Analysis of H-1B Visa Impact on Immigrant and U.S. Worker Earnings

Immigrant Earnings vs. U.S. Workers

Recent data suggests that immigrant workers with H-1B visas often earn more than their U.S. counterparts. Global HR firm Deel analyzed these trends, indicating that companies use the visa program to secure specialized talent. Fields like software engineering and artificial intelligence are in high demand, and domestic supply is limited.

Deel’s findings contribute to ongoing debates about the visa program’s impact on wages. Some analyses suggest H-1B workers earn less when adjusted for job type and location. However, Deel’s June 2 analysis indicates a consistent trend of higher earnings for visa holders across major markets.

Comparative Salaries

In the U.S., H-1B workers on Deel’s platform earn a median salary of $140,000. American workers in equivalent roles earn about $130,000. The analysis shows that immigrant workers are younger, averaging five years less than their U.S. peers, suggesting early entry into high-paying roles.

Top venture-backed U.S. startups show foreign workers earning a median salary of $260,000, which surpasses American colleagues by about $100,000. The concentration in AI and technical roles drives this disparity. Economist Lauren Thomas highlights the gap as a result of specific, high-demand roles challenging to fill with local talent.

Diverse Findings and Global Comparisons

Contrasting research suggests H-1B workers may earn 16% less than U.S. workers after adjustments, showing variability based on methodology.

Globally, the analysis covers high-skilled workers moving to places beyond the U.S. In the U.K., Skilled Worker visa holders earn an average of £96,000, outpacing British citizens at £87,000. Similar trends appear in the United Arab Emirates. Deel notes immigrants’ roles in engineering and tech, while citizens fill roles requiring local knowledge, such as sales.

Kevin Lynn of the Institute for Sound Public Policy criticizes the analysis as unreliable, pointing to longstanding concerns about wage suppression. He references cases of Americans training their H-1B replacements before layoffs as examples of broader displacement worries.

Legal Update on H-1B Visa Fees

A federal court recently struck down a controversial $100,000 fee on H-1B visa applications, implemented by the Trump administration. U.S. District Judge Leo Sorokin ruled the fee unauthorized without congressional approval. It aimed to protect American jobs but was criticized for its potential to deter vital talent.

The ruling impacts employers, who feared reduced recruitment and competitiveness. It underscores the complexity of visa-related policies and their implications.

H-1B Visa Requirements and Duration

The H-1B visa targets foreign professionals in specialty occupations requiring a bachelor’s degree or equivalent experience. Common roles include software developers, engineers, healthcare professionals, and financial analysts. Employers must sponsor applicants and demonstrate the necessity of specialized knowledge.

The program is competitive, with 85,000 new visas available annually, excluding renewals. Standard H-1B visas allow a stay of up to three years, extendable to six. Some pursuing permanent residency may qualify for further extensions.