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Which H-1B Workers Earn the Highest Wages? Distinctions by Visa Status at the Time of Petition

Author

Listed:
  • Sparber, Chad

    (Colgate University)

Abstract

H-1B status grants highly-educated foreign nationals the right to work in specialized occupations in the United States. Recent policy proposals include altering the method for allocating H-1B status, raising payments associated with entry into the country, and changing the limit on new issuances available. To help inform policy, this paper uses the universe of cap-bound H-1Bs awarded in fiscal year 2024 to examine how wages vary across different groups. Workers on F-1 student status accounted for 45% of new issuances, while another 43% went to individuals living abroad without any contemporary US immigration status. This former group earned 10% higher wages than the latter, or 6% more after accounting for observable differences between groups. Indian-born workers without current status seeking new employment at H-1B dependent firms earn the lowest wages. Policies favoring one of these groups over another -- whether intended or not -- will affect the average wage paid to H-1B recipients.

Suggested Citation

  • Sparber, Chad, 2026. "Which H-1B Workers Earn the Highest Wages? Distinctions by Visa Status at the Time of Petition," IZA Discussion Papers 18940, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18940
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    More about this item

    Keywords

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    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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