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Requiring them to pay to change jobs would be a form of not letting them change jobs. So this doesn't speak to what happens if you let them change jobs.

However, doing so risks making the US software industry less competitive and ultimately force companies to outsource jobs abroad.


No, it makes the software industry less competititve assuming that they are telling the truth. They're not telling the truth; they pay lip service to "we really need the H1-B because there's no native who can do the job equally well" when they're just lying about that because they don't have to pay the immigrant as much as a native due to the immigrant's inability to switch jobs.

There's probably a core of companies who really are more competitive with H1-Bs, so some immigration would remain, but it would be drastically reduced and the ones who still are let in would be paid market salaries.







"we really need the H1-B because there's no native who can do the job equally well"


Well from an economic perspective that statement is not even wrong (lot's of laws have this problem). Consider the following toy model:

Let's say there are two companies each of which needs a programmer with skill X, and there is only one native programer with skill X. So one of the companies asks for a H1-B candidate. Is that statement true? Well, technically it could out bid the other company for the native programer.
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VoiceOfRa
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Obviously companies are interested in lowering wages regardless of how competitive they are. But having an incentive to lie is not equivalent to lying. What makes you think the companies would not outsource jobs to countries with lower wages if you close the H1B program?
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melian
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