Hacker News Reader

Comment by codebyaditya | Hacker News Reader

We analyzed 2.4 million H-1B Labor Condition Applications from DOL (2020-2024).

Key findings: - Product companies median: $150k - Staffing companies median: $99k - Annual gap: $50,950 (compounds to $305,700 over 6 years)

The mechanism appears to be mobility restriction creating monopsony conditions. When workers can't easily change jobs (employer-specific visa, 60-day rule), employers can offer below-market wages.

Used OFLC disclosure data, filtered to computer occupations (SOC 15-xxxx).

Happy to discuss methodology. Built an interactive calculator for people to check their specific situation.

View on HN

It's really shocking how hard it is for a skilled foreigner to get an EAD-like work permit that allows them to freely change employers. It takes 3+ years for most, and I think up to 15+ if you're from India. Of course the ability to suppress wages explains it.

Spot on. That 15+ year backlog turns a 'temporary' visa into a long-term economic trap. Our data actually showed the wage gap widens the longer a worker stays on H-1B (rather than converging with citizen wages), precisely because they are locked out of the free market (EAD) for the prime earning years of their career.

It's kind of an aside, but it also prevents the individual from doing the most economically efficient thing. I mean, suppose an H1B worker wanted to start a startup and hire some Americans to work for their company. They're legally not allowed to do that and create those jobs. Technically they need a business visa, but how would they get one if they can't start the business in the first place?

Exactly. We call this the 'Innovation Tax.' By legally tying workers to a single employer, the system prevents them from becoming employers themselves.

Our data showed 62% of H-1B filings use generic job titles like 'Analyst'—suggesting that even highly specialized founders are forced into 'cogs in the machine' roles. This isn't just a wage loss for the worker; it's a job-creation loss for the U.S. economy. No taking any side, but based on real data analysis quoting this.

> Our data actually showed the wage gap widens the longer a worker stays on H-1B

Isn't this because the majority of Indians on H-1Bs work for staffing companies?

The data shows it’s a structural feedback loop. Even comparing identical job titles in the same city, the $50k gap persists. The gap widens because citizen workers can leave staffing firms for raises at any time, while H-1B holders face 'mobility friction' (60-day rule/backlogs) that keeps them locked into lower-paying tiers longer.

Reply on news.ycombinator.com