By Admin 
Nowadays, many companies in America hire H-1B visa holders and this visa is given to those foreign workers who come to America especially to work in technical and professional fields. These visas have become an attractive option for employing companies because they allow them to save on labor costs. However, according to a new economic study, American companies pay their H-1B employees less than their American employees, which has become a big issue.
This study was conducted by the National Bureau of Economic Research (NBER), in which salary data of lakhs of appointees was examined. According to this research, H-1B visa holders are paid approximately 16 percent less than equivalent US workers, when factors such as education, occupation, age, gender and location are adjusted.
Salary difference between H-1B visa holders and American employees
In this research paper, it was found that if the salary figures are seen without any adjustment, then H-1B workers earn about 13 percent more salary than American workers. Although this figure is about workers who work in America’s high-wage technology sectors, when job role and geographic location are taken into account, the difference reverses and H-1B workers’ wages are 16 percent lower.
This means that the pay gap increases to 29 percent, which can be a big disadvantage for H-1B visa holders. George J. Borjas, who was part of the study, told Newsweek that he was surprised to see how many companies use H-1B visas and how many hire only one or two H-1B workers. According to him, the salary difference is huge even in these companies.
Companies are saving millions of dollars for H-1B visa holders
The study also revealed that these companies save a lot on salaries for their H-1B employees every year. According to estimates, companies that hired H-1B workers saved an average of $100,000 per employee over six years, a savings that could be attractive to companies, especially if they hire large numbers of H-1B workers.
High demand for H-1B visa and pressure from companies
Every year a large number of applications come to America for H-1B visa, but the number of these visas is limited. Between 2021 and 2026, there were more than 450,000 applications every year for only 85,000 visa places. However, these companies are still struggling to get visas. The study says that companies are trying to take advantage of these visas because of these savings and this helps explain the high demand.
Employer’s profit and worker’s loss
This study has also revealed that a major reason for paying low wages to H-1B visa holder employees is that the visa holders are tied to the company. This means that an H-1B employee does not have the opportunity to easily change jobs to another company. Because of this, companies can force these employees to work at lower wages because they do not fear that the employee will change jobs quickly.
Fees for H-1B visa will increase in future
From 2027, companies seeking H-1B visas will have to pay a fee of $100,000. This policy was announced by US President Donald Trump and was aimed at preventing abuses and raising funds for immigration services. However, this research shows that the savings of the companies are so high that they can easily bear this fee, without it causing any hindrance in their getting the visa.
Also read – These mistakes while filling UPSC form can cost you dearly, your dream can remain unfulfilled; Read this important advice first
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