The use of H-1B workers by U.S. companies is decreasing wages for computer programmers, system analysts and software engineers by as much as 6%, according to a study released last week by researchers at New York University's Stern School of Business and the Wharton School of the University of Pennsylvania.
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"In this paper, we simply sought to dispel the myth that globalization generates no losers," wrote Prasanna Tambe, an assistant professor of information, operations and management sciences at the Stern School and Lorin Hitt, a professor of operations and information management at Wharton. The authors said that it's important that policy makers understand the wage impact of the H-1B visa program..
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What they found is that H-1B admissions at current levels are associated with a 5% to 6% drop in wages for computer programmers, systems analysts and software engineer categories. Offshore outsourcing also decreases wages for a broader category, including IT managers, by 2% to 3%, the study found.
The IT workers most likely to be affected by the downward pressure on wages are recent college graduates and people changing jobs, the researchers said. ...
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