Overeducated and Underpaid: Characteristics of H-1B Visa Holders from New Administrative Records, 2014–2024

Abstract

Temporary visa programs have become the dominant channel for labor migration to the United States today. The H-1B visa is the largest U.S. work visa program and the primary pathway for high-skilled immigrants to enter and stay in the United States. Despite growing discussions on the H-1B visa program, little is known about the characteristics of H-1B workers, as visa status is rarely captured in nationally representative datasets. Drawing on new administrative records of all individuals who were approved for an H-1B visa between 2014 and 2024 (n = 3,396,170), this study provides one of the first population-level analyses of recent H-1B workers’ characteristics. Administrative records are combined with data from the American Community Survey (n = 3,089,405) to compare H-1B workers with U.S.-born and foreign-born citizen workers who are similarly employed. Findings reveal three key patterns. First, H-1B workers are highly educated and concentrated in computer science and engineering, fields where U.S. citizens are underrepresented. Second, nearly half are overeducated, primarily driven by advanced degree holders employed in occupations that only require a bachelor's degree. Third, H-1B workers earn 10.1 percent less than U.S.-born citizens and 12.9 percent less than foreign-born citizens in comparable occupations. The finding that H-1B workers are more likely than comparable U.S. citizens to be both overeducated and underpaid remains consistent across a range of demographic subgroups and is especially pronounced among Asian migrants. This study points to temporary visa status as a potential axis of labor market stratification in the high-skilled workforce.