💼H-2B Visa Cap Limits US Business Growth
Restricting foreign workers hurts US businesses, not American jobs
TL;DR
The H-2B visa cap of 66,000 per year limits US business growth, with losing firms seeing revenue drop and investment stall. Firms that win the lottery see a 20% revenue boost and a 1.5 to 2.1 elasticity in investment.
The H-2B visa cap of 66,000 per year is falling short of demand, with employers requesting 136,555 workers for the second half of 2022. This cap limits US business growth, with losing firms seeing revenue drop and investment stall. Firms that win the lottery see a 20% revenue boost and a 1.5 to 2.1 elasticity in investment. The study suggests that low-skill foreign and American workers are poor substitutes for one another, meaning a marginal increase in H-2B visas would expand production, investment, and profits without reducing American employment.
Key Points
The H-2B visa cap of 66,000 per year is far below demand, with employers requesting 136,555 workers for 2022.
Firms that win the lottery see a 20% revenue boost and a 1.5 to 2.1 elasticity in investment.
Losing firms see employment of H-2B workers cut roughly in half, with no increase in American employment.
The study suggests low-skill foreign and American workers are poor substitutes for one another.
A marginal increase in H-2B visas would expand production, investment, and profits without reducing American employment.
Why It Matters
The H-2B visa cap of 66,000 per year limits US business growth, with losing firms seeing revenue drop and investment stall. Firms that win the lottery see a 20% revenue boost and a 1.5 to 2.1 elasticity in investment. This cap needs revisiting to support business growth without reducing American employment.
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