The Impact of the H-2B Visa Program on the Employment and Wages of U.S. Workers

Summary Stephen Bronars from Edgeworth Economics latest study on the H-2B visa program reveals significant insights into its impact on local labor markets. The program, designed to fill seasonal labor shortages, does not adversely affect wages or employment opportunities for domestic workers with a high school degree or less. Instead, areas with increased H-2B workers experienced greater employment growth and higher wages, particularly benefiting those with higher education due to complementariness in skills. Survey evidence indicates that businesses rely on H-2B workers after exhaustive efforts to hire locally, highlighting the program's essential role in maintaining operations during peak seasons. However, challenges exist, such as bureaucratic delays and prevailing wages set above market rates, which can hinder economic growth and business efficiency.

The study's findings advocate for policy considerations to adjust the H-2B visa cap and streamline processes to optimize economic benefits, suggesting that businesses relying on it could enhance local employment for more educated workers while mitigating costs passed to consumers. The research underscores the importance of understanding localized labor dynamics and the broader effects of immigration policies on the hospitality and related sectors.