alt Hacker News> the wage suppression
Do immigrants earn less than locals?
My impression is that the salary is similar. I am not in the US, but I rejected job offers from across the pond in the past and the salary seemed to be on the level with what I know is paid in the US for that position.
My guess is that what they like in H1B workers is that they are sort of stuck with that employer, as changing jobs under such a Visa can be tricky no?
Replies
Yes, but because the H1-B holders have to find a new employer within 2 weeks or lose their visa, the threat of firing is the same thing as deportation, making for a form of indentured servitude. That forced loyalty, more than the salary, is the real draw.
I don't think wages are suppressed because immigrant tech workers make less money. Instead, It seems like the effect of the dramatically increased supply of workers would dominate, effectively lowering wages; i.e., you can pay less money for a job the more workers there are to take the job.
If you look at the total cost of an employee and not just an annual salary, then the fact that they have far less mobility makes them cheaper. Why hire the person who will bail when you mistreat them so you have to spend all that time and money finding someone new when you can have someone who risks deportation if they decide they are done with your bullshit.
I could afford to spend the next six months out of work looking for a replacement job. No one on an H1B can because they would be in violation of their visa. They will tolerate far more nonsense than I will.
This is the wrong logic. Immigrants can make exactly the same as natives and still suppress wages.
Fundamentally how prices are set is someone sets a price, and if there are no takers they change the price. If a company offers a salary, and they bring in an H1-B to fill the role, they don't have to raise the salary. Over time it suppresses the wage.