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.
Washington Post: White House claims ‘dreamers’ take jobs away from blacks and Hispanics. Here’s the truth.
It’s a long-running talking point spouted by Trump administration members and the president himself: Undocumented immigrants are taking jobs away from black and Hispanic Americans. Hours after President Trump dismantled an Obama-era program that had granted 800,000 young undocumented immigrants permission to live and work in the United States, White House Press… Read More
Bloomberg View: Trump’s DACA Failure Is Congress’s Opportunity
An executive’s job is to make tough decisions and convince people to follow you. That’s what CEOs are hired to do — and it’s what we elect presidents to do. By punting the legal status of young immigrants to Congress without offering his own proposal, President Trump has failed an important… Read More
Buzzfeed News: Scrapping DACA Could Cost The Economy As Much As $215 Billion
Reversing the Deferred Action for Childhood Arrivals program could cost the economy $215 billion in lost GDP and cost the federal government $60 billion in lost revenue over 10 years, according to the libertarian think tank the Cato Institute. Ike Brannon, a visiting fellow at Cato, wrote in a recent blog post: “It is… Read More
POLITICO: Trump’s DACA move resuscitates immigration reform left for dead
President Donald Trump, who launched his campaign with a forceful attack on immigrants, is now the man responsible for catapulting immigration reform back into contention. Attorney General Jeff Sessions announced Tuesday that the administration would rescind the Deferred Action for Childhood Arrivals program, an Obama-era executive action that protected from… Read More
Washington Post: Companies to offer ‘dreamers’ legal protection as Trump scraps DACA
President Trump’s decision Tuesday to scrap an Obama-era program allowing young undocumented immigrants to work in the United States would fall most heavily on the hospitality, retail and construction industries, which together employ nearly half of the 1.3 million immigrants initially eligible for protection, according to an analysis by New… Read More
WBUR: Boston Business Leaders Blast Trump’s Decision To End DACA
Boston-area business leaders say they’re disappointed with the Trump administration’s decision to end the Deferred Action for Childhood Arrivalsprogram. The program, known as DACA, granted temporary legal status to about 800,000 people whose parents brought them to the country illegally as children — including about 8,000 here in Massachusetts. Read More
Marketplace: CEOs are coming out in favor of DACA, but can their support influence Congress?
President Donald Trump announced plans Tuesday to roll back the Deferred Action for Childhood Arrivals program, but with a six month delay that would allow Congress to act. Last week, corporate leaders came to the defense of DACA recipients, also called Dreamers, who get deportation relief and temporary work authorization… Read More
Washington Post: How big business is trying to convince Congress to save the ‘Dreamers’ from Trump
Business leaders across industries, from tech to agriculture, are appealing to Congress to protect nearly 800,000 undocumented workers from deportation as President Trump is expected on Tuesday to announce a plan to revoke their permission to work. The Trump administration has indicated it would phase out the five-year-old Deferred Action… Read More
DACA Entrepreneur Gives Back, Offers Free Web Training
Ramiro Rodriguez is an ivy league-educated entrepreneur whose startup, the live-streaming company Riivet, recently graduated from a tech accelerator program to a company with a dozen steady clients. He is also an undocumented immigrant who owes his success to Deferred Action for Childhood Arrivals (DACA), a 2012 policy that allows… Read More
Spotlight on the DACA-Eligible Population
In 2012, the Department of Homeland Security implemented the Deferred Action for Childhood Arrivals (DACA) policy, which grants law-abiding undocumented youth a renewable two-year reprieve from deportation and the ability to work in the United States if they are in, or have graduated from, high school. Although there are currently… 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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