Summary
An economic study by the National Bureau of Economic Research found that U.S. companies save a lot of money in payroll costs by hiring H-1B visa holders, paying them about 16% less than similar U.S. workers. This savings might be a reason for the high demand for H-1B visas despite a cap on their availability. The study suggests that firms enjoy big cost benefits, leading some to reconsider the motivations behind hiring H-1B workers.
Key Facts
- U.S. companies save nearly $100,000 in payroll over six years for each H-1B worker hired.
- Employers pay H-1B workers about 16% less than U.S. workers with similar qualifications.
- The demand for H-1B visas remains high, with more annual registrations than available slots.
- A new policy requires companies to pay a $100,000 fee for each H-1B visa starting in 2027.
- The study estimates this fee could rise significantly without reducing employer demand.
- Employers' cost savings might be a bigger motivation than worker scarcity for H-1B hires.
- The study examined over 340,000 H-1B hires from 2021 to 2024.
