Mike Elgan has an interesting proposal to solve the ongoing debate against and in favor of the H1-B program. The solution is something I haven’t seen anybody propose anywhere else, so it worthing looking at, if just for its novelty value.

Let’s transform the H-1B visa into a special “H-1B green card.” We can retain the 65k cap on the total number of skilled foreign workers, but they’ll be given all the rights and privileges of any other green card holder, except the “H-1B green card” expires after six years.

So if you think what is so novel about this, the main part of the proposal is

Most importantly, they should be allowed to apply for U.S. citizenship any time during their stay, and become fully naturalized U.S. citizens on the first day of their fifth year if they choose. However, if they fail to become citizens within the six-year period, they have to leave (as they would have with the H-1B visa).

If you are wondering what makes this a good plan, we should look at the deficiencies of the existing system. The most widespread argument against the H1-B visa program is that it lowers the wages for skilled workers by bringing in foreigners who are willing to work for lower salaries.

The recipient of an H-1B visa must be championed by a company, and cannot easily change jobs once here, which translates into a kind of low-paid “indentured servitude.” The visa lasts six years. Spouses can come with, but can’t work while here. To reapply, the visa holder must leave for a year before coming back.

The restrictions of the H1-B visa makes it difficult for the visa holder to negotiate wages to his favor.

This proposal benefits everyone (except foreign economies). It favors skilled immigrants who want to become Americans and keep their skills here, rather than bring them back (along with American trade secrets) to their countries of origin. They’ll have to be paid more (and therefore won’t depress American wages), because they’ll be able to change jobs, will be more likely to buy homes and have kids — all of which encourage the demand for higher wages. And they won’t be “stealing American jobs” because, soon enough, they themselves will be Americans.

Meanwhile, American companies like Microsoft, IBM and Oracle benefit, because the total number of skilled workers they can hire and import from abroad rises, as “H-1B green card” holders transition to citizens and free up more H-1B spots. American companies will be more competitive, and will be more likely to stay in business, hire more workers and grow.

We maintain our cap on temporary skilled workers, and America becomes slightly smarter and more skilled by the addition of a well-educated citizen of demonstrated value to the economy.

Read the complete article here.