No Effect Of Trump’s $100K Fee On H1B Visa? What’s Happening?

It is already known that the Donald Trump administration in the United States has started to impose huge sanctions on the H1B policy. In this context, it was communicated that a massive 100 K dollar fee would be imposed on new H1B applications henceforth.

A new research report from the National Bureau of Economic Research says that even if the cost of H1B visas doubles or goes much higher, companies in the United States may still hire foreign workers at nearly the same rate.

The main reason is cost savings. Many firms pay H1B workers less than comparable US born employees. That wage difference gives employers a financial incentive to continue hiring foreign talent even when visa fees rise.

According to the study, visa fees would need to go extremely high before they start to significantly reduce demand for foreign skilled workers. In practical terms this means that raising fees alone may not be enough to slow down recruitment of H1B workers. The report also points out that hiring decisions are driven by the need for specific skills that are in short supply in the local labor market.

If employers cannot easily find qualified workers in the United States, they are likely to absorb higher visa costs as a normal expense of doing business. As a result, wage differences and skill shortages play a bigger role than visa costs in shaping hiring practices.