Hacker News new | ask | show | jobs
by hibikir 3442 days ago
The prevailing wage comes from a chart: you don't just do research or come up with it. Figuring out which prevailing wage to use among the existing job descriptions is already a matter of judgement, and you can just aim for the low one.

Publishing the position locally is easily skirted: It's not published in places that people look at, it's not written in a way that makes it sound appealing, and often has some nonsensical requirements: In practice, you don't get local workers applying to them.

Then, there's how you hire for positions as junior as possible, and you keep the person there for 6+ years (the green card process can take pretty much forever if you are mean enough to your employee).

I was an H1B. My compensation was pretty fair when I started compared to the US employees around me, but as years went by, I kept taking on more responsibilities, but my salary didn't change to match. Once the green card process started, changing jobs became extremely unappealing, not just because risks of having to restart the green card process, but because to apply for a green card, my employer asked me to agree to pay attorney fees and costs if I left before the green card was awarded plus one year. Any job worth applying to would have been higher responsibility than the paper job I had been hired for originally, so would I be able to transfer by PERM filing across employers in the first place? Not guaranteed. So I kept the job: Being European in the early 2000s, there was a signifiant green card backlog for me, but not a decade long, so I could wait. All in all, I was an H1B for 8 years.

In the next 3 years after I got the green card, I changed jobs a couple of times and my salary more than doubled: I went from being called a plain engineer that just happened to report to the CTO to becoming principal engineer at a Fortune 500 corporation. It's 5 years later, and last year I made 5 times what I was making in my last H1B year: That level of catch-up doesn't come from me improving that much in the last few years, but total catch-up from where I started from.

Imagine what the big outsourcers, who handle many thousands of H1B applications a year, can do to suppress wages further.

2 comments

Thank you for your insightful comment - I wish people like you would testify in front of congress on the abuses of the H1B process that are clearly widespread.

It's depressing to think about the stress and anxiety this might cause someone who is literally facing deportation if he doesn't "suck it up" and keep working at a sweat shop for the same salary they were hired at 5+ years ago.

I'm on an H-1B, and the thing that infuriates me about the dialogue on this is that they are effectively trying to ban skilled immigration, and exclude people like me from coming.

If you don't qualify for the family-based or refugee route, employment-based immigration is the only viable pathway. The amount of hate I see piled on people trying to come here via the employment-based immigration seems insane to me. These people make it seem like employment-based immigration is not as respectable or legitimate, compared to refugee/asylum and family-based immigration.

The problem with requiring higher wagers is that for people like me, who were students in US -- it's very hard to get an ultra-high salary for the first job out of college. I was a student (on an F-1 visa), and my first job out of college offered me $60,000/year. On my first job on my H-1B visa (in NYC), I was offered $85,000 a year (got slightly over $100,000 with bonuses). Then, just about a year and half later, I was paid (mostly through lucky bonuses) slightly over $200,000 in a single year.

If you raised wage requirements, you'd basically be not allowing people like me to continue to stay and work in the US (after graduation from college), and would instead only allow people from outside who have lots of experience (and skill) and can command a much higher salary upfront.

I mean when it comes down to it choosing a neurosurgeon over an entry level software developer makes a lot of sense.

What is wrong with wanting to prioritise people who have lots of experience and skill?

Why even prioritize? The need to prioritize assumes the existence of arbitrary numerical limits on immigration.

I think we should just eliminate the limits on employment-based immigration entirely, with the only restriction being that such immigration does not depress US wages (which is already implemented as the LCA today). At the very least, use qualitative limits, not quantitative limits.

But even better, just let peaceful immigrants in. Before 1921, if you were white, there were no restrictions on you moving to the US. So, let's go back to the pre-1921 immigration policy, with the slight modification that non-white people are not banned. The Libertarian Party makes a good argument: https://www.lp.org/issues/immigration

> I think we should just eliminate the limits on employment-based immigration entirely

> But even better, just let peaceful immigrants in.

How would the US absorb the hundreds of millions who would come?

Immigrants are only going to stay in this country, if they can be successful here. For example, if they can open up a business and generate enough revenue to live a better life, or if they can find a job that affords them a better life than they had in their previous country.

Obviously, only a fool would stay here if their condition of living is worse here. If their life is worse here, they'll just move back! Duh! Immigration dropped sharply during the Great Recession, and large numbers of immigrants were actually leaving the country.

The one restriction I support personally is: No welfare or any kind of public support for immigrants. We don't want moochers. Also: don't allow them to sleep on the streets and stuff. We don't want the poor from the whole world flooding our streets, and asking for hand-outs. Kick them out. If someone can't be economically successful in this country, and make enough money to support themselves (i.e. through a job or a business), don't allow them to stay here. That's a reasonable restriction.

Economics will become a natural regulator of immigration. Those who can be successful here will stay. Those who can't will leave. I can predict that, under such welcoming immigration laws, the country's total GDP will grow massively.

On another note, people with facetious concerns about there only being a limited supply of jobs should read up on this: https://en.wikipedia.org/wiki/Lump_of_labour_fallacy

We had an insane level of immigration during the 1880-1921 period, and have we been poorer as a result for it? The US per capita GDP is exceeds that of most Western countries. (I guess one of the downsides is that NYC is now littered with pizza stores everywhere. Thanks Italian immigrants who flooded this country in the early 1900s!) This book covers this history in detail: https://amazon.com/gp/product/0809053446

I'm utterly and thoroughly opposed to those anti-free-market half-loosers who want to "protect" their jobs by preventing competition from others. This is just like the folks who want to require a license for everything, and want to use the power of the state (i.e. the threat of violence) to limit competition from others. With respect to immigration, I very reluctantly (partially) support mandating that immigrants be paid at least as much American workers, as this will prevent wage depression (even though this is an un-libertarian position). Our existing immigration laws already require this with every employment-based visa application. It's called the LCA (Labor Condition Application).

However, from a principled libertarian point of view, if another person else is willing to do your job for less money, well then, that's how much your work is worth. It's bad for society on the whole, for you to artificially inflate your pay grade by limiting the supply of available workers in your field.One of the reasons why medical costs are so high in the United States is that the supply of doctors is severely curtailed by regulation. It drives up cost for everyone, and it a net drag (or a tax) on the rest of people who need medical care. Government-imposed regulatory limits (on professional licensing, trade, immigration, the right to work, etc) protect various small interest groups at cost to everyone else, and are generally bad on the whole.

Well, unless they are flagrantly violating labor rules/constitutional rights of the person by monitoring them at all times, there's really nothing (except the green card process I guess) that stops a worker on H1B from scouting for other opportunities that would pay better. Not all H1B's work for sweatshops, but I understand the system has been abused a lot.
> The prevailing wage comes from a chart: you don't just do research or come up with it.

Interestingly, companies can provide their own wage surveys in order to justify the salary on an LCA. They aren't required to use the DoL wage data. [0]

"For the H-1B, H-1B1, and E-3 programs, employers have the option of using one of three wage sources to obtain the prevailing wage: (1) requesting a prevailing wage from the NPWC; (2) using a survey conducted by an independent authoritative source; or (3) using another legitimate source of information."

Larger companies are using #3. Since it is so vague and there isn't any oversight within the program they are able to manipulate the survey to provide results to their benefit while still claiming "We pay the prevailing wage! (according to our shady wage survey)"

[0] https://www.foreignlaborcert.doleta.gov/pwscreens.cfm