Immigrant Workers’ Earnings and H-1B Visa Impact

Immigrant Earnings Surpass American Counterparts

Recent analysis of H-1B visas reveals that immigrant workers often earn more than their American counterparts. This challenges the view that the visa program undermines U.S. wages. The findings from global HR firm Deel suggest that companies seek specialized talent through this program, not cost savings. Fields like software engineering and artificial intelligence see a high demand where U.S. specialists are scarce.

The data from Deel’s platform contributes to the divided research on this topic. Some studies indicate that, when accounting for job type and location, H-1B workers might earn less than their U.S. peers. These findings are often cited by those advocating for visa reform.

Comparing H-1B Holder Wages vs. U.S. Worker Wages

Released on June 2, Deel’s analysis highlights a consistent trend: H-1B visa holders generally earn more than local workers in similar roles. In the U.S., the median salary for H-1B workers on Deel’s platform is $140,000, compared to $130,000 for American workers in similar positions. Immigrant workers tend to be younger, starting high-paying jobs early in their careers.

At the top end of the labor market, the differences are greater. At leading venture-backed startups in the U.S., foreign workers earn a median salary of $260,000, which is $100,000 more than their American counterparts. This gap is mainly due to the concentration of these workers in AI and technical roles.

However, some research shows H-1B workers earn less after adjustments for various factors. This demonstrates the complexity in comparing wages based on different methodologies.

Immigration Challenges and Global Comparisons

“It’s not easy to bring in an immigrant worker,” said Lauren Thomas, an economist at Deel. She emphasized how selective immigration systems lead to specific results like those observed.

The analysis also considers high-skilled global mobility. It shows that firms hire foreign workers for their expertise, often at a premium. In the U.K., for example, Skilled Worker visa holders earn £96,000 on average, versus £87,000 for British citizens. The United Arab Emirates shows similar trends.

Immigrants often fill roles in engineering and tech, while local citizens work in areas requiring native insights like sales and creative positions. Kevin Lynn from the Institute for Sound Public Policy critiques Deel’s analysis, arguing that existing data indicates lower certification levels for many H-1B roles, sparking concerns about wage suppression and job displacement.

Ruling on H-1B Visa Fee

The wage debate coincides with a court ruling against a $100,000 fee on H-1B applications, introduced by the Trump administration. U.S. District Judge Leo Sorokin found the fee unlawful, asserting it was a tax imposed without congressional approval.

The policy aimed to protect American jobs but critics argued it might deter high-skilled workers, harming industries dependent on international talent. This ruling likely impacts employers by easing recruitment costs and enhancing competitiveness.

Eligibility and Duration of H-1B Visas

The H-1B visa targets foreign professionals in “specialty occupations” that typically require at least a bachelor’s degree or equivalent experience. Common roles include software developers, engineers, and healthcare professionals. Employers must sponsor these applicants, proving the need for specialized skills not easily found domestically.

The program is highly competitive with 85,000 new visas available annually, though total approvals include renewals. H-1B visas initially last for up to three years, with possible extensions generally extending the stay to six years. For those applying for permanent residency, additional extensions can be granted, allowing them to stay beyond six years during processing.