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.
Seacoast Online: New England Council urges immigration reform
An organization that represents businesses across New England is urging action to prevent the loss of thousands of immigrant employees from the already tight labor market. Jim Brett of the New England Council joined with the New American Economy last week in a media teleconference as a display of united… Read More
Santa Fe New Mexican: Time’s running out for Dreamers
Protection for adults brought illegally to the United States as children is still possible before the end of the year — that’s the word from U.S. Rep. Michelle Lujan Grisham. As chairwoman of the Congressional Hispanic Caucus, she is a point person on finding a compromise that Congress and the… Read More
The Washington Post: Democrats can’t shut down the government, but they can win on DACA
There is lots of talk about whether Democrats will try to shut down the government, after the two-week funding bill runs out, in order to get relief for young people affected by President Trump’s decision to rescind the Deferred Action for Childhood Arrivals program. Harry Enten at FiveThirtyEight ponders: “Democrats arguably… Read More
Without DACA, Gifted Linguist Faces Deportation Instead of Law School
When Santiago Tobar Potes was brought to the United States at age 3, he spoke only Spanish. Now 20 and a student at Columbia University, he has become a gifted linguist, teaching himself English, French, Portuguese, Italian, Haitian Creole, and Chinese, and now working on Arabic and Russian. He wants… Read More
KIMA TV: Yakima Valley’s economy could take a hit if immigrants are forced to leave in March
$1.65 billion dollars. That’s how much Yakima County made in 2014 from all its crop sales. Which such a large amount of money, it’s easy to see that agriculture is one of the driving forces of the county’s economy. That includes the valley’s famous apples and cherries. Luz Bazen Gutierrez… 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.
Make a contribution
Make a direct impact on the lives of immigrants.
