Analysis of University Graduates’ Salaries
A recent study by the Economic Innovation Group (EIG) reveals that university graduates who immigrated to the US on student visas earn notably higher salaries compared to those who are born in the country. As of 2023, the median salary for US natives with university degrees sits at around $87,000. In contrast, foreign graduates on student visas report a median income of $115,000.
India and China stand out as the largest sources of foreign alumni, with approximately 372,000 and 303,000 graduates, respectively, employed full-time as of this year. Indian alumni earn a median income of $146,000, while their Chinese counterparts bring in $125,000, both figures exceeding the median salary of their native-born peers.
Moreover, those who come to the US on student visas tend to lean toward careers in research and development or often venture into entrepreneurship. EIG notes that these foreign graduates are also twice as likely to have earned a master’s degree and six times as likely to hold a doctoral degree compared to those born in the US.
The report highlights that the surge in Optional Practical Training (OPT) programs over the last decade is not due to exploitation by students or institutions but stems from the failure to increase work visas to meet demand. The H-1B visa process has been termed a kind of “recruiting roulette,” where candidates often face long odds regardless of their qualifications or employer support.
In late May, President Donald Trump ordered US embassies to pause new student visa interviews as part of an initiative to enhance social media scrutiny among applicants. His administration further restricted recognition of foreign students by Harvard University.
Yet, following recent trade discussions with China, Trump indicated that American universities would still be enabled to accept Chinese students under a newly established agreement.
When questioned about national security concerns related to Chinese students in the US, Trump affirmed his support for international students, including those from China, stating, “I’ve always been in favor of students coming from other countries. That includes China. We’ve got half a million Chinese students in.” He acknowledged the need for monitoring but emphasized that scrutiny should extend beyond just students.
As for recent graduates, they are currently facing a challenging job market. The unemployment rate for individuals aged 20-24 is now at 6.6%, significantly higher than the overall rate of 4%, marking the worst figures in over a decade, even excluding the pandemic’s impact.
