The law requires H-1B workers to be paid the prevailing wage for the occupation and location --
not the prevailing wage for the occupation, location and age.

If the explanation for the low wages being paid to H-1B worker is youth, then the system is being abused.

Anyone who has worked with offshore talent knows that most of them can definitely be categorized as having average to low talent.

Drawing a conclusion about how smart H1b visa holders are by only looking at their compensation packages, this study is poorly designed and concluded as far as I concern.

The conclusion that, since H-1B holders are earning only a prevailing 'minimum' wage , they must be entry-level workers, is non sequitur. Perhaps the better conclusion to derive from the 'minimum wage' claim is that employers are happy to pay little for good talent, an indication that system may indeed be abused.

Also, in the future, please ensure there are no gaping mathematical holes in the article, such as "41 percent of H-1B holders were younger than 30 years old, and 32 percent were under 35." By definitiion, a 35 and younger set is a superset of those under 30, so it must be bigger than 41 percent.

This is braindead analysis at best and really harmful to the U.S economy at worst! The H1B currently does not make any distinction between those that come here to get a Masters or PhD but most of it goes to programmers with specific skills. Then you conclude that they do not contribute to Innovation! Change the preferences to people with higher skill levels and innovation will certainly be seen. More than 50% of advanced degrees and more than 50% of all US patents are issued to foreigners. This is documented well. We will be shooting ourselves in the foot by favoring people with lower skills or no skills (as in the case of illegal immigrants that work as landscapers and roofers). We will only be accelerating the downfall of innovation by demagoging this issue like this!

I have to agree with the sentiment reflected in previous posts. This study is meaningless - wage and talent only have a superficial relationship when you are comparing resident American wages to guest worker wages.

I have worked with a good number of foreign (mostly Indian) IT workers, and their skills and talent range from completely useless to exceptionally talented, just like their US counterparts.

In general, I've found that when a contracting firm finds someone who they feel is worth the expense of flying them over to the US to work locally, they are generally pretty talented. Not always, but as a general rule.

Conversely, the ones who work from their home base are more likely to be somewhat less impressive. You do find some exceptional folks from time to time, but most of the really talented ones are sent over to work locally.

I guess you get what you pay for. I managed a team of about 10 remote Indian workers for a project. The Indian-based tech lead was very smart, but she had a team of lackluster programmers, and communication was difficult at best. I ended up doing a good deal of rework, and paying 11 people to do the work was barely justifiable. I could have hired a single talented programmer and completed the project with the same effort, less headache, and better end quality.

As to this actual article, I must say it's been some time since I've see a single sentence that close to 100 words long. The last time was a college paper I wrote back in the late 1980s. I got a "D".

I'll be generous and give the writing of the article a "C-". The content gets an "F".

Nari Kannan has a self-protection agenda in mind, but just because the study doesn't reflect well on him doesn't make it 'braindead' as he'd like us to believe.

Professor Norman Matloff is a well recognized authority in this area who has testified before congress. His credentials are beyond question.

Most of the H-1B visa holders are not high quality. In shop after shop I've seen them, at very best, are average.

They lack communication skills, write poorly, don't understand either America's culture or our corporate culture, and typically lack business knowledge. Without business knowledge they are just coders which are literally a dime a dozen. H-1Bs often have little knowledge of how ERP systems work, or how to build an application.

I've seen many Americans clean up messes left behind by H-1Bs.

Here are some of the stats that Nari referenced:
* 45% of life scientists, physical scientists, mathematical & computer scientists in the U.S. with a Ph.D are foreign-born.
* Nearly 38% of scientists and engineers in the U.S. with a doctorate are foreign-born.
* 1 in 3 U.S. Noble Laureates is foreign-born.
* 1 in 4 U.S. patents has a foreign-born inventor.
* Children of immigrants comprise 65% of the 2004 Math Olympiad's top scorers (13 out of 20), and 46% of the U.S. Physics Team (11 out of 24).
* At the 2004 Intel Science Talent Search which recognizes the nation's top math & science students:
- 50% were immigrants or their children.
- As were 7 of the top 10 awardees
- And 75% of 2003�s top 4 awardees

As the 2004 Study by the National Foundation for American Policy stated: �If we had listened to the anti-immigration crowd over the past 20 years, we would have wiped out two-thirds of the future scientists and mathematicians in the U.S. because we would have barred their parents from ever entering America.�

My concern is, who will fight for this country if there is a was at home? Will it be the H1-B immigrants or any other immigrant? Nope! Most likely they will go back home.

Most of the workers who leave the comfort of their homeland will be average compared to the local folks-that�s a conclusion always drawn for all sectors-tech, railroad building, auto, plantation, ....so on.

But my point is: Americans either do not want or not many are available to fill the Tech maintenance spots-which are really painful and involve long hours of slogging month after month. Most of the companies want to fill these positions with H1-B or push the jobs to an outsourced location. Another type is not very big budget but a killer project that might give the manager(s) big promotions. He/She has to be innovative so he/she has to have options. Fill up here or outsource [which is not preferred].

Those who come for PhDs and MS are generally very good and cannot be included in this "not-so-good" bucket. So to sum up, does America benefit from this: my answer will be Yes- either directly [specialized skills] or indirectly... H1-b staff does the maintenance to stabilize the systems for 6-9 months contract and then American takes over [at least it does move outside the country].

As for this professor-well he should have great qualifications but his position demands him to write and tell what the lobbyist want to hear and hence the screw-up in numbers above..[ based on their assumptions that ordinary American won�t understand these].

Apparently, there are enough smarts around to create statistics to support either view. In my experience, I have seen the gamut of abilities from brilliant to abysmal but I have also seen an abysmal candidate get the job because he/she was substantially cheaper.

One point that hasn't been reflected in the comments or the article is that many of the H-1B folks under 35 years of age are single or at least don't have many family responsibilities and so can affort to receive lower pay than a local worker.

The predominance of young imports indicates age discrimination.

Not only are the older US technical workers forced to go tend bar, but those with more age and experience are left in their home countries. So my conclusion is that the US goverment through the H1B program violates age discrimination statutes.

I am not qualified to judge native intelligence because everyone who has ever worked for me, regarless of background or Visa status, has become a superstar techie.

I see one major test that the author has failed to address. How do these H1-B holders salaries compare to an average US citizen after they become green card holders or citizens. This comparison could clarify the cause-effect conclusion. Are the H1-B holders in-fact being paid average US wages because they are H1-B and are willing to work for average salaries. This test would clarify which is the cause and which is the effect. All the author presents is a correlation and jumping to the conclusion of cause-effect. If the salaries jumped significantly after they get their green card, or citizenships, I would suspect that the cause the effect are actully reversed on his argument. This would effectively mean that the H1-B holders are definitely taken advantage of by their employers and retained at lower salaries than they would otherwise be worth at a fair market scenario which is the biggest assumption in this case.

As I can attest from repeated experience managing teams composed of workers primarily from India and, to a lesser extent, Asia, there is a pattern that does not bode well for business.

Let's say for argument's sake there is a group of 10 coders. On average, 2 or 3 will be downright sub-standard workers. 2-3 more will be mediocre at best. 2 more may be 'average'. Only one will be a real 'wiz kid'. The secret assumption is that if the mediocre or sub-par performers get in trouble, the 'wiz-kid' will bail them out.

Yes, these workers can be gotten 'cheaply'. But propjects still cost more - much more - in the long run.

H1Bs are just as useless or just as brilliant as their American counterparts.

Some of them are a real pain-in-the-neck as the H1B program gives prominence to education instead of experience.

It is also true that most H1Bs command lower salaries than their counterparts in similar positions.

There are a few reasons behind this (some of these may vary depending on who you check with.

An H1B employee is not a free person. He is bound to an employer. Apparently a person on H1B has to find sponsorship(an expensive process for the employer) before he can work here. In return for the sponsorship, the employee agrees to receive lesser pay than he would otherwise demand.

Then there is the Green Card situation.

It takes anywhere from 5 to 7 years for most H1Bs to get their Green Cards. From the time Green Cards are applied for, till the time it becomes official, the employee has to remain with the same employer.

Talk about bound labor!

Again, till such time as Green Card is approved, the employer has to keep renewing the H1B every year for each employee -about $3000 to $5000 per year when you consider lawyers fees and USCIS fees. Guess whose paycheck is that money coming out of. Imagine having to pay $5000/- per year just to continue working.

I guess its still better for them here with lower salaries (than they should be getting) than going back to the misery they left behind.

All these factors help to depress the H1B salaries. Without taking this into account, the study becomes quite meaningless.

I too was confused by the math, (see excerpt from Ivan's comment below). Perhaps a documentation person would have made the differential by age groups, (under 30, 31-35, etc), which is the only way the article sort of makes sense.

Also, in the future, please ensure there are no gaping mathematical holes in the article, such as "41 percent of H-1B holders were younger than 30 years old, and 32 percent were under 35." By definitiion, a 35 and younger set is a superset of those under 30, so it must be bigger than 41 percent.

Rich

I have read all of the posts to this article and have to say i am a bit appalled by some responses while others have brought a smile to my face... as this discussion has been long overdue...

America the land of the free and one which you can survive given the right opportunity like any nation / government system likes to always take the best of the best and discard the remainder.. so to read this article and then jump to the conclusion that off all the ways you can secure hardworking immigrant "labour" such as the H1B schema is being abused to the benefit of the H1B holders or the companies that are issued the right to hire such individuals i dare you to succumb to the H1B process...

Its a long and arduous task as described by Different John Doe and what do you get for it.. i cant say that I am speaking based on facts just my personal experience.. where you can live in and contribute to a countries economy for over 8 years as you progress from student life where you are allowed to live like everyone else except your focus is your degree and to pay high/ exorbitant tuitions for the right to go to school and the prestige of getting a degree from a US university and then when you want to make something of yourself if you are giving the opportunity to work and earn like everyone else whom you rub shoulders with for your first 4 years if you dont go on to do a masters...

you are then relegated to immigrant status.. skill is never brought into the picture because in the land of the immigrants you are but another number without a green card or citizenship you dont have the right to do anything but pay taxes and work for hopefully an employer you can tolerate otherwise you risk expulsion and its under these pressures that H1B workers are forced to work everyday not to mention the salaries which are agreed upon by the lawyers and the labour department based on location and how little the company wants to pay you without being penalised for underpaying you as per the given payscale...

Its easy for some americans to blame immigrants workers for their loss of jobs but explain this process to them and they cant believe that we jump through this many hoops to only be chastised instead of appreciated...

As far as the best and brightest goes who doesnt want that for any economy but instead of complaining about the quality of worker maybe more can be done to evaluate this criteria instead of whose job will be lost and how much you will have to pay for your substandard employees...

as with all systems their is an exception to every rule therefore we shouldnt focus only on the negative aspects but on how it can be improved to allow not only the best and the brightest but those hardworking enough to prove their worth the opportunity to provide quality service in a hassle free / less policed environment...which they would defend like any other resident or citizen as they are allowed to fit in....

Theeese is veeery goud rticle...I am American IT worker out of jobb for 6 yeers now! I have understanded to learn how to talk the correct talk now...will I please get a job agin now suun??? I hav MBA BBA 20+ yrears xperiaance and am now ready for werk!!

this is much thanks to you...

Wow, my English parser just crashed … the “100 word sentence” is a fond memory of clarity.

H1Bs are used to abuse and undercut the American worker. In their own countries, they have laws protecting their jobs, however with corporations writing our laws , we are not afforded the same in the US. I have worked with H1Bs for over 10 years and I know all of the tricks, from falsified resumes to using variations of initials and names to be able to apply for multiple positions at the same company.

But who can blame someone for wanting to do well for themself? The real criminals are shills like Bill Gates and Obama, Hillary and McCain who tout the corporate mantra that Americans "don't have the skills". This is an outright lie. The truth is it is all about price. Young Indians are willing to put up with whatever they have to ship laks of Rupees home, that is understandable, but why does Bill Gates feel that he does not have enough money that he has to steal it with his lies, from the very workers who dedicated their careers to create the industry?

I noticed several of the responses confuse immigration with H1Bs status. I have no problem with immigrants coming to our country. I work with a number of Indian programmers who are American citizens and contribute greatly to local civic endeavors and excellent in the workplace. But I distinguish between them and H1Bs who are brought here for the low wages and to place pressure on American workers from looking for higher salaries and better benefits. In fact, I feel there has been a correlation between the hiring of large number of H1Bs and erosion of benefits and salaries.
Let more immigrants come to the US to live, work and contribute to our culture as they have for hundreds of years. But stop the influx of temporary, cheap labor that are here under the H1B fiction.

Anyone who has worked with offshore talent knows that most of them can definitely be categorized as having average to low talent

I cannot certainly agree with this B-s finding. First of all try the survey on when people come on H1-b. The general trend here makes an H1B bright and best to loose his capability because of the job conditions here (ofcourse the same factors affect others too). But this is no way acceptable survey.

H1B workers cannot change job very easily. So they cannot use the easy way of pay increase "switch job".

Also, Company plays a very significant role in the H1B process including your boss, that means you have to give all the credit of innovation to your boss to keep your H1B status alive.

I was trying to set straight some misunderstanding about H1B's. That's why this article was ill-informed and brain-dead.

If you go by just your "feelings" about H1Bs and what little you have seen of H1Bs, or accuse me of some agenda, you can stop right here and read no further. I have no desire to engage in a discussion with you. If you go by facts, reports, and adjust your own thinking for what you perceive as agendas of those who make the reports, read on ahead.

The point I am trying to make is that H1Bs are hijacked by companies for less skilled people and the country is suffering because less skilled IT hacks are taking the H1Bs that could be better used by those with Masters and PhD degrees that contribute to your prosperity. They are the ones that contribute to innovation. If you think this is an imagined problem read the reports at this site:

Kaufmann Foundation Study Points to Brain Drain of Skilled U.S Entrepreneurs to Home Country.
http://www.kauffman.org/item.cfm?item=906

Kaufmann Foundation was set up to encourage innovation, entrepreneurship. There are other reports in this web site you may want to carefully read. If after that if you think shooting yourself in the foot is the right way to go, go on ahead!

Even the prevailing wage numbers are made up...

For each category of job the DOL has either 2 or 4 experience level tiers for which they collect wage stats..

Well.. A few years back(2005) when the repubs pushed thru the "The Consolidated Appropriations Act, 2005" Public Law 108-447, a 3500 page bill, that no one had time to read ...

That law contained 10 pages of changes to the both the L-1 and H-1B programs.

http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_public_laws&docid=f:publ447.108

Besides adding a seperate NEW 20K grads from US univeristy cap.

It also created a number of artifical experience level wage tiers for job categories which had only 2 wage tiers.

ergo..

SEC. 423. H-1B PREVAILING WAGE LEVEL.

"Where an existing government survey has only 2 levels, 2 intermediate levels may be created by dividing by 3, the difference between the 2 levels offered, adding the quotient thus obtained to the first level and subtracting that quotient from the second level.''."

So in a sense.. for many categories their is no such thing as a prevailing wage..

Furthermore their is NO requirement imposing wage increases during the H-1B visa term (3 years).

And it's a given most of the data collected by the DOL and then later published is at least a year out of date. Insures that prevailing wages for H-1B workers are out of date by upwards of 5 years.

I.E.

1 to 2yr (data collection & publishing time lag) +
H-1B LCA application time (up to 6 months) +
April->Oct Fed FY time lag after H-1B lottery before entry(6 months) +
3 year term of initial H-1B visa.. ==

Five(5) to six(6) years of wage inflation missing from DOL prevailing wage calcs for H-1B's !!!

Other ways to bypass the DOL wage calcs...

Select lower paid categories, but use those imported H-1b's to displace higher experience US workers in higher wage & pay categories.

Nneedless to say..
US tech workers will always get the short end of the stick.
The H-1B program needs to be terminated, ASAP.

US corporations sell their products worldwide under the WTO arrangements, generating jobs and income to the American worker, yet at the first sign of competition, these workers start spouting racist and xenophobic nonsense.

A "study" that claims most programmers of Asian origin are not really outstanding at all ! yet corporation after corporation wants to hire these mediocre programmers at salaries that are in six figures. So much for common sense..

The WTO says nothing about giving free access to immigrate to any country that you please. The US allows more immigration than the rest of the world combined. Infosys Technologies, a company headquarted in India, is the largest employer of H1B visas. Attached are the jobs for which Infosys applied for H1B visas. Look at these pathetic wages. They are not the best and brightest!

http://www.h1bfacts.com/infosys-technologies-h1b-jobs-2007.html

The author seems biased and not knowledgeable of the world outside California (or outside USA).

The H-1B workers from the Asia accept the average offer (or even less) because of ample of other opportunities and benefits that they can get in USA , like peace, modern technology and and better life.

upsides & downsides of the 'agonies of the H1b (or L1) workers' HA. read on.
WHAT ABOUT THE AMERICAN CITIZEN TECH WORKERS WHO ARE BEING ROUTINELY PUSHED TO THE UNEMPLOYMENT ROLES WHEN OUR WONDERFUL AMERICAN COMPANIES SHIP JOBS OFFSHORE OR BRING IN H1b OR L1 WORKERS TO 'CONTROL EXPENSES' BY WORKING ONSHORE??? Where are the American citizen workers to work? Slinging burgers? Welfare roles??