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.
Ninety Percent of DACA-Eligible Population Over 16 are Employed
NEW YORK, NY – As the President prepares to talk about immigration in his State of the Union address tonight, and Congress works to find a solution for Dreamers, New American Economy is releasing data and stories showing just how critical these immigrants are to our communities and… Read More
DACA-Eligible Population Contributes Almost $2.5 Billion to Key Social Service Programs
NEW YORK, NY – While Washington works to find a solution for DREAMers, New American Economy is showcasing the contributions and stories that highlight how the DACA-eligible population contributes to the U.S. economy. Already, NAE has highlighted DACA-eligible immigrant incomes and tax contributions. Today, we look at… Read More
DACA-Eligible Immigrants Paid $3 Billion in Taxes
NEW YORK, NY – While Washington works to find a solution for DREAMers, New American Economy is showcasing the economic contributions and stories that highlight how this population is so critical to our communities. Yesterday, we highlighted the annual income earned by the DACA-eligible population. Today, we spotlight tax contributions: DACA-eligible… Read More
DACA-Eligible Population Earns Nearly $19.9 Billion
NEW YORK, NY – As Congress and the White House spend the next two weeks attempting to reach a fair compromise that addresses the status of nearly 800,000 affected DREAMers, New American Economy will spend the next two weeks highlighting the economic contributions of DACA recipients and the DACA-eligible. The DACA-eligible… Read More
Deep in Conservative South Carolina, Republican Lawmaker Touts DACA’s Economic Necessity
South Carolina is one of America’s reddest states, and Pickens is its reddest county; 75 percent of voters in the county cast their ballot for President Donald Trump in 2016. But when Neal Collins, a Republican representing Pickens, introduced a bill to help South Carolina Dreamers get an education, his… Read More
An Unresolved DACA Would ‘Tear Our World Apart’
Carolina Hernandez-Arango is a business-administration major in her final year at Wichita State University. She is also a mother of two, a community organizer — and a Dreamer, brought to the United States from Mexico by her parents when she was 3 years old to receive urgent medical treatment. Now,… Read More
Brief Profile: Eager To Serve His Country, Dreamer Worries He May Be Thrown Out Instead
Luis Montesdeoca was still in high school when he decided to enlist in the U.S. Army. “I was drawn to the brotherhood and pride,” he says. “But then I found out that I didn’t qualify, because of my immigration status.” Montesdeoca was undocumented. When he was 15 years old, his… Read More
STEM Worker Worries He May No Longer Be Able To Contribute
Brad Figueroa’s parents brought him to the United States from Mexico when he was 2 years old. Six years later, his father died, leaving Figueroa’s mother to raise him alone, working service jobs to make ends meet. When Figueroa, now in his mid 30s, came of age, he immediately began… Read More
In the U.S. Since Age 13, Young Mother Calls DACA Her ‘Last Chance’
For Hyun Jung Kim, an undocumented immigrant from South Korea, last Thanksgiving in Anchorage, Alaska, was typical. “We had a big turkey and Jell-O salad,” she says. “As a family, we gathered, and had a meal together, and celebrated, and were thankful that we are all together.” Kim spent her… Read More
Statement on White House Immigration Proposal
In response to White House’s immigration proposal, New American Economy issued the following statement: “The cost of doing the right thing for Dreamers shouldn’t be a drastic and arbitrary cutback on legal immigration, or the undermining of healthy, bipartisan efforts in Congress,“ said John Feinblatt, President of New American Economy. “We hope… 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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