Thursday, August 25, 2011

It is the H-1B program, U.S. wages down move?


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Indicate the H-1B Visa Program, a group of American programmers or engineers, and you hear a cry of indignation. H-1B visa holders, it is commonly said, are responsible for the jobs away from hardworking American high-tech workers. In addition, disgruntled techies Americans often complain that H-1B workers are much less than their U.S. counterparts pay. They argue that companies typically use H-1BS as cheap labor, and that this translates into lower wages for Americans andForeigners. In response, defenders argue that the H-1B program, which helps grow the economy, foreign workers and that there are adequate safeguards to ensure they earn comparable salaries.

The truth is, I believe, lies somewhere in between.

The question of whether H-1B holders to take away jobs from Americans is perfectly legitimate, but what is rarely discussed in depth on both sides of this debate. But for now I will concentrate on the second of these questions,ie: "H-1B workers are paid less and less, so depressing and competitive wages for U.S. workers?"

First, I think it's fair to say that some H-1BS is significantly less than their U.S. counterparts pay. By law companies are required to pay their H-1B employees in accordance with the "prevailing wage" for work, but in determining the prevailing wage can be very subjective and full of loopholes. For example, a company can give their H-1B candidates for a jobTitles that do not accurately reflect its role effectively. Also, set the prevailing wage provisions (of necessity) on half rather hard to categorize the level of a candidate, and classification, the company has leeway in deciding how their job description file.

In addition, the stories are rich in hi-tech companies that employ foreign workers from the so-called "job shops" - consulting firms that specialize in providing low-income H-1B workers, usuallyIndia. Exact number can be difficult to find, since these relationships usually come from anecdotal sources or from a government audit that was conducted in 1996, but these stories are or easily discounted. I also once worked with two programmers (one from India, one from Pakistan) who had been recruited from the suit as, where he was embarrassed by the low wages paid.

However, while such abuses occur, I think it was the magnitude of this problemgreatly exaggerated. Various studies show that H-1BS much less than American workers are paid, but these studies are generally of interest groups that the H-1B program run against. No definitive research has not been proven these statistics to be true.

In addition, I would say that these studies are based on dubious statistics and methods. Above all, they fail to take into account that are typical of H-1B visa holder is a recent collegeDiploma, and thus relatively young. There should be no surprise that many Americans are less than they deserve to work in the same area. In fact, reports the National Science Foundation (NSF), the foreign-born professionals actually earn more than their American counterparts when people compared to age and levels of equivalent quality, and if we consider the year in which these statements were assigned.

Also, when critics say that H-1B holders are grosslyunderpaid, these symptoms usually both on anecdotal evidence or statements of prevailing wages, which were based on H-1B applications. Apparently it refers only to individual cases, however, and says nothing about H-1B cases overall. How to pay the prevailing wage certificates, these figures give only the minimum wage, employers are entitled to, do not point to wage levels that are actually paid.

Not surprisingly, citizens of the United States and immigrationServices (USCIS) makes the H-1B wage levels available to the public, making it impossible to compare the actual salaries. However, asked the National Foundation for American policy to select a prominent law firm at 100 randomly selected H-1B cases from his client file. These files contain both the prevailing level of wages and the real wage and salary levels reported as USCIS. The result? On average, the average salary of more than 22% higher than the prevailing wage. OverThis figure does not include any wage increases after the applicant has been done. Although we can not conclude that these cases are representative of the H-1B wage levels, in general, this means informal study with the problem of jumping to conclusions only on the usual wage figures show.

In fact, the setting of H-1B candidates are chosen more expensive than hiring a native born workers. Stop when hiring a U.S. citizen, the cost is not usually the job, soH-1B applicant. Rent in an H-1B foundation usually requires about $ 6,000 in additional legal fees and government - and those who are not even the cost of additional work in-house staff personnel. If the employee seeks green card sponsorship, this could take a supplement of $ 10,000 maybe more. In addition, sponsorship can be an H-1B visa or a green card is a risky business, with no guarantee of success. Maybe some corporate sponsors of H-1B holdersTo save money, but if so, these savings are due to additional legal costs and headaches involved balanced.

Moreover, in contrast to other figures, the statement that foreign workers earn much less hi-tech Americans. Similarly, a study reported by the Centre for Labour Market Studies at Northeastern University, the foreign-born and native professionals in math and science is virtually identical to earn wages. The same study found that in computer science andMathematics was about the same salaries for graduates master, and were even higher for graduate and doctoral programs. Salary levels were comparable for all three levels within the life sciences. Native American engineers with bachelor's or master, but earned more than their foreign-born counterparts, but the situation was reversed when it came to PhD.

So in summary, it is true that H-1B visa holders are paidmuch less than workers in the United States? Sometimes this is true. Overall, I think, however, that this alarming statement is greatly exaggerated, and we have good reason to believe that usually pay well. For this reason, I think that we should not quickly conclude that this influx of H-1B workers, the wage level grinds down.


It is the H-1B program, U.S. wages down move?

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