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We analyzed 2.4 million H-1B Labor Condition Applications from DOL (2020-2024). Key findings: - Product companies median: $150k - Staffing companies median: $9

We analyzed 2.4 million H-1B Labor Condition Applications from DOL (2020-2024). Key findings: - Product companies median: $150k - Staffing companies median: $99k - Annual gap: $50,950 (compounds to $305,700 over 6 years) The mechanism appears to be mobility restriction creating monopsony conditions. When workers can't easily change jobs (employer-specific visa, 60-day rule), employers can offer below-market wages. Used OFLC disclosure data, filtered to computer occupations (SOC 15-xxxx). Happy to discuss methodology. Built an interactive calculator for people to check their specific situation.

garbawarb 9mo ago
It's really shocking how hard it is for a skilled foreigner to get an EAD-like work permit that allows them to freely change employers. It takes 3+ years for most, and I think up to 15+ if you're from India. Of course the ability to suppress wages explains it.
- codebyaditya 9mo ago
  Spot on. That 15+ year backlog turns a 'temporary' visa into a long-term economic trap. Our data actually showed the wage gap widens the longer a worker stays on H-1B (rather than converging with citizen wages), precisely because they are locked out of the free market (EAD) for the prime earning years of their career.
  - unmole 9mo ago
    > Our data actually showed the wage gap widens the longer a worker stays on H-1B Isn't this because the majority of Indians on H-1Bs work for staffing companies?
    - codebyaditya 9mo ago
      The data shows it’s a structural feedback loop. Even comparing identical job titles in the same city, the $50k gap persists. The gap widens because citizen workers can leave staffing firms for raises at any time, while H-1B holders face 'mobility friction' (60-day rule/backlogs) that keeps them locked into lower-paying tiers longer.
  - garbawarb 9mo ago
    It's kind of an aside, but it also prevents the individual from doing the most economically efficient thing. I mean, suppose an H1B worker wanted to start a startup and hire some Americans to work for their company. They're legally not allowed to do that and create those jobs. Technically they need a business visa, but how would they get one if they can't start the business in the first place?
    - codebyaditya 9mo ago
      Exactly. We call this the 'Innovation Tax.' By legally tying workers to a single employer, the system prevents them from becoming employers themselves. Our data showed 62% of H-1B filings use generic job titles like 'Analyst'—suggesting that even highly specialized founders are forced into 'cogs in the machine' roles. This isn't just a wage loss for the worker; it's a job-creation loss for the U.S. economy. No taking any side, but based on real data analysis quoting this.

garbawarb 9mo ago

It's really shocking how hard it is for a skilled foreigner to get an EAD-like work permit that allows them to freely change employers. It takes 3+ years for most, and I think up to 15+ if you're from India. Of course the ability to suppress wages explains it.

codebyaditya 9mo ago
Spot on. That 15+ year backlog turns a 'temporary' visa into a long-term economic trap. Our data actually showed the wage gap widens the longer a worker stays on H-1B (rather than converging with citizen wages), precisely because they are locked out of the free market (EAD) for the prime earning years of their career.
- unmole 9mo ago
  > Our data actually showed the wage gap widens the longer a worker stays on H-1B Isn't this because the majority of Indians on H-1Bs work for staffing companies?
  - codebyaditya 9mo ago
    The data shows it’s a structural feedback loop. Even comparing identical job titles in the same city, the $50k gap persists. The gap widens because citizen workers can leave staffing firms for raises at any time, while H-1B holders face 'mobility friction' (60-day rule/backlogs) that keeps them locked into lower-paying tiers longer.
- garbawarb 9mo ago
  It's kind of an aside, but it also prevents the individual from doing the most economically efficient thing. I mean, suppose an H1B worker wanted to start a startup and hire some Americans to work for their company. They're legally not allowed to do that and create those jobs. Technically they need a business visa, but how would they get one if they can't start the business in the first place?
  - codebyaditya 9mo ago
    Exactly. We call this the 'Innovation Tax.' By legally tying workers to a single employer, the system prevents them from becoming employers themselves. Our data showed 62% of H-1B filings use generic job titles like 'Analyst'—suggesting that even highly specialized founders are forced into 'cogs in the machine' roles. This isn't just a wage loss for the worker; it's a job-creation loss for the U.S. economy. No taking any side, but based on real data analysis quoting this.