I always see a lot of people arguing that H1bs are taking away jobs from qualified Americans by willing to work long hours and work cheaper. That may be true, but in my brief exposure to the tech industry it does not feel true because the salaries and perks are so high, it doesn’t seem like tech companies are exploiting workers and hiring “cheap H1b labour”.
A lot of my batch (all H1b masters) when to Meta and Amazon. All of them were paid 200k+ right out of masters, one was even paid 430k. So is the claim that if these H1bs did not exist, companies would pay 250k+ to those out of masters? And 500k+ to exceptional candidates? If OpenAI was legally allowed to hire anyone from India, China etc, would they stop providing 800k+ salaries? In fact, we know from experience that this is not true because if you go to OpenAI’a website they explicitly mention apply from wherever you want and they will handle immigration. And you also see that they did successfully hire some folks from remote countries with exorbitant salaries.
A much simpler explanation, is that in tech companies employees are not a cost center but a profit generation center. And so tech companies are not looking to save costs by paying H1bs less, but are simply looking to hire the best and pay whatever is needed to keep them. Market competition tends to determine salaries far more than employee labour pool, especially when talent is always in short supply.
This theory also seems more correct to me, in that it predicts places where H1b labor would shortchange existing tech workers. It would be wherever employees are a cost center, legacy businesses that need software but would like to just get it done as cheaply as possible. By definition most of these companies would not be FAANG adjacent, but would instead be companies like say Target that needs simple software that works reasonably well at a low cost. An equitable solution then would be to put a flat minimum salary on H1b’s, say 200k, that would remove most of the cases where H1bs are hired to short change Americans, and not affect much of the talent hiring that big tech does. It’s only negative affect would be on startups, which generally pay low salaries, but would now have to pay high salaries for immigrants.
this is a well-studied tradeoff with immigration. high-skilled immigration helps US economy and innovation but low-skilled immigration depresses wages for citizens. you are making this distinction for a narrow case i.e. tech.
A lot of my batch (all H1b masters) when to Meta and Amazon. All of them were paid 200k+ right out of masters, one was even paid 430k. So is the claim that if these H1bs did not exist, companies would pay 250k+ to those out of masters? And 500k+ to exceptional candidates? If OpenAI was legally allowed to hire anyone from India, China etc, would they stop providing 800k+ salaries? In fact, we know from experience that this is not true because if you go to OpenAI’a website they explicitly mention apply from wherever you want and they will handle immigration. And you also see that they did successfully hire some folks from remote countries with exorbitant salaries.
A much simpler explanation, is that in tech companies employees are not a cost center but a profit generation center. And so tech companies are not looking to save costs by paying H1bs less, but are simply looking to hire the best and pay whatever is needed to keep them. Market competition tends to determine salaries far more than employee labour pool, especially when talent is always in short supply.
This theory also seems more correct to me, in that it predicts places where H1b labor would shortchange existing tech workers. It would be wherever employees are a cost center, legacy businesses that need software but would like to just get it done as cheaply as possible. By definition most of these companies would not be FAANG adjacent, but would instead be companies like say Target that needs simple software that works reasonably well at a low cost. An equitable solution then would be to put a flat minimum salary on H1b’s, say 200k, that would remove most of the cases where H1bs are hired to short change Americans, and not affect much of the talent hiring that big tech does. It’s only negative affect would be on startups, which generally pay low salaries, but would now have to pay high salaries for immigrants.