@TechReport{iza:izadps:dp18435,
            	author={Clemens, Michael A.},
            	title={Immigrant-Native Wage Gaps and Immigration Tariffs: Examining the Case for an H-1B Visa Tax},
            	year={2026},
	month={Mar},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={18435},
            	url={https://www.iza.org/index.php/publications/dp18435},
	abstract={The US government in 2025 imposed a $100,000 tax on each high-skill foreign worker entering with an H-1B work visa. The only public economic justification calculates the tax to offset an estimated wage penalty for H-1B workers relative to US natives. But this estimate suffers from substantial bias. Reexamining the same data shows that H-1B workers receive a modest wage premium relative to comparable natives, roughly 6% on average—inconsistent with any wage penalty—when using equivalent wage concepts and comparing workers of the same age, gender, education, and tenure, in the same occupation and local labor market. I trace most of the discrepancy to four methodological choices that inflate the prior estimate: 1) undisclosed imputation of missing data, 2) pooling of non-contemporaneous years, 3) a definition of local labor markets contradicting standard economic practice and US law, and 4) failure to consider H-1B workers' low job tenure. The remaining discrepancy arises from comparing incompatible wage concepts for H-1B versus native workers. Beyond measurement, the theory of public economics implies that a revenue-maximizing immigration tax reduces welfare relative to alternatives, even with zero weight on immigrant welfare.},
	keywords={immigration;tax;h-1b;skill;stem;worker;labor;welfare;immigrant;nonimmigrant;visa;wages;gap},
            }