Feeds

Foreign IT pros in USA get paid more than Americans - study

H-1Bs 'can't be driving down US pay' insist analysts

Boost IT visibility and business value

Foreign IT professionals working in the States on H-1B visas don't cause a reduction in pay for Americans, according to a new study - because they actually get paid more than US citizens with similar qualifications, not less.

According to a survey of "more than 50,000 IT professionals in the United States" analysed by Sunil Mithas and Henry C Lucas of the University of Maryland, H-1B workers "earn a salary premium" compared to Americans with similar "human capital attributes" - eg qualifications and experience. The study covered the period 2000-2005.

The two business profs say that the cap on numbers of H-1B visas causes "supply shocks" in the US IT employment market, with lower, fully-utilised caps pushing up the premium paid by employers for foreign workers.

They argue for larger numbers of visas to be issued, saying that too-low caps motivate companies to relocate offshore where they can hire the foreigners they want without paying the H-1B induced premium.

The two profs contend that perceived damage to Americans' career and earnings prospects from the numbers of foreigners allowed so far cannot be real. They say that their research "provides indirect evidence that visa and immigration policies so far have not had any adverse impact on the wages of American IT professionals due to any relatively lower compensation of foreign IT professionals".

Their paper Are Foreign IT Workers Cheaper? U.S. Visa Policies and Compensation of Information Technology Professionals can be read here (subscription required). ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.