Monday, April 27, 2009

Study: H-1B use cuts tech wages by up to 6%

From Computerworld, April 27, 2009...

The use of H-1B workers by U.S. companies is decreasing wages by as much as 6% for some IT workers, according to a study by researchers at New York University's and the University of Pennsylvania's business schools.

The study, released earlier this month by professors from the Stern and Wharton schools of business, concluded that H-1B workers' entry into the U.S. at current levels is causing a 5% to 6% drop in wages for computer programmers, systems analysts and software engineers. The study also found that offshore outsourcing decreases wages for a broader category of workers, including IT managers, by 2% to 3%.

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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