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 Builds a Successful Life in New York After Mother’s Deportation
Angel Reyes Rivas, the co-founder of a thriving technology company, has sacrificed more than most to become an educated, middle-class professional. When he was in high school, his mother was pulled over for driving without a license. As an undocumented immigrant from Peru, she was handed over to Immigration and… Read More
California Student Uses DACA Status To Start a Business
As soon as Ovier Alvarez, an undocumented immigrant from Mexico, was granted the right to legally work in the United States, he started a photography business. Alvarez is a Dreamer, one of roughly 800,000 who has so far received protection under Deferred Action for Childhood Arrivals (DACA), a 2012 policy… Read More
DACA Recipient Dreams of Buying His Mother a House
Shortly after Jesus Perez began working as a social science research assistant at Johns Hopkins University, his 10-year-old brother asked for an ice-cream cone. Perez felt deep gratitude that he could say yes. As the undocumented son of Mexican immigrants, he didn’t have such luxuries when he was young. “Having… Read More
Our Latest Research on DACA
Recent attention has turned to the question of the 800,000 young people who have received DACA status since the program’s creation in 2012. To help paint a more complete picture of the impact of winding down DACA, New American Economy has completed research into several factors that deserve examination and… Read More
Economic Impact of Dreamers is Tremendous, Says South Carolina Lawyer
In 1980, when Marie-Louise Ramsdale was 10 years old, her father, a metallurgical engineer, got a job in America and relocated the family from Britain to South Carolina. Ramsdale suffered from culture shock — “I had no idea what pizza was,” she says — but settled in quickly, thriving at… Read More
CNN: The big decision on Dreamers: What Congress should do
One outcome of President Trump’s surprise budget deal with Democrats is a potential December showdown over the fate of the Deferred Action for Childhood Arrivals (DACA) program and its hundreds of thousands of young beneficiaries. All eyes will turn to Congress — where, admittedly, a major immigration deal has eluded… Read More
Florida Dreamer: Americans Do Not Understand How Complicated Immigration Process Is
In 2000, Juan Escalante’s parents fled the violence of their native Venezuela. His mother and father, owners of a small print shop, were subject to targeted carjackings and death threats. Finally, enough was enough. They wanted safety for their three young children. So, in search of a better life, they… Read More
Post Independent: Editorial: The smart, American thing to do: Protect Dreamers
First, we offer thanks and praise to Cory Gardner and Michael Bennet, Colorado’s U.S. senators, for signing on as co-sponsors of the latest version of the Dream Act. The bill, backed by four Republican and six Democratic senators, would establish permanent residency and a path… Read More
Washington Post: Distinguished persons of the week
President Trump and Attorney General Jeff Sessions this week chose to use the beneficiaries of the Deferred Action for Childhood Arrivals (DACA) program as fodder in their battle for the hearts of angry white nationalists. Their phony legal deadline — no lawsuit had been filed — concocted by Republican governors… Read More
Dreamer Counsels Long Island Students to Dream — and Work Hard
In 2012, Carolina Perez was on the verge of getting a bachelor’s degree in psychology and sociology at Hunter College, in New York City, but she was depressed about her prospects. Born in Chile, Perez came to the United States with her family when she was 11 years old. Once… 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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