To Raise Wages, Make Employers Compete for U.S. Workers

One of the more confounding aspects of the U.S. labor market is why, even with unemployment hovering at around 4 percent a year, wages and salaries remain flat. Economists offer a range of explanations for wage stagnation, from the decline of organized labor to the automation of jobs once held by unskilled workers. But another potential factor often goes overlooked: employers' use of temporary foreign workers to fill low-wage jobs. Even among politicians who support tougher immigration laws, this practice is largely tolerated. It's time they reconsider.

U.S. employers bring in guest workers for unskilled work through three visa programs: the H2-A visa for agricultural workers, the H-2B visa for non-agricultural workers, and the J-1 visa for exchange visitors. H-2A visas are for crop workers. H-2B visas are concentrated in landscaping, forestry, amusement and recreation, housekeeping, and construction. J-1 visa holders are typically young people from other countries who come to the U.S. as au pairs, camp counselors, and interns. Daniel Costa of the left-leaning Economic Policy Institute estimates that 450,000 temporary laborers enter the U.S. annually through these three visa programs.