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.
Dreamer Could Help Ease South Carolina’s Shortage of Healthcare Providers
Jacqueline Mayorga was born in Hidalgo, Mexico, to poor but hardworking parents. Her mother was a maid in Mexico City, and her father was a migrant farmworker in the United States who sent money home to the family. When Mayorga was 3 years old, her parents decided to reunite the… Read More
DACA Allows Utah Grad To Provide After-School Care for Kids
Karina Palestina, 30, spends her days coordinating after-school care with the Park City, Utah, school district, but she dreams of a studying for a master’s degree in higher education. Holding her back is the uncertainty around Deferred Action for Childhood Arrivals (DACA), a 2012 policy that allows qualifying undocumented immigrants… Read More
DACA Soldier With Skills U.S. Needs Is Put on Indefinite Hold
When William Medeiros learned he could join the United States military, he was elated. As an undocumented immigrant — his parents brought him to the United States when he was 6 years old — Medeiros had few options. “I couldn’t work, and to go to school I would have had… Read More
Researcher Works on Children’s Blood Disorders — but Only With DACA
Today, Martin Rodriguez, a 26-year-old undocumented immigrant from Mexico, is a PhD student at Wake Forest University, where he is working on developing gene therapies for pediatric blood disorders. “I believe that fulfillment for any human being is best achieved through service to others,” Rodriguez says. “Helping children born with bleeding disorders is something I can… Read More
Enlisted and Standing Ready, Immigrant Marine Must Wait to Serve His Country
In 2015, John Sena and his twin brother were shocked when their mother explained that the family was undocumented. Then a high school senior in Covington, California, Sena’s dream was to become a U.S. Marine. His brother wanted to join the Navy. Three of their uncles had served, and Sena… Read More
NAE Statement on Immigration Sprint
Following the vote to reopen the government with a commitment to reaching an immigration deal by February 8th, New American Economy issued the following statement: “It’s frustrating that congressional leaders haven’t resolved this issue yet, but at least now, they have a three-week window with a clear mandate to come up… Read More
CNBC: Restaurant and construction industries would get hit the hardest if DACA expires
The stalemate in Washington over an immigration deal could rattle the labor force in key sectors of the economy, prompting several big-name companies to provide legal support to affected employees. The restaurant and construction industries would be hardest hit by the expiration of the program known as Deferred Action for Childhood… Read More
NAE Statement on Bipartisan DACA Effort
Following the announcement of a bipartisan immigration deal from Senators Graham, Durbin, Flake, Bennet, Gardner, and Menendez, New American Economy issued the following statement: “With hundreds of thousands of Dreamers at risk of deportation, it is encouraging to see Republicans and Democrats working together to find a solution,” said Jeremy Robbins,… Read More
Highlights from the iMarch
Watch the recap from December’s iMarch kickoff below. Learn more and get involved at iMarch.us. 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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