The U.S. government’s recent decision to impose a one-time $100,000 fee on new H-1B visa applications has sparked concerns. This fee is a sharp rise from the previous few thousand dollars. It is expected to disproportionately affect young Indian women applicants. The H-1B visa programme is a key route for skilled foreign workers, especially from India. The new fee targets fresh applicants, making entry costly and potentially reducing opportunities.
Gender Disparity in H-1B Approvals
H-1B visa holders are mostly men. In the fiscal year 2024 (FY24), 74% of continuing workers were male, while only 26% were female. For initial employment approvals, women accounted for 37%. This shows women are gaining ground among new applicants but remain a minority overall. The fee hike will likely slow this progress, as it affects new entrants more.
Salary Differences and Economic Impact
Initial employment H-1B workers earn less than continuing workers. The median salary for new hires was $97,000, compared to $132,000 for continuing workers. The new $100,000 fee rivals or exceeds many new workers’ annual pay. This makes it financially unviable for employers to sponsor new hires. Women earn less than men across all salary levels. For example, women in the bottom salary quarter earned $71,000 versus $80,000 for men. This wage gap will discourage companies from sponsoring women, deepening gender inequality.
Country-Specific Gender Skew
Indian women face a sharper gender gap than women from other countries. India and China together account for 83% of H-1B beneficiaries. While the gender wage gap is evident among Indian workers, it is less pronounced among Chinese beneficiaries. This suggests cultural and economic factors influence the disparity.
Age and Educational Profile of Applicants
The fee hike affects younger applicants more. In FY24, 75% of women approved for new jobs were under 35, compared to 65% of men. Women also tend to have higher educational qualifications. Among new female beneficiaries, 44% had a Master’s degree, while only 39% of men did. Doctorate and professional degree holders were almost equal by gender. Despite higher education, women face tougher entry barriers due to the fee.
Implications for the H-1B Programme
The new fee raises the cost of hiring new H-1B workers sharply. Employers may prefer sponsoring experienced workers who pay no extra fee. This could reduce fresh talent inflow, especially among women and younger applicants. The long-term impact may alter the demographic and gender composition of the H-1B workforce, limiting diversity and opportunity.
Questions for UPSC:
- Discuss in the light of recent changes how visa fee structures impact gender equality and skilled migration patterns.
- Critically examine the role of H-1B visa policies in shaping India-U.S. economic and labour relations.
- Explain the causes and consequences of gender wage gaps in global skilled migration, with suitable examples.
- With suitable examples, discuss how higher education influences migration trends and employment opportunities for women in technology sectors.
