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.
New American Economy Statement on the Tentative Reopening of the Federal Government
Following a tentative agreement between President Trump and Congress to reopen the federal government for three weeks, New American Economy issued the following statement: “We now have three weeks to get this right with a deal that provides permanent protections for Dreamers and Temporary Protected Status holders while smartly securing… Read More
New American Economy Statement on President Trump’s Immigration Proposal
Following President Trump’s speech on Saturday, January 19, New American Economy issued the following statement: “Americans want a secure border and immigration reform that provides permanent protections for Dreamers and Temporary Protected Status holders,” said John Feinblatt, President of New American Economy. “Today’s proposal falls short. Protections that are only temporary… Read More
The Kansas City Star Commentary: Kobach, Yoder campaigns said immigrants are scary. Their loss proves we’re changing
Over the past few weeks, we have watched as the Trump administration’s nativist, anti-immigrant ideology has brought our government to a grinding halt. The partial federal shutdown has directly impacted the well-being of more than 800,000 federal workers, their families and the American people who rely on government services. But… Read More
Free Times Opinion: Sound Off: It’s Time to Protect South Carolina’s Dreamers
With the government shutdown continuing, pundits are asking whetherPresident Trump might resurrect a deal that came tantalizingly close last year: reopening the government and funding a border wall in exchange for protecting Deferred Action for Childhood Arrivals (DACA) recipients, the young… Read More
Ballot Measure 105 Could Cost Oregon More than $329 Million in GDP
PORTLAND, OR – As Oregon voters consider Ballot Measure 105 ahead of the November 6 election, new research from New American Economy (NAE) highlights the negative economic impact the state could face if Oregonians vote “yes” to repeal Oregon Revised Statute 181A.820, the state’s 31-year-old anti-racial profiling law. Measure 105… Read More
Almost 44 Percent of All U.S. Fortune 500 Companies in 2018 Were Founded by Immigrants or Their Children, New Research Shows
NEW YORK, NY—Today, New American Economy (NAE) released new data showing that almost 44 percent of 2018’s Fortune 500 companies were founded by immigrants or their children. Among these are some of the largest and most successful companies in the world, including Apple, Amazon, Costco, and Bank of America. Together,… Read More
Courthouse News Service: Increased Immigration Raids Affect Economy in the Heartland
CHATTANOOGA, Tenn. (CN) — Stephanie Teatro recalls the April day when federal helicopters circled over a meatpacking plant in Grainger County, Tennessee and Immigration and Customs Enforcement conducted its biggest workplace raid in years. “That really signaled the return to these mass worksite enforcement operations, and Tennessee was the site of… Read More
New American Economy Statement on Immigration Legislation in the House of Representatives (H.R. 6136 and H.R. 4760)
NEW YORK – “The House is failing to meet the moment on immigration,” said John Feinblatt, President of New American Economy. “Despite months of healthy, bipartisan negotiations in both chambers, the House is voting on hardliner wish-lists that not only leave too many Dreamers in legal limbo, but also set… Read More
Arkansas Catholic: Immigrants contribute more than $2 billion to LR area
Immigrants make the city of Little Rock rich beyond just cultural diversity. Their presence creates $2 billion for the state. According to recently released research conducted by the New American Economy along with the Little Rock Regional Chamber and the City of Little Rock, foreign-born residents of the metro Little… Read More
Grecia Chavira, guest columnist: Living in limbo in the land of the free
In my junior year at University High School, I considered dropping my plans to attend college, even though I was ranked at the top of my class. As an undocumented immigrant — my family came here from Mexico when I was age 8 — I realized that even if I… 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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