How do restrictions on high-skilled immigration affect offshoring?
What are the repercussions of limitations on high-skilled immigration?
How do restrictions on high-skilled immigration affect offshoring?
What options do multinational corporations have when facing visa restrictions?
If corporations choose offshoring, what may be the result of restrictive immigration restrictions?
Which countries have experienced increases in foreign affiliate recruitment due to constraints on H-1B immigration?
Repercussions of Limitations on High-Skilled Immigration
Limitations on skilled immigration may have unintended repercussions that have largely gone unnoticed in the immigration debate. When high-skilled immigration is restricted, it can lead to effects on offshoring practices and job outsourcing.
Options for Multinational Corporations
When facing visa restrictions, multinational corporations have the option of offshoring, which involves hiring the workers they require at their foreign affiliates.
Result of Restrictive Immigration Restrictions
If corporations choose the strategy of offshoring due to restrictive immigration restrictions, it may result in job outsourcing rather than the expected increase in native employment.
Countries Experiencing Increases in Foreign Affiliate Recruitment
In particular in Canada, India, and China, constraints on H-1B immigration have contributed to increases in foreign affiliate recruitment at both the intensive and broad margins.
Limitations on high-skilled immigration can have a significant impact on the offshoring practices of multinational corporations. When visa restrictions are implemented, corporations may opt for offshoring, which involves hiring needed workers at their foreign affiliates.
This can lead to job outsourcing as a consequence of restrictive immigration policies, rather than the intended outcome of boosting native employment. The countries such as Canada, India, and China have experienced an increase in foreign affiliate recruitment due to constraints on H-1B immigration.
By combining visa data with extensive information on US multinational firm activities, it has been observed that limitations on high-skilled immigration can result in unexpected outcomes in the global job market. The debate on whether high-skilled immigration should be promoted or restricted continues, as the effects on offshoring and job outsourcing are further examined.