Do H-1B Employers Underpay Their H-1B Employees?

Research by the Cato Institute says no.

100% of H‑1B Employers Offer Average Market Wages—78% Offer More

The Economic Policy Institute (EPI) released a report last week that purports to show that “H‑1B employers undercut local wages.” Employers use the H‑1B program to hire temporary foreign workers in specialty occupations. EPI writes, “By setting two of the four wage levels below the median—and thereby not requiring that firms pay market wages to H‑1B workers—the DOL [Department of Labor] has in effect made wage arbitrage a feature of the H‑1B program.” This post explains why this is mistaken.

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