Abstract
In 2020 IBM tapped Arvind Krishna to be their next CEO. While his success should be celebrated, I argue that Indian American success, as a whole, can be attributed to: (a) the immigration policy of the United States since 1965 and (b) the migratory patterns of Indian nationals when they immigrate. Specifically, the Immigration and Naturalization Act of 1965 and the Immigration Act of 1990, as well as the distinct migratory patterns among Indian nationals, especially within the last 5 years, resulted in unprecedented economic success among Indian Americans not seen in most other major Asian American communities
While Arvind Krishna’s success as the recently named CEO of IBM should be celebrated, 2019 data from the Pew Research Center shows that he’s not alone. Indian Americans have one of the highest median annual household incomes at $119,000, surpassing the median annual household income for all Asians combined— a trend that has been documented, and increasing, since 2010.
Furthermore, while the median annual household incomes are over $100,000 for both groups, interestingly, the 2019 median household income for foreign-born Indian Americans are $15,600 higher than U.S. born Indian Americans—a trend distinct to Indian Americans.
Other than Filipino American and Indian American communities, households headed by U.S.-born members of most other major Asian American communities almost always outearn households headed by foreign-born Asian Americans during the same year.
First, I argue that Indian American success, as a whole, could be attributed to the immigration policies of the United States since 1965. Second, I argue that the district trend in median household income between foreign-born and the more recent U.S.-born Indian Americans could be attributed to the personal demographics of Indian Americans and to distinct immigration patterns among those born abroad.
Political scientist Sangay Mishra notes that the origins of Indian American migration to the United States coincided with the 1960’s civil rights movement. The impetus for creating an inclusive immigration policy, which cumulated in the Immigration and Naturalization Act of 1965, was centered around the desire to abolish immigration quotas that were deeply rooted in racism, such as the 1882 Chinese Exclusion Act, which barred Chinese immigrants from entry into the United States.
The United States’ aspiration to compete with the Soviet Union during the Cold War in science and technology also added to the commitment of creating an immigration policy that would ensure that the United States could prevail in the Cold War. As a result of this aspiration, Mishra notes that the 1965 immigration legislation targeted highly educated foreign labor.
Consequently, many skilled Indian nationals immigrated to the United States to fill the occupational needs in science and technology. Similarly, the narrow-focused Immigration Act of 1990, which provided H-1B visas for educated immigrants, produced similar results. Indian nationals with qualifications in information technology immigrated to the United States to fill jobs created by technology’s increasing importance.
Thus, unprecedented economic success among Indian Americans could be partly attributed to the United States’ immigration policies favorable to immigrants who were already highly educated before coming to the United States. Indeed, these two immigration policies have had a lasting effect on foreign-born Indian Americans and their children.
As of 2019, 43% of foreign-born Indian Americans and 41 % of U.S.-born Indian Americans have a post-graduate degree, compared to 13% of all Americans. Since possessing higher levels of education often positively correlates with an increase in lifetime earnings, it is not surprising that Indian Americans, on the whole, are experiencing unparalleled economic success.
Immigration policy alone, however, cannot explain why, despite median annual household incomes being over $100,000 for both groups, the 2019 median household income for foreign-born Indian Americans was $15,600 higher than the U.S.-born population. Distinct migratory patterns could explain this peculiarity.
First, in 2019, 94% of foreign-born Indian Americans, compared with 38% of their U.S.-born counterparts, were 18 years of age or above. Second, while there was a dip in immigration in 2010 during the recession, compared to other Asian communities, immigration to the United States from India has remained steady for the past 20 years, with over half in the United States for more than ten years. In addition, there has been an increase in Indian immigration within the last five to nine years.
Two inferences could be made based on this data. First, the reason that foreign-born Indian Americans have a higher household income is that more of them are working and have been working for longer in high paying jobs compared to the U.S.-born population. Second, the few U.S. born Indian Americans who are working, some of whom are just beginning their careers, are experiencing unrivaled economic success, which, again, could be partly attributed to their high educational attainment.
In closing, there is no doubt that Indian Americans are experiencing unparalleled success. One thing I know is that this success is the result of selective immigration policies that favor Indian Americans who already hold advanced academic degrees and the peculiar patterns in immigration.