Pune: Restrictions by the United States on skilled immigration are likely to result in more offshoring, particularly to countries such as Canada, India and China, according to a research paper.
The National Bureau of Economic Research paper looked at data on visas issued by the US government and its effect on activities of multinational companies.
How Do Restrictions on High-Skilled Immigration Affect Offshoring? Evidence from the H-1B visa program – by Wharton School’s Britta Glennon found that, rather than increase employment of natives, restrictive migration policies led to offshoring of jobs.
Several IT firms and industry associations such as Nasscom have criticised US President Donald Trump’s move to temporarily suspend non-immigrant visas like the H-1B and L-1 till year end in order to protect American jobs.
The United States is facing record unemployment levels on account of the Covid-19 pandemic and has taken a series of steps to restrict immigration.
Glennon focused on firm level H-1B immigration data along with multinational firm activity to examine whether visa restrictions result in an increase in high-skilled foreign affiliate employment and an increase in the likelihood of opening foreign affiliates in new countries.
Source: The Economic Times
