[codebyaditya]

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]

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]

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.

[garbawarb]

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]

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.

[unmole]

> 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]

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.