Feeds

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

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

Build a business case: developing custom apps

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). ®

Next gen security for virtualised datacentres

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.