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  • Article: H1B Visa Program Shown to Increase Employment and Wage Rates. By Sheila Danzig

    H1B Visa Program Shown to Increase Employment and Wage Rates

    by


    The H1B visa program does more than simply create opportunities for highly skilled workers to live in the United States and work. Since its conception in 1990, the H1B program has been shown to stimulate job creation and increase wages for US-born workers with degrees in all professional fields.

    H1B visa holders create jobs in a multitude of ways. To start with, these workers are highly skilled and work specialty occupations that require assistants and other supporting jobs available to workers who have not yet completed their degrees. In fact, the Bureau of Labor Statistics estimates that increasing the number of H1B visas available annually could lead to 1.3 million new jobs in the US by the years 2045 with an increase of $158 billion to the national GDP.

    H1B visa holders also stimulate economic growth because they add additional incomes to the US economy. These employees are making prevailing wages for highly skilled jobs, they’re sticking around for three to six years, and they’re bringing their families with them. These people rent homes, buy clothes, go grocery shopping, and buy cars. Their children need clothes and schooling, and participate in activities. This is why more employment opportunities are available to people in all occupations and areas of expertise in places where more H1B workers live.

    The H1B visa program has been statistically associated with significant wage increases since the beginning of the program in 1990. The National Bureau of Economic Research published a paper in May of 2014 showing significant wage increases for employees in STEM fields in 219 different cities in the United States. These wage increases were driven by the H1B program. One reason for this is thought to be because H1B workers tend to make higher salaries than US-born workers because their labor conditions are more tightly controlled. However, since these workers are making more money, it puts pressure on companies to pay their US-born workers better as well. Judging by the Bureau’s findings, companies respond to this pressure by raising wages for everyone.

    The US economy was built on immigration and would grind to a halt without it. More highly skilled workers in the market – particularly those whose working conditions are carefully monitored – means higher wages and more jobs available for everyone. It means pressure on companies to be up to standard on labor conditions and workers’ wages. Supply and demand works differently for things than it does for people. If there is too much of one thing available on the market, its value gets driven down. Fortunately, people aren’t things and more highly skilled, highly paid employees creates higher labor standards and wage rates, as well as more job opportunities for everyone.

    Reprinted with permission.


    About The Author

    Sheila Danzig is the director of Career Consulting International at the www.TheDegreePeople.com, a foreign credential evaluation agency. CCI specializes in difficult cases and RFEs, Denials, NOIDs, 3 year degrees etc. and offer free review of all H1B, E2, I140 education at http://www.ccifree.com/?CodeILART/ or call us at 1.800.771.4723 ext. 15


    The opinions expressed in this article do not necessarily reflect the opinion of ILW.COM.

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