The visa goes where it is worth most
A lottery hands a scarce permit to whoever draws it. Weighting by wage level hands it to whoever pays most for it against the going rate for that occupation and place, which is a rough measure of where the worker will produce most. Rough is the right word, and it is the subject of the first argument against.
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Value
The stream is output: goods and services produced that would not otherwise exist, because a scarce work permit sits with the employer who values it most rather than with whoever won a draw. That belongs to the class this site uses for economic systems and prosperity. Where higher pay reflects more productive work, the whole of that extra output counts, whoever ends up with it — the worker as pay, the government as tax, the employer as margin. Where it reflects only a higher position on the wage table, nothing more is produced and nothing is counted here. The value sits in the middle-upper part of the scale, at the level this site uses for economic output.
Impact
Allocating a fixed number of permits to those who bid most for them raises total output as long as the bid tracks the value produced. The bid here is the offered salary measured against the four wage levels published for the occupation and the place — not an absolute salary ranking across occupations. Against a median compensation of about 103,000 dollars for workers starting H-1B employment in 2025 [3], one level is worth about 20 percent, or 20,600 dollars a year, in a range from 9,900 to 30,000 dollars; the range is wide at the bottom because part of the shift comes from a smaller pool and from employers choosing the occupation code or work site that lifts the level without lifting the pay. Across 85,000 people that is about 1.75 billion dollars of additional pay. Half of that is taken to reflect more productive work, in a range from a quarter to three quarters; the rest is a higher position on the wage table without more output, which the argument on public finances deals with. On the productive half the employer keeps a margin above the wage, which is what made the job worth filling: twenty percent is used, in a range from 5 to 40 percent. That gives about 1.05 billion dollars a year for each cohort, and 2.0 billion averaged across the four years, with 1.9 cohorts in the workforce at once. The upper end would be justified if the specialist roles at issue are genuinely hard to fill; the lower end if employers are largely bidding against each other for the same people. Nothing here assumes any additional worker enters the country, because none does. The Impact is the largest in this debate, because a better match between permit and job raises what the same 85,000 people produce.
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| Additional pay of the people selected range 8,500 to 26,000 euro-equivalent each (about 9,900 to 30,000 dollars) [2][3] | 85,000 × 17,800 euro-equivalent (about 20,600 dollars each, at 1.16 dollars to the euro) | 1,510 million euro-equivalent | |
| × | Part that reflects more productive work Setting, range 25 to 75 percent: the rest is a higher position on the wage table without more output | 50 % | 755 million euro-equivalent |
| × | Plus the margin the employer keeps above the wage Setting, range 1.05 to 1.4: what made the job worth filling; the low half of the range is used because firms winning permits in the old lottery largely substituted rather than expanded [4] | 1.2 | 906 million euro-equivalent |
| × | Cohorts in the workforce at once, averaged over the four years each year's 85,000 selections start work from October at the earliest and stay for at least three years; across the four years from the first weighted draw in March 2026 that averages about 1.9 cohorts in the workforce at once | 1.9 | 1,721 million euro-equivalent |
| ÷ | Normalised Impact scale of this evaluation | 200 million euro-equivalent a point | 8.6 |
Plausibility
The claim that a higher bid signals higher value is a proposition about markets, not a measured finding, and the market in question is unusual. The counterfactual is the same 85,000 permits drawn at random, and no study compares output under the two allocations, because the weighted rule is nine months old. What can be said is that the H-1B lottery has been used as a natural experiment before: comparing firms that won permits against those that did not, researchers found the winners did not expand employment or patenting much, which suggests they substituted the new worker for someone they would otherwise have hired [4]. If that holds generally, the surplus from any single permit is smaller than the wage suggests, which is why the margin used here sits at the lower end. The confounder that would matter — that high-paying firms differ from low-paying ones in ways that also raise output — is not removed by anything, since no design separates the two. Reverse causation does not arise. The Plausibility is below the middle: the reasoning is sound in outline, no measurement supports the size, and the one clean study on adjacent ground points to a smaller effect than the wage implies.
Open: Firm-level output and employment for FY2027 winners against FY2026 winners, matched on size and sector, would put a number on the margin and could carry P to 6.