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 York’s First Undocumented Lawyer: ‘We All Have a Voice’
In 2016, Cesar Vargas became New York state’s first openly undocumented lawyer. It was a major personal accomplishment for Vargas, whose mother brought him to the United States when he was 5 years old, and for New York, which became the third state in the nation to allow undocumented immigrants to… Read More
DACA-Eligible Entrepreneurs Earned More Than $658.7 Million in Total Business Income in 2015
NEW YORK, NY – As the fight to protect Dreamers continues in Washington, NAE is releasing data every day showing just how much DACA-eligible immigrants contribute to the American economy. In today’s installment, we focus on entrepreneurship, and highlight that DACA-eligible immigrants – much like immigrants overall – start businesses at… Read More
New American Economy Launches 15-State Ad Buy to Push DREAMer Legislation
NEW YORK, NY – In effort to push Congress to quickly arrive at an immigration compromise that secures the fate of nearly 800,000 DACA recipients—and up to an additional one million DREAMers—living in the United States, New American Economy is launching a six-figure ad buy in 15 key states across the… Read More
Dreamer Wants To Teach Kids, Instead Lives in Fear
In 2016, when Laura Perez was granted the right to legally work in the United States, she was finally able to come out of the shadows and,contribute more to her community and family. Perez is one of Utah’s more than 13,600 recipients of Deferred… Read More
It’s the Economy: Nation’s Oldest State Really Needs Its Dreamers
Publicly, Sharon McDonnell’s son’s friend goes by the name “S.” That’s because S is an undocumented immigrant. And although she now has Deferred Action for Childhood Arrivals (DACA), a policy that currently shields her from deportation, she cannot be sure how long she will remain protected. None of the country’s… Read More
The Washington Post: ‘A bad dream’: Pro-immigration group headed by Michael Bloomberg targets 14 senators over fate of ‘dreamers’
A pro-immigration group headed by former New York City mayor Michael Bloomberg is targeting 14 senators in a new television advertisement and phone campaign this fall over the fate of young undocumented immigrants known as “dreamers.” In a six-figure ad buy launching Wednesday, the group, New American Economy, describes the… Read More
Dreamer: Given the Opportunity, We Work Hard
In 2012, when Leonel Nieto, an undocumented immigrant from Mexico, received the legal right to live and work in the United States, he quickly began achieving the milestones of American adulthood: He bought a house, took out a car loan, and earned a master’s degree in information technology to support… Read More
Caught in Limbo, STEM-Educated Dreamer Ponders a Move to Canada
Ecuadorian immigrant Edison Suasnavas is part of Silicon Slopes—a science, technology, engineering and math (STEM) hot spot that is propelling Utah’s economy. He holds a master’s degree in animal science from Utah State University and works as a molecular oncologist at Arup Laboratories, in Salt Lake City,… Read More
Despite an Uncertain Future, DACA Law Student Continues to Help Others in Oklahoma City
Javier Hernandez was brought to the United States when he was a 1-year-old. In the 24 years since, he has founded a tutoring and mentorship program for high school students in his home town of Oklahoma City; tutored college students in math; coached little league soccer; and worked as a… 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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