[sjg007]

I think wage suppression was a side effect despite good intentions. In addition, H1Bs are/were a mechanism for outsourcing companies to win US IT contracts. Auctioning visas may not solve this problem.

Other causes of recent wage suppression include the no-poaching and other gentlemen agreements among the big players in the Valley. In addition the basic, I'm not going to pay more than the other guy (or the minimum I can get away with).

Wage suppression comes in other forms too. Asking for previous salaries, asking for W2s etc... Some companies are so large that they just refuse to pay more as well. But that's just "the market" at that point. In every company there's some maximum value for you.

The only way to escape this is to start your own company.