Economic Impact
Adding it Up: Accurately Gauging the Economic Impact of Immigration Reform
With immigration reform legislation now making its way through Congress, it is imperative that we estimate as accurately as possible the full range of potential economic costs and benefits associated with any particular bill. It is especially important to establish the proper criteria for a complete, robust, and accurate fiscal scoring of any bill by the Congressional Budget Office (CBO). To that end, we should consider the growing consensus of the economic literature on the strongly positive benefits of immigration in general and of the various aspects of immigration reform in particular, as calculated using a variety of different methodologies. The CBO would be well-advised to keep this consensus literature in mind as it establishes the criteria it will use for scoring immigration reform legislation. More and more research demonstrates the economic benefits of immigration reform. The last few years have witnessed a burst in economic research showing the strongly positive net impacts of immigration in general and comprehensive immigration reform (CIR) in particular. Broad agreement has emerged as to not only the net economic and fiscal benefits of immigration and CIR, but the acceleration of those benefits over time. Moreover, these conclusions have been arrived at in studies utilizing a variety of different methodological approaches. It is important to point out that each of these different approaches is limited by a focus on separate aspects of immigration reform (Table 1). A complete methodological framework accounting for all of the components of CIR produces the largest-scale benefits. Read More
An Immigration Stimulus: The Economic Benefits of a Legalization Program
As the legislative debate over immigration reform heats up, a central point of contention will be whether or not to create a pathway to legal status for all or most of the 11 million unauthorized immigrants now living in the United States. In evaluating the pros and cons of a legalization program, it is important to keep in mind that legalization is not only a humanitarian act; it is also a form of economic stimulus. The example of the 1986 Immigration Reform and Control Act (IRCA) demonstrates that workers with legal status earn more than workers who are unauthorized. And these extra earnings generate more tax revenue for federal, state, and local governments, as well as more consumer spending which sustains more jobs in U.S. businesses. Recent studies suggest that the economic value of a new legalization program would be substantial, amounting to tens of billions of dollars in added income, billions of dollars in additional tax revenue, and hundreds of thousands of new jobs for native-born and immigrant workers alike. In short, a new legalization program for unauthorized immigrants would benefit everyone by growing the economy and expanding the labor market. Read More
The Advantages of Family-Based Immigration
Since the enactment of the Immigration and Nationality Act in 1965, legal immigration to the United States has been based primarily on the family ties or the work skills of prospective immigrants. Under the provisions of current immigration law, the family-based immigration category allows U.S. citizens and lawful permanent residents (LPRs), or “green card” holders, to bring certain family members to the United States. There are 480,000 family-based visas available every year. Family-based immigrants are admitted to the U.S. either as immediate relatives of U.S. citizens or through the family preference system. The contributions of family-based immigrants to the U.S. economy, local communities, and the national fabric are manifold. They account for a significant portion of domestic economic growth, contribute to the well-being of the current and future labor force, play a key role in business development and community improvement, and are among the most upwardly mobile segments of the labor force. This fact sheet provides an overview of the economic and social advantages associated with family-based immigration. In particular, it highlights the direct benefits resulting from the participation of family-based immigrants in the labor force, their contributions to the community, and the key—yet often underestimated—value of the unpaid care work provided by immigrant women. 1. Families are crucial to the social and economic incorporation of newcomers. Read More
The Dividends of Citizenship: Why Legalization Must Lead to Citizenship
The most concrete proposals for immigration reform thus far in 2013 include earned legalization with a path to U.S. citizenship for unauthorized immigrants already living in the United States. This is a process that essentially permits unauthorized immigrants to come forward and receive a provisional legal status that—after paying taxes, proving they understand English and civics, passing all criminal and other background checks, and showing they are committed to the United States—allows them to become lawful permanent residents (LPRs). From there, like other LPRs before them, they will have to decide whether or not to make the final commitment to their adopted country by becoming American citizens. Some critics of the new proposals argue that citizenship is too good for unauthorized immigrants, or that legal status is really all they need to thrive in this country. But that kind of short-sighted thinking ignores some very important facts: more than half a century ago the U.S. finally abandoned the idea that there should be a second-class status for any group by denying them citizenship and, in fact, today the vast majority of Americans support a path to citizenship. The integration of the 11 million unauthorized immigrants now living in the United States into full citizenship is not only good for those individuals, but the country as a whole. Citizenship, and the quest for citizenship, facilitates integration in myriad ways that legal status alone does not. From the learning of English and U.S. civics to the earning of higher incomes, serving jury duty, and voting in elections, citizens and would-be citizens benefit from a deeper form of incorporation into U.S. society than do legal immigrants who have no hope of ever applying for naturalization. Read More
Economic Progress via Legalization: Lessons from the Last Legalization Program
The data analyzed in this report indicates that unauthorized immigrants who gained legal status in the 1980s through the legalization provisions of the Immigration Reform and Control Act (IRCA) experienced clear improvement in their socioeconomic situation. Between 1990 and 2006, the educational attainment of IRCA immigrants increased substantially, their poverty rates fell dramatically, and their home ownership rates improved tremendously. Moreover, their real wages rose, many of them moved into managerial positions, and the vast majority did not depend upon public assistance. The findings presented in this report support the notion that legalization of unauthorized immigrants can play a role in promoting economic growth and lessening socioeconomic disparities. Reforming our immigration system is not an obstacle to getting our economy back on track—it is part of the solution. Originally Published Nov. 5, 2009 Read More
Back to the Future: The Impact of Legalization Then and Now
While there are many facets to an intelligent immigration reform package, one thing is clear: legalization for undocumented immigrants helps all of us. Most economists recognize that legalization has worked in the past. After a significant percentage of the undocumented population legalized under the Immigration Reform and Control Act of 1986 (IRCA), information on IRCA applicants was used to assess the legislation’s impact. My own research has shown that IRCA provided immediate direct benefits by successfully turning formerly clandestine workers into higher-paid employees. Other researchers have shown that IRCA provided unexpected indirect benefits to the communities where legalized immigrants resided. After legalization, fewer of these immigrants sent money back to their home countries, and those who sent back money sent back less. More of their earnings were spent in their communities in the United States. Research also showed that the legalized population became participating community members—nearly two out of five people who legalized under IRCA were U.S. citizens by 2001. What we learned from IRCA gives us a bird’s eye view into what we can expect to happen with a new legalization program. By examining three areas of concern: work, family, and community, we can see what economic and social benefits would be derived from a legalization program in 2013. By Sherrie A. Kossoudji, Ph.D. Read More
Citizenship Day 2012: Realizing the Potential of the Immigrant Vote
For many aspiring immigrants, achieving citizenship means full participation in civic life—and that means the right to vote. Every year, thousands of immigrants become naturalized U.S. citizens and exercise their new right. In the 2010 national elections, naturalized citizens comprised 6.4% of all voters. The voter registration rate among immigrants as a whole has risen since 2000. Just as importantly, a growing number of U.S.-born children of immigrants are now coming of age and becoming voters. However, the full potential of the immigrant vote has not been reached. There are more than eight million legal immigrants in the United States who are eligible to naturalize but have not yet done so. The latent electoral power of these voters-in-waiting is enormous. In many parts of the country their votes could potentially swing elections. As described in a series of Immigration Impact blog posts by Rob Paral, there are numerous counties across the country where the number of Legal Permanent Residents (LPRs) who have arrived since 1985 exceeds the margin of victory in the Obama-McCain election. Moreover, the voter rolls of many counties would grow dramatically if LPRs who are eligible to naturalize actually did so and registered to vote. Although this could not happen in time for the 2012 election cycle, it could make a difference in future elections. In many U.S. counties, the number of Legal Permanent Residents (LPRs) who have arrived since 1985 exceeds the Obama-McCain margin of victory. Read More
Economic Benefits of Granting Deferred Action to Unauthorized Immigrants Brought to U.S. as Youth
There are an estimated 1.4 million children and young adults in the United States who might benefit from President Obama’s announcement that the Department of Homeland Security would begin granting deferred action (and Employment Authorization Documents) to unauthorized immigrants who were brought to the United States as minors. For many of these young people, the United States is the only home they know and English is their first language. Each year, tens of thousands of them graduate from primary or secondary school, often at the top of their classes. They have the potential to be future doctors, nurses, teachers, and entrepreneurs, but their lack of legal status has prevented them from attending college or working legally. The President’s deferred action initiative will provide an opportunity for them to live up to their full potential and, in the process, make greater contributions to the U.S. economy. Read More
Public Education for Immigrant Students: Understanding Plyler v. Doe
This fact sheet provides an overview of the Supreme Court’s decision in Plyler v. Doe and subsequent efforts by states and localities to avoid compliance with the decision. Read More
Fatally Flawed: FAIR Blames Immigrants and Children for Maryland’s Financial Problems
In a case of very creative accounting, the nativist Federation for American Immigration Reform (FAIR) is blaming immigrants and children for Maryland’s fiscal woes. In a new report, FAIR lumps together unauthorized K-12 immigrant students with U.S.-born students who have unauthorized parents and claims that they are all costing Maryland taxpayers astronomical sums in educational expenditures. However, the report, entitled The Cost of Illegal Immigration to Marylanders, suffers from several fatal flaws. Read More
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