Undocumented Immigrants
It's essential that the United States ensure that people who come here do so legally. The reality, however, is that there are currently an estimated 11 million individuals living in the United States without legal status, the vast majority of whom are working, paying taxes, and contributing in both economic and non-economic ways to their community, often starting their own businesses, and playing integral roles in agriculture, construction, hospitality, and other industries that are essential to the U.S. economy.
Mexican DREAMer Finds Success Starting Catering Business in Reno
Gustavo VelascoOwner, GUsTO Catering & Meals See Gustavo highlighted in the Reno Gazette Journal Gustavo Velasco had just graduated from Reed High School when a family friend asked him what he wanted to study in college. As a recent immigrant who’d moved to Reno from Mexico with his… Read More
Statement from NAE Executive Director Jeremy Robbins on Immigration Provisions of House Reconciliation Bill
“The House reconciliation bill would take many important steps to make our broken immigration system more fair, more efficient, and a better driver of economic growth, including a pathway to citizenship for Dreamers, essential workers, and TPS and DED holders, along with important provisions to recapture unused visas and allocate… Read More
Statement from NAE Executive Director on Senate’s Budget Resolution
Following Senate Democrats unveiling their budget framework, New American Economy issued the following statement: “Throughout the course of the pandemic, Dreamers, TPS holders, farm workers and other essential workers have been a lifeline — caring for the sick, keeping our food supply chain in tact, and taking on many more… Read More
Statement from New American Economy on the Confirmation of Ur Jaddou
Following the confirmation of Ur Jaddou as director of the United States Citizenship and Immigration Services, New American Economy issued the following statement: “NAE applauds the confirmation this week of Ur Jaddou to lead the United States Citizenship and Immigration Services at a pivotal moment,” said Jeremy Robbins, Executive Director… Read More
New Data Highlights the Economic Contributions of DREAMers in Major Texas Metros
Analysis confirms DACA-eligible residents pay hundreds of millions of dollars in taxes, wield billions in spending power annually in Texas metropolitan areas HOUSTON– Today, Texans for Economic Growth (TEG) and the Texas Opportunity Coalition (TOC) released new data… Read More
Statement from NAE Executive Director Jeremy Robbins on passage of the Dream and Promise Act and Farm Workforce Modernization Act in the House
Following the House passing the Dream and Promise Act and Farm Workforce Modernization Act, New American Economy issued the following statement: “The bipartisan House majority that passed the Dream and Promise Act and the Farm Workforce Modernization Act today shows that there is will in both parties to finally make… Read More
Quantifying the Impact of the Trump Administration on Immigration
Table of Contents: Naturalizations Permanent Residency H-1Bs International Students DACA Temporary Status Protected Given the upheaval of the past year since the beginning of the Covid-19 pandemic, it has been difficult to take full stock of the Trump Administration’s impact on immigration in… Read More
New American Economy Statement on Recent Federal Court Ruling to Fully Reinstate DACA
Following a federal judge’s ruling regarding the DACA program on Friday, December 4, New American Economy issued the following statement: “We applaud Judge Garaufis’ recent decision ordering the Trump administration to fully reinstate the Deferred Action for Childhood Arrivals (DACA) program, which will require the Department of Homeland Security to… Read More
“My Sun in Aquarius” Comedy Benefit Show
On Friday, May 15, 2020, in the midst of the Covid-19 pandemic, New American Economy, in partnership with the New York State Youth Leadership Council and comedian Julio Torres (Saturday Night Live, HBO’s Los Espookys and My Favorite Shapes), hosted “My Sun in Aquarius,” a digital comedy show to benefit undocumented workers… Read More
The DACA-Eligible Population
DACA-eligible people contribute billions of dollars to the U.S. economy. Clawing back the protections afforded to DACA recipients will likely upset local economies, communities, and schools, hurting employers and businesses dependent these young immigrants as workers and customers.
Filling Jobs in Key Industries
Most undocumented immigrants come to the United States because of work opportunities. These individuals are far more likely than the rest of the population to be in the prime of their working years, ranging in age from 25-64. Studies also indicate that undocumented immigrants are not displacing U.S.-born workers. Rather, they are filling jobs that few Americans are interested in pursuing.1 One sector, in particular, offers a striking illustration: Undocumented immigrants account for 50 percent of all hired field and crop workers, making them essential to the success and continued viability of American farms.2
Sources:
1 Maria E. Enchautegui, “Immigrant and Native Workers Compete for Different Low-Skilled Jobs,” Urban Institute, 2015. Available online.
2 Thomas Hertz Zahniser Steven, “USDA Economic Research Service - Immigration and the Rural Workforce,” United States Department of Agriculture Economic Research Service, 2013. Available online.
Top Industries by Undocumented Share of Workforce, 2018
Occupations where Undocumented Immigrants Make up the Largest Share of Workers, 2014
Economic Contributors, not Criminals
Contrary to popular rhetoric, undocumented immigration is not linked to a spike in U.S. crime rates. Between 1990 and 2013, a period when the number of undocumented immigrants more than tripled, the rate of violent crime in the U.S. fell by 48 percent.3 Instead of committing crimes, the vast majority of undocumented immigrants in the country are working4 and paying into our tax system.5 And because they are ineligible for most federal benefits, experts have long argued they are net contributors to the Medicare and Social Security programs.6 They have a similar impact at the state and local level. Even in Florida and Arizona, states with large undocumented populations, immigrants pay more in state and local taxes than they draw down in public resources like education each year.7
Sources:
3 Walter Ewing, Daniel E. Martinez, and Ruben G. Rumbaut, “The Criminalization of Immigration in the United States” (American Immigration Council, July 13, 2015). Available online.
4 George J. Borjas, “The Labor Supply of Undocumented Immigrants,” NBER Working Paper (National Bureau of Economic Research, Inc., 2016). Available online.
5 Lisa Christensen Gee, Matthew Gardener, and Meg Wiehe, “Undocumented Immigrants’ State & Local Tax Contributions,” The Institute on Taxation and Economic Policy, 2016. Available online.
6 Roy Germano, “Unauthorized Immigrants Paid $100 Billion Into Social Security Over Last Decade,” VICE News, 2014. Available online.
7 Emily Eisenhauer et al., “Immigrants in Florida: Characteristics and Contributions,” Research Institute on Social and Economic Policy, Florida International University, 2007. Available online.
Judith Gans, “Immigrants in Arizona: Fiscal and Economic Impacts” (Udall Center for Studies in Public Policy, University of Arizona, 2008). Available online.
Estimated Earnings and Tax Contributions of Undocumented Immigrants, 2018
Top 10 States where Undocumented Immigrants Contributed the Most in State and Local Taxes, 2016
Starting Businesses, Creating Jobs
Despite financing and licensing obstacles, undocumented immigrants frequently start their own businesses. In 2014, almost 10 percent of the working-age undocumented population were entrepreneurs. In more than 20 states, they boast higher rates of entrepreneurship than either legal permanent residents or citizens of the same age group. These self-employed workers frequently create American jobs. Their companies also generated $17.2 billion in business income in 2014.
Total Business Income of Undocumented Entrepreneurs in Key States, 2016
Costs of Deportation
More than eight out of 10 undocumented immigrants have lived in America for more than five years. Setting aside the question of whether policymakers have the political will to deport millions of individuals so well established in our society, studies indicate that any such effort would come at an enormous cost. The economist Doug Holtz-Eakin’s American Action Forum conducted one study on the cost of mass deportation.8 By even the most conservative estimates, finding, apprehending, detaining, processing, and transporting the undocumented population would deal a Great Recession-like blow to the U.S. economy.
Sources:
8 Ben Gitis and Laura Collins, “The Budgetary and Economic Costs of Addressing Unauthorized Immigration: Alternative Strategies” (American Action Forum, March 6, 2015). Available online.
Cautionary Tales
Deporting the estimated 8.1 million undocumented immigrants in the workforce would not automatically create 8.1 million jobs for unemployed Americans. The reasons are twofold: By shrinking the number of consumers, entrepreneurs, and taxpayers, mass deportation would shrink our economy and the number of jobs available. Secondly, natives and immigrants often possess different skills and education levels, meaning they are imperfect substitutes.9 Data from Arizona and Alabama, two states with strict immigration laws, offer cautionary tales.10
Sources:
9 “Immigration Myths and Facts” (U.S. Chamber of Commerce, April 14, 2016). Available online.
10 Bob Davis, “The Thorny Economics of Illegal Immigration,” Wall Street Journal, February 9, 2016, sec. Economy. Available online.
11 Ibid.
12 Samuel Addy, “A Cost-Benefit Analysis of the New Alabama Immigration Law” (Center for Business and Economic Research, Culverhouse College of Commerce and Business Administration, The University of Alabama, January 2012). Available online.
Economic Impact of a Path to Legalization
If Congress provided a path to legalization for the millions of undocumented immigrants already here, the economic benefits would be sizable. While legal status would increase access to a variety of public benefits programs, it would also allow newly legalized immigrants to pursue new job opportunities, boosting productivity and earnings. The accompanying increase in consumer spending and tax revenue would help federal, state, and local governments offset associated costs. If undocumented immigrants were required to pay back taxes, U.S. tax revenues would see a further boost.13
Sources:
13 Robert Lynch and Patrick Oakford, “The Economic Effects of Granting Legal Status and Citizenship to Undocumented Immigrants,” Center for American Progress, 2013. Available online.
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