wos. Ad ost o tis sac cocluds tat iiatio as it o ct o a sall ct ocopti ativ-bo wos.

Ao t bst ow o ts studis is by giaaco Ottaviao, posso o cooics at t Uivsit Co-cial Luii Boccoi i mila, ad giovai Pi, posso o cooics at t Uivsity o Calioia at Davis.2Publisd by t natioal Buau o ecooic rsac i 2008, ti study xais t ct o iiatioto t Uitd Stats dui t piod o 1990 to 2006. Its picipal di: tat a icas i iiats aslittl ct v o t was o t ost siila U.S. wos, tos witout a i scool diploa o o ta


20/32


ius 0.1 pct to plus 0.6 pct a ya. o a wo ai $25,000 a ya t dia wa o a ull-ti,ya-oud al wo witout a i scool diploa tis taslats ito a a o ius $25 to plus $150p ya. T ct is so sall laly bcaus iiats ad ativ-bo wos a dit. Ty td to av

dit sills, wo i dit sctos, liv i dit pats o t couty ad by ad la, ty copltat ta copt wit ac ot.

Ot studis sust tat iiatio as so ativ ct o lss-silld U.S. wos ais ad ploy-t. But ts ativ cosqucs a o ta ost by t boad cooic bts o iiatio. Tsa 2008 study by Ottaviao ad Pi cocludd tat iiatio aisd ava was ao ativ-bowos, silld ad usilld, by 0.6 pct. T sacs xplaatio: w iiats ta low-silld,low-payi jobs, ty U.S. wos to do i-silld, i-payi wo ad idd i ay cass, tiiats psc lps cat ad suppot tos btt jobs. O o t bist bciais o iiatio asb coll-ducatd ots wo i iiats to povid cild ca tat abls t to t o stay i twooc. T populatio as a wol also bts o iiatio tou low pics o oods ad svicspovidd by oi wos.

Wat would app i ploys w ot abl to bi i tpoay oi wos? may busiss owswould b ocd to ov opatios outsid t couty o sut dow copltly. I a w idustis t w i-stacs w its possibl so jobs it b caizd. Still ot ploys it i uautoizd wos a distict possibility, accodi to sposs to t IiatioWos-Cab suvy. O ty it ais picso t oods ad svics ty poduc. no o tos altativs lp t ava Aica.

CLAIM: H-2B workers are not truly temporary

Still ot citics qustio wt h-2B visa olds a tuly tpoay. Altou ploys ust stablis tatti d o oi wos is idd sot-t it a o-ti occuc o a sasoal o pa-loado itittt d so ploys tu to t poa ya at ya. Citics ca tat tis idicats tploys a usi t poa to ll pat, ot tpoay, jobs.

Tis coc is witout it. rcut dad dos ot violat t uls o t h-2B poa. At all, a jobca b bot tpoay ad cui. may o t sasoal jobs tat ploys us t h-2B poa to ll ajust tat tpoay ad cui. Ad tis is pcisly wat as t udsiabl to ay U.S. wos. wwos wit ot altativs will ta a o-ti, sasoal, pa-load o itittt job. Ad w ty do, ac-codi to ay h-2B ploys, ty ot quit as soo as ty d a pat job tat os o stability.

Tis poa lls positiostat U.S. wos dot watto do w t cooyis sto. rcuiti is

vy dicult dui tiso cooic owt; vtoday, U.S. wos a still acall to tai.

Manager at a pavementmarking company in

North Carolina


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CLAIM: Unscrupulous businesses and stafng agencies abuse visa holders and undermine Americans

Still ot citics ao t ost vocal coplai tat uscupulous ploys ad sta acis abus t

h-2B poa.

may o ts citics coplaits ocus o wat ty all a illal cuitt pactics. h-2B ploys dpospctiv ploys i a vaity o ways. So cuit ti wos tslvs, tavli aboad to itviwpospcts o lyi o xisti wos to tap aily bs. Ots i oi cuits to itviw adslct applicats o t oud i mxico o Jaaica o so ot sdi couty. Still ots ly o U.S.-basdsta acis tat bi i la ubs o tpoay oi wos ad i t out o cotacts to sallploys. Labo cticatio applicatios idicat tat la sta acis a ot t doiat h-2B ploy-s. Ao applicatios appovd i Y 2009, t dia ub o h-2B wos qustd was 15, ad oly oapplicatio o o ta 500 wos was appovd. But t poas citics tai uc o ti o t sta-i acis ad o oi cuits.

So o t citics cocs a udstadabl. Wit illios o oi wos dspat to t t U.S., it

is asy to s ow cuits it ta advata o t. Acdots sust tat so oi cuits quiillal payts o aspii h-2B wos. Ad citics a coct tat it ca b dicult to addss tis sot oxploitatio bcaus t illicit activity would occu aboad.

A xtsiv wb o ulatios attpt to liit illal cuitt pactics. DOL ad DhS ulatios adoptd i2008 poibit ploys o quii h-2B wos to pay ay cuitt-latd s as a coditio o obtai-i ployt. Additioal DOL ulatios qui tat ploys cotacts wit oi cuits xplicitlyobid t cuits o si o civi payts o pospctiv ploys. eploys ust attst tath-2B wos av ot paid ay s to a cuit. I ty la tat a wo as do so, ty ust ibus two. I DOLs Wa ad hou Divisio ds tat a ploy, attoy o at ad owld o o ad asoto ow o suc payts, it ca assss s ad paltis ad ba tos idividuals o copais o t h-2Bpoa.

Dspit all o ts uls, cocs psist. But t a a ub o ways tat t pobl could b addssdut. Stat Dpatt ocs wo itviw h-2B applicats bo aditti t a alady obliatd toio t o ti its, but t ocs could b adatd to a o o a ot ad to a su tapplicats udstad t wais. T Stat Dpatt ad DOL could icas ovsit o oi cuits.Ad busisss tat violat t law sould ac appopiat sactios.

Also subjct to citicis a t sta acis tat bi i la ubs o oi tpoay wos adi t out o cotacts to ot ploys. Citics clai tat ts acis coit aud, abus oiwos, xaust t liitd quota o h-2B wos ad sw wa ats, bot o h-2B visa olds ad oU.S. wos.

nw ulatios issud by DOL i lat 2008 addss ay o t citics cocs about sta acis. T u-latios qui tat acis ad ti clits pov tat ti d o wos is tuly tpoay. T uls also basta acis o ovi h-2B visa-olds o o copay to aot as a way to p t i t U.S. oa ya-oud basis. Ad DOL outily audits h-2B ploys, bai tos wo patdly ba t law opaticipati i t poa. Ov ti, ts stictios a lily to duc t ub o h-2B wos subco-tactd out by acis to ot copais.

But auably t bst way to cotol abuss by sta acis would b to liiat t budso buaucacytat as t cssay i t st plac. Its o ysty wy sasoal ploys, paticulaly sall busissows, tu to sta acis: ty spa busiss ows o avi to ast t coplxitis o applyi olabo cticatios ad ptitioi o oi wos. Sval spodts to t IiatioWos-Cab


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suvy potd tat cotactos lp copais i h-2B wos w t aual cap as b t ad tatty a icasily tui to t as t uls t o coplx. Sipliyi t uls would duc ploysd o sta acis ad liit ay distoti ct o t labo at.

THE PROGRAMS HURdLES ANd INEFFICIENCIES

Altou ploys sposs to t IiatioWos-Cab suvy poitd to ay bts o t h-2B

poa, ti cots also sustd pobls icicis, ucssay udls, budso costs, xpsivdlays ad o. h-2B ploys a a itstd paty wit a vidt sta i ow visas a issud. Still, tipspctiv yilds ipotat isits tat ca b usd to lp ipov t poa.

Sval aspcts o t h-2B poa liit its attactivss to busisss tat could bt o paticipati. e-ploys spodi to t IiatioWos-Cab suvy dscibd t syst as coplicatd, ti-cosui,costly ad icit. may potd tat t cap o 66,000 visas p ya was too low to t ti labo ds.Ots coplaid tat uctaity as to wt ty would b abl to t h-2B wos obbld ti opatiosad styid busiss owt. Still ots poitd to dlays i DOL, DhS ad Stat Dpatt pocssi, ico-sistt dcisio-ai by ovt acis, lac o uidac ad qut cas to t poas ulatios.O spodt cotd tat t yiad quits ad stictios o t h-2B poa a it alostipossibl to b i ull copliac.

Ay isstps i t coplicatd applicatio pocss ca a dlayd appoval o visas did bot xtlycostly o ploys. ev a sot dlay ca lav a busiss witout wos dui a citical widow i its sctossasoal cycl ti about a aust pa still sot o wos w t su saso ics o o mo-ial Day. Ad i ost yas, a dlay i t applicatio pocss ca also a ailu to t a wo bo t visacap is acd.

T pocss as bco so labo-its tat it discouas paticipatio o t pato quality ploys. Tos o us wo a tical ploys, o bot ull-ti adtpoay wos, av ad to sot to utilizi tp acis. Tis is ot t bstpocss o us o o t wos ivolvd.

Resort manager in Missouri

T bist pobl ist iability to t tilyappoval o ptitios. Iadditio, t volu opapwo quid isidiculous, spcially wit is asd o ptitivly.

Restaurant manager inSouth Dakota


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T uctaity ivolvd i t h-2B pocss cats icicis ad wos. eploys wo do ot ow wtty will b abl to t visas av diculty ai plas. Ad ulatios at to pvt abus ca cat p-vs ictivs. o xapl, axity about ti t aual cap ay coua ploys to ptitio o h-2Bwos ty at su ty will d just i cas ti busiss tas o o so o ti wos quit at tquota is it.

T coplxity o t h-2B poa also lads to uitdd outcos. It discouas a utold ub o sallbusisss o usi t poa. It cats ictivs to i lawys ad ot cosultats. La copais tatqui la ubs o h-2B wos a i a positio to ba ts costs, but sall busisss a at a distictdisadvata wit cosqucs o t ad ultiatly o t cooy. may spodts to t Iia-

tioWos-Cab suvy coplaid tat outi costs t v-cai pvaili wa quit, tavlcosts, visa s, cuitt xpss, lawy ad cosultat s w coi clos to ai paticipatio i tpoa poibitivly xpsiv.

T cuitt pocss o U.S. wos is also icit. T pcis tii quits ad t lo la btwcuitt ad t stat o t wo piod a t sasoal jobs bi advtisd v lss attactiv to U.S. wo-s b ploys stat cuiti 120 days bo t wo is dd. eploys wo succssully cuitU.S. wos woy tat ty will ot sow up t o ou ots lat w t job bis. Sic ts jobs atpoay, ay U.S. wos a lily to cotiu saci o a pat job wil waiti o t tpoay jobto stat ad as a sult, ploys ay b stuc witout ay wos w ti pa saso stats.

MAKING THE PROGRAM MORE EFFICIENT

T h-2B poa claly ds ipovt ad ai it o cit would sv t coutys cooicitsts. a o ai U.S. wos ployt o ais, t poa appas to cat ad psv jobsi so sctos. It also lows pics o t labo-itsiv oods ad svics poducd by idustis tat i h-2Bwos to t bt o U.S. cosus.

T ub o pobl is ot owi i I will t t visas ac ya. I put a lot oti ad oy ito applyi o t visas ac ya ad you v ow i you a oito t t.

Landscaper in Maryland

T is siicat d tap,cousio, icosistcy i owt poa wos ad wat isdd to t appovd. I tlaw was siplid, w wouldt

av to i a attoy acya to sot tou t yalycas to t law.

Manager in thehospitality industry


24/32


25/32


rsposs to t IiatioWos-Cab suvy ad t oiial cooic aalysis coductd o tis potpoit to t sa coclusio: t two ost poblatic aspcts o t h-2B poa a t iid cap ad tbudso papwo. Bot a it dicult o t poa to ulll its statd objctiv abli ploys to

bi i tpoay oi wos w ty a uabl to d ou U.S. wos to t ti busiss ds.Ad bot pobls ca b addssd lativly asily.

ist, t cap. T ai pobl wit a xd quota is tat it sticts ploys o bii i wos wty d t ost. good cooic tis squz sasoal ploys o two dictios. W t cooyis booi, U.S. wos ca d ot jobs, ad w a itstd i tpoay o sasoal positios. Adawil, t dad o ay labo-itsiv oods ad svics icass. T two ocs cobi to pus upploys dad o h-2B wos. But a xd cap caot adjust, o att ow sto t cooy o owdspat t ploys d o wos. Tis ifxibility costais cooic owt.

A o cit appoac would b to li t h-2B visa cap to t busiss cycl. T istoy o t h-2A adh-2B poas udlis t poit: at ocs wo btt ta abitay cilis to liit wo fows, adt is littl is tat ploys will bi i o tpoay wos ta ty d. T h-2A poa, wic

abls ploys to i tpoay aicultual wos, as o cap. Yt at o ti i t past dcad as tub o visas issud ud t poa xcdd 65,000 p ya ad so yas, it was as low as 30,000.Siilaly, i Y 2005 ad 2006, w o-a ploys w allowd to bi i tui h-2B wos wit-out couti t aaist t 66,000-visa cap, t ub o wos adittd aid lss ta o-tt o opct o total U.S. ployt.

I t ust b a cap, it sould b basd o at ocs. T ub o visas availabl sould is w tcooy ows ad dad o h-2B wos icass ad it sould si dui ad tis w wsasoal wos a dd. So cotatos popos asui labo dad otaily ot by adatiwa ats, wic would distot t at, but by placi budso cticatio quits wit a visa auc-tio o a paid by ploys o ac oi wo ty i.3 Altativly, t cap could b dsid to ovup ad dow i syc wit so ot, poxy asu o cooic activity: t atioal uployt at, gDPowt, owt i sctos tat typically i la ubs o h-2B wos o paps so cobiatio o t

t. Oc t oula o t cap was dtid, t sould b o d o Coss, a idpdt co-issio o ay ovt acy to itv t cap would ov up ad dow autoatically wit t busisscycl.

Scod, t papwo. T ca b littl qustio about t d to a t h-2B poa o cit bystalii its papwo quits. T applicatio pocss sould b siplid o ploys wo avpaticipatd i t poa bo. I cass w t a o cocs about a copays pvious copliacwit t poa, t quits sould b asd bot t labo cticatio ad t tpoay wo ptitiopocss could b xpditd. eploys wo av b auditd ad oud to b i copliac sould also b titldto a xpditd pocss. Ad all ploys si visas sould b abl to l ti applicatios lctoically.Aot way to icas t h-2B poas cicy would b to stali t cuitt pocss o U.S.wos. T pcis tii quits a it dicult o ploys to i U.S. wos. T pocss is x-psiv o ploys. Its atiquatd, lyi o wspap ads ad stat ployt acis. Ad it allyyilds w, i ay, U.S. wos. Sipliyi t papwo quits ss ulily to a U.S. wos, ad itwould bt sall busisss, duci t d to i lawys ad sta ats to aviat t syst.

ially, w cotplati cas, policyas sould stp bac ad viw t h-2B poa i t boadcotxt o U.S. iiatio policy. Cut policy svly sticts t ub o low-silld wos wo ca -t t U.S. lally wt o tpoay, pat o aily visas. Tpoay poas a sall ad buddby xcssiv papwo. Pat visas o low-silld wos a vitually o-xistt. Oly 5000 a availabl


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ac ya, ad ay accopayi aily bs cout aaist tat cap. I pactic, t oly avu op to low-silld ois wo wat to sttl i t U.S. patly a aily-basd visas. But ost aily-basd adis-sio catois av lo quus ot as lo as v to 10 o v 20 yas ad ot all pottial iiats

av lativs wo ca sposo t.

no wod udds o tousads o oi wos is ti livs vy ya tyi to t t U.S. cladsti-ly. T ub o visas availabl to low-silld wos siply bas o latio to t fow atd by atocs ad quid to t U.S. labo dad. Ipovi t h-2B visa syst ca lp allviat tis bottlc but oly by so uc. evtually it ust b accopaid by ot, boad os to t U.S. iiatio syst.


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CONCLUSION

T h-2B poa plays a sall ol i t U.S. cooy h-2B visa olds accout o lss ta o-tt o o

pct o total ployt. But t poa is cucial to a wid aay o sasoal ad ot ploys wo wouldav diculty ti ti labo ds i ty w uabl to i tpoay oi wos.

eploys ust cla xtsiv udls to bi i h-2B wos. Ty ust l a labo cticatio applicatiowit t Dpatt o Labo, t l a ptitio o a tpoay wo wit U.S. Citizsip ad IiatioSvics. Oly w bot applicatios av b appovd ca t ploy bi to sac o suitabl oiwos, wo ust b appovd by t Stat Dpatt bo ti t Uitd Stats. T pocss is coplx,ti-cosui, costly ad icit.

Dspit ts pobls, i ost yas t dad o h-2B wos a xcds t aual cap o 66,000 wos.Basd o a suvy o h-2B ploys coductd by IiatioWos USA ad t U.S. Cab o Coc,ploys i h-2B wos o tpoay jobs bcaus ty caot d ou U.S. wos to t ti labods. eploys viw h-2B wos as liabl ad ad-woi.

A oiial cooic aalysis coductd o tis pot ds o vidc tat t h-2B poa as ativ-bowos ployt o ais. O t cotay, i t poa did ot xist, so sasoal ploys ost owo i U.S. wos alo wit oi wos would o out o busiss. T is also o vidc tat h-2Bwos a a lss xpsiv substitut o U.S. wos. Cocs about abusiv subcotacti ad illal cuit-t pactics ca b addssd tou cas to t poa.

noti ids cooic owt o ta ploy uctaity icludi uctaity about wt o ott will b ou wos availabl to t busiss ds. T oal o t h-2B poa sould b to liit tisuctaity all t o ipotat i todays wa cooic cliat. T h-2B poa ca bst aciv tisoal by abli ploys to i oi wos w U.S. wos a uavailabl, ot by iposi ualisti-cally low visa caps o poibitiv papwo.

Tis pot poposs sval ipovts to t h-2B poa, all dsid to a it o cit. T capsould b o fxibl ad lid to at ocs. T papwo quits sould b siplid. Botcas would ac t poas cotibutio to t U.S. cooy.

ially, policyas sould viw t h-2B poa i t wid cotxt o U.S. iiatio policy. Cut policysvly sticts t ub o low-silld wos wo ca t t U.S. lally, ad t ub o visas avail-abl, pat ad tpoay, bas o latio to t fow atd by at ocs ad quid to t U.S.labo ds. Ipovi t h-2B visa syst ca lp allviat tis bottlc but oly by so uc. evtually itust b accopaid by ot, boad os to t U.S. iiatio syst.


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APPENdIX ON dATA ANd METHOdS

data. T h-2B labo cticatio applicatio data a o ttp://www.fcdatact.co/Cash2B.aspx. Ts

data a a public-us vsio o eTA o 9142. T data w xpadd o t ub o applicatios to tub o positios. I Y 2007 tou Y 2009, patial cticatios w possibl, ad t ub o positiosctid was catd accodily.

T USCIS data o h-2B wos adittd (basd o I-94 os) a o t Yaboo o Iiatio Statistics,ttp://www.ds.ov/ls/statistics/publicatios/yaboo.st.

T actio o h-2B visa applicatios tat w did is basd o Stat Dpatt data o ttp://www.tavl.stat.ov/pd/Y2009nIVWoloadbyVisaCatoy.pd.

Data o h-2A visa issuacs a o t Stat Dpatt, ttp://tavl.stat.ov/visa/statistics/ivstats/ivstats_4582.tl.

Data o stat-lvl sasoally-adjustd uployt ats ad ployt lvls a o t Buau o LaboStatistics, www.bls.ov. T ployt data a oa ployt o t Cut eployt Statisticssuvy. T otly data w covtd to sipl avas by scal ya.

Data o ativs ployt ad ais a basd o t Cut Populatio Suvy md Outoi rotatioSuvy (CPS mOrg) data o t natioal Buau o ecooic rsac, ttp://www.b.o/o/aual/.eais w coctd o ifatio usi t aual psoal cosuptio xpditus pic dfato o tBuau o ecooic Aalysis, www.ba.ov. T CPS data w d wit t ub o ctid h-2B labocticatio applicatios by occupatio by covti t Dictioay o Occupatioal Titls occupatio cods itot CPS occupatio cods usi cosswals availabl at www2.d.ov/scstat/val/ab/suppot/doc-soc.xls adttp://www.bls.ov/cps/cocc.pd. T cosswal ad sultd i data o 503 occupatios.

Methos. T latiosips btw t ub o appovd h-2B positios as a actio o total ployt ad

ativs ployt ad ais a basd o aalysis o t h-2B labo cticatio applicatio data ad t CPSmOrg data. T aalysis was do at t atioal ad t stat lvl. o t CPS mOrg data, ploytad al ouly ais owt ats w calculatd at t dtaild occupatio lvl o ac calda ya dui2000-2008. Tos data t w copad wit t ub o h-2B wos i t bas ya i tat occupatiodividd by total ployt i t bas ya i tat occupatio (.., t owt at o ployt ad aiso 2008 to 2009 was copad wit t ub o h-2Bs i Y 2008 dividd by total ployt i 2008).Tis copaiso was do by ssi ployt ad ais owt ats o t ub o ctid h-2B ap-plicatios as a actio o total ployt i tat occupatio, occupatio, ya ad (i stat-lvl) stat xd ctsi odiay last squas (OLS) ssios. Stadad os a obust ad clustd o t occupatio to cotolo toscdasticity. T ssio sults a as ollows, wit stadad os i patss:

eployt owt at eais owt at

h-2B wos, atioal .047 .053(.004) (.005)

h-2B wos, stat .047 .006(.032) (.008)

not: eac cocit is o a spaat ssio.

T sults sow tat avi o h-2B wos i a iv occupatio dos ot siicatly act ployt oais owt ao ativs i tat occupatio. I avi o h-2B wos advsly actd ativs laboat outcos, t stiatd cocits would b ativ ad statistically siicatly dit o zo,


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wic is ot t cas . T sults a obust to oly icludi occupatios tat v ad a h-2B wo cti-d dui 2000-2009, wic xcluds ay lativly i-silld occupatios. Ty also a obust to xaiit lvl o h-2B wos i a occupatio istad o t sa. T stat-lvl sults also a obust to icludi

itactios btw t stat ad ya xd cts to cotol o stat-spcic cooic socs.

Ts sults a subjct to at last two cavats. ist, t ub o h-2B wos ay b doous i tssios, wit socs to ployt ad ais owt ats acti t ub o h-2B wos lativ tototal ployt. T is o obvious cadidat istut to cotol o tis pottial doity, but icludioccupatio ad ya xd cts sould lp cotol o ay doity. Scod, t h-2B data a appovd labocticatio applicatios, ot all o wic sult i actual h-2B wos. Also, t is ot a pct o-to-ocospodc btw positios ad wos; stictly spai, t LCA data a positios, ot wos, ad ah-2B wo ay old o ta o positio i a iv ya.

T latiosips btw dad o h-2B wos ad t stat uployt at ad ployt owt ata basd o OLS ssios o t ub o h-2B wos adittd o USCIS data o Y 2006-2009 (tpiod availabl) o t uployt at o t ployt owt at ad stat xd cts. Stadad os

a obust ad clustd o t stat to cotol o toscdasticity. T ssio sults a as ollows, witstadad os i patss:

h-2B adissiosUployt at -286.207

(71.124)

eployt owt at 215.719(62.399)

not: eac cocit is o a spaat ssio.

T sults sow tat h-2B adissios a ativly latd to t uployt at ad positivly latd to tployt owt at i a stat. T stiats a statistically siicatly dit o zo at covtioal

lvls. As t uployt at icass by 1 pcta poit, t ub o h-2B wos adittd alls by286. As t ployt owt at icass by 1 pcta poit, t ub o h-2B wos adittd issby 216. As a cavat, t USCIS data a basd o I-94 data o adissios ad do ot cssaily iclud all h-2Bwos (paticulaly wals ad tui wos).

EndnotEs

1. Douglas W. Lipton. An Economic Analysis of Guest Workers in Marylands Blue Crab Industry. University of Mary-

lands 2008 Maryland Sea Grant Extension Brief. University of Maryland.

2. Gianmarco I.P. Ottaviano and Giovanni Peri. Immigration and National Wages: Clarifying the Theory and the Empirics.NBER Working Papers 14188 (2008). National Bureau of Economic Research, Inc.

3. Madeline Zavodny & Pia M. Orrenius.Beside the Golden Door: U.S. Immigration Reform in a New Era of Globalization.

Washington, DC: The AEI Press, 2010. See also Toward a Market-Based Worker-Visa Program. ImmigrationWorks USA.

2010. .


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ABOUT THE AUTHORS

mADeLIne ZAVODnY

madli Zavody is a posso o cooics ad cai o t cooics dpatt at As Scott Coll iDcatu, goia. S is also a sac llow o t Istitut o t Study o Labo i Bo, gay.S as b a associat posso o cooics at Occidtal Coll i Los Als, Calioia, ad asac cooist at t dal rsv Bas o Atlata ad Dallas. S is a co-auto o Bsid t goldDoo: U.S. Iiatio ro i a nw ea o globalizatio, (AeI Pss, 2010). h sac o iiatioalso as b publisd i t Joual o Labo ecooics, Joual o Dvlopt ecooics, Joual oPolicy Aalysis ad maat, Idustial ad Labo rlatios rviw, ad Doapy, ao ots. Scivd a udaduat d i cooics o Claot mcka Coll ad a PD i cooicso t massacustts Istitut o Tcoloy.

WITh TAmAr JACOBY

Taa Jacoby is psidt ad CeO o IiatioWos USA, a atioal datio o sall busiss owswoi to advac btt iiatio law. S is also a atioally ow joualist ad auto. h aticlsav appad i The New York Times, The Wall Street Journal, The Washington Post, The Weekly Standardad Foreign Aairs, ao ot publicatios, ad s is a ula ust o atioal tlvisio ad adio. Sis auto oSomeone Elses House: Americas Unfnished Struggle or Integration and editor o Reinventing theMelting Pot: The New Immigrants and What It Means To Be American, a collctio o ssays about iiatitatio. o 1989 to 2007, s was a sio llow at t maatta Istitut. Bo tat, s was asio wit ad justic dito o Newsweek. o 1981 to 1987, s was t dputy dito oThe New YorkTimes op-d pa.

ABOUT THE EdITOR

mIChAeL DenDAS

mical Ddas svs as maa o Iiatio Policy at t U.S. Cab o Coc. I tis capacity, is sposibl o t aat o bod scuity, ployt vicatio, ployt-basd visas, adtavl ad touis issus. Pio to tis ol, m. Ddas svd as Coodiato o Labo ad Iiatio it Cabs Labo, Iiatio & eploy Bts Divisio. Ddas aduatd o Tiity Coll i

hatod, CT ad cutly sids i Wasito D.C.


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the economic impact of h-2b workers

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