A new study has claimed that even a steep $100,000 fee on H-1B visas may not stop US companies from hiring foreign workers.
The research was published by the National Bureau of Economic Research and authored by economist George Borjas.
The study examined the wage gap between American workers and H-1B employees and whether higher visa fees would really reduce demand for H-1B hiring.
According to the study, H-1B workers earn about 16% less than US-born workers with the same education, age, experience, location, and job role. Because of this gap, employers still save a large amount of money by hiring H-1B workers.
Borjas noted that even with a $100,000 visa fee, companies benefit because the total salary savings over the six-year H-1B period is close to $100,000 per worker. This makes H-1B hiring financially attractive despite higher costs.
The study further claims that even if the visa fee is raised to $150,000–$200,000, it may not significantly reduce the number of H-1B workers hired. Employers may still be willing to pay such fees due to long-term savings.
Borjas also estimated that higher visa fees could generate $10–$20 billion in annual revenue for the US government and lead to a more highly skilled H-1B workforce.
He added that the H-1B system gives employers more control over workers because visas are tied to specific jobs. This, combined with the annual cap of 85,000 visas, makes H-1B workers a limited and valuable resource; further keeping wages lower.
The study concludes that immigration delivers greater economic benefits when it focuses on highly skilled workers, which explains why companies continue to rely heavily on the H-1B program despite rising costs.
