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9rx 5 days ago

> Contrary to the conspiracy theories, H1B requires the employer to pay market wage or higher [...] where finding a qualified candidate becomes a challenge.

Something doesn't add up here. If you are paying the market wage, you fundamentally cannot have challenges finding qualified candidates. The market wage isn't established until you already have someone agreeing to your terms...

H1B is built around the concept of past market wages. This is why the 'conspiracy theories' state that H1B drive down wages. Not because the H1B workers are paid less than other workers, but because they are paid the same.

Consider the scenario where yesterday it took $20 per hour to find a willing worker. Your competitor hired that person. Said worker isn't going to come work for you for $20 per hour. He is already positioned with that. He would come work for you for $30 per hour, though. You could offer him $30 per hour, or you could cry and say that you can't find anyone and then hire an H1B for $20 per hour. Technically, in this scenario, the market wage became $30 per hour, but since the H1B was introduced you were able to bring it back down to $20 per hour.

Which isn't much of a conspiracy theory. That's just basic economics. The macro effects are considerably more complicated, of course. H1Bs are granted on the understanding that having two workers being paid $20 per hour is more net beneficial to society than one worker making $30 per hour. Including economically over the long term — where businesses that are able to expand with more workers will eventually be able to pay all workers more, although the "trickle down" crowd will dismiss that idea.

The so-called conspiracy theories disagree with that notion, believing, no doubt because they are thinking of it from an individualistic point of view rather than a worldly point of view, that they would be better off making $30 per hour instead.

doganugurlu 2 days ago | parent [-]

You are right.

I was refuting the claims about H1B workers working for less.