October 2002
In recent years the U.S. government has encouraged closer trade, investment, and political ties with Mexico, but has labored in vain to control the flow of labor across the border. "The demand for low-skilled labor continues to grow in the United States while the domestic supply of suitable workers inexorably declines,"1 writes Daniel T. Griswold, author of the Cato Institute's most recent report. The study, "Willing Workers: Fixing the Problem of Illegal Mexican Migration to the United States," examines the U.S. government's current immigration policy, and gives substantial evidence supporting the benefits of legalizing Mexican migrant workers.
Important Considerations
According to Mr. Griswold, reforming the Mexican migration process would have a tremendously positive effect on the U.S. economy. In one stroke it would allow American employers to hire the workers they need to grow their businesses. It would expose a huge underground market of false documents. Working conditions and wages would be improved for millions of low-skilled workers. There would be renewed incentive for employers to invest in the education of their workforce. Personnel and resources would be free to allocate to the war on terrorism.
An Open Labor Market
Economists generally agree that immigration benefits the United States. The author explains that both the Bush and Fox administrations are acutely aware that the flow of goods, services and capital benefit people in both the sending and the receiving countries. In the paper, the author cites a recent 2002 Economic Report of the President that estimates immigrants raise the net income of Americans by $1 billion a year. In 1997, a similar study done by the National Research Council also found that immigration delivers a "significant positive gain" to the nation's workforce of $1 billion to $10 billion a year.
"Laws should be in harmony with the way
people choose to live their lives."
-CATO Report
The author contends, "the demand for less-skilled labor will continue to grow in the years ahead." He suggests that immigration is a prominent solution to the gaps that will be left in the labor market by an aging workforce and rising education levels. From 1990 to 2010, the median age of U.S. workers is expected to rise from 36 years old to 40, leaving a tremendous amount of employment vacancies that our domestic labor force is unlikely to fill. With the number of essential worker jobs expected to grow by more than 700,000 a year, and a shrinking pool of American's eager to fill those jobs, Mexicans provide a ready and willing source of labor.
Papers Please
For over the past two decades U.S. border policy has done very little to prevent illegal migrants from crossing the border. According to Mr. Griswold, the increase in funding and border patrol agents does not deter migrants; it only increases the cost and risk of crossing the border. By expanding the legal channels available to immigrants, Mr. Griswold suggests the INS would dissolve the underground market that exists for illegal transportation and false documents. The money that was once spent on illegally entering the U.S. would now go directly into government reserves.
The study also explains that previous measures to control Mexican migration have backfired by forcing immigrants to stay longer than intended. Mr. Griswold points out that many undocumented workers feel trapped, unwilling to leave the country due to the cost and risk of repeatedly migrating.
Before the passage of the Immigration Reform and Control Act (IRCA) of 1986, the average stay for migrants from Mexico was 2.6 years; by 1998, after a decade of perpetual border operations, the median stay had risen to 6.6 years. "A U.S. border policy aimed at reducing illegal immigration has perversely encouraged undocumented migrants to stay," says Mr. Griswold. He suggests that a circular labor flow, as opposed to permanent migration, is in the best interest of both nations.
An Honest Dollar
Because of their status, undocumented workers have very little bargaining power in the workplace. The study explains that government sanctions imposed on employers who knowingly hire illegal immigrants typically cause employers to lower wages. Consequently, millions of Mexican workers are diverted into an underground market where poor conditions and wages prevail. Furthermore, the report found that U.S. immigration law discourages employers from investing in their human capital. The incentive to educate or expand a worker's skill set is greatly reduced when employers run the risk of legal repercussion.
"Fix America's flawed immigration system so that it
conforms to a free society and an efficient economy."
-CATO Report
Real Security
Following the events of September 11, the immigration debate in America shifted from economic concerns to national security. While many opponents of immigration have used this tragedy to argue against legalization of Mexican migration, the connection between undocumented workers from Mexico and terrorism is tenuous. The author notes that, despite the concern for national security, no provisions for reducing immigration levels have ever been included in recent legislation. Mr. Griswold believes that Congress rightly understands that Mexican migration is not a threat to national security.
Indeed, legalizing and controlling the flow of workers across the U.S.-Mexican border would enhance our national security by bringing much of the underground labor market into the open, and encouraging newly documented migrants to cooperate with law enforcement. The author suggests that a system that allows Mexican immigrants to enter the country legally would free up thousands of personnel and save an estimated $3 billion a year; resources that could then be devoted to the war on terrorism.
Conclusion
As international cooperation increases between the United States and Mexico, it is evident that the dysfunctional U.S. immigration system is in direct conflict with economic reality and contemporary society. The lack of legal channels for migrant workers to find stable employment is having adverse effects on America's economic recovery. Mr. Griswold urges Congress to, "create an immigration system that is economic, humane and fair for all."
Endnotes
1Daniel T. Griswold, "Willing Workers: Fixing the Problem of Illegal Mexican Migration to the United States," CATO Institute, October 2002, p.1.
Copyright © 2002
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