[JuniperMesos]

People applying for H1B visas are getting partially compensated in the right to legally reside in the US rather than in money. The right to legally reside in the US is something that a lot of foreigners want badly, and are willing to accept otherwise-poor compensation for; and by definition it is not something you can pay an American citizen with.

[alex43578]

Why is the company getting to pay their employee with that legal-residence-value and therefore get a discount on compensation?

The cleaner approach is the immigrant has to pay that value in visa expenses, taxes, or something else; while the company should have to pay market rate for the position.