Economics of Immigration

As the debate over illegal immigration continues to rage, some pundits and policymakers are claiming that unauthorized immigrants do not pay taxes and rely heavily on government benefits.  Neither of these claims is borne out by the facts. Undocumented men have work force participation rates that are higher than other workers, and all undocumented immigrants are ineligible for most government services, but pay taxes as workers, consumers, and residents.

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Published On: Thu, Nov 01, 2007 | Download File

Tax Day would seem to be an appropriate time to inject some bottom-line reality into the long-running debate over whether or not immigrants in the United States “pay their own way” as taxpayers.   As with nearly all aspects of the immigration debate, the controversy over how immigrants impact the public treasury is far too often dominated by emotionally charged rhetoric rather than hard facts.  Many of these much-needed facts are provided in a forthcoming report from the Immigration Policy Center by Stephen Moore, Senior Economics Writer at the Wall Street Journal and former director of Fiscal Policy Studies at the Cato Institute, and Richard Vedder, Distinguished Professor of Economics at Ohio University.  Using data from the U.S. Census Bureau’s 2005 Current Population Survey and other sources, Moore and Vedder find that immigrants not only pay their own way in taxes, but play a hefty role in shoring up the teetering Social Security system, and provide a fiscal windfall to U.S. taxpayers by tending to come to the United States during their prime working years—after the costs of their education and upbringing have been borne by their home countries. Read more...

Published On: Sat, Apr 12, 2008 | Download File

While the U.S. government has poured billions upon billions of dollars into immigration enforcement, the number of undocumented immigrants in the United States has increased dramatically. Rather than reducing undocumented immigration, this enforcement-without-reform strategy has diverted the resources and attention of federal authorities to the pursuit of undocumented immigrants who are drawn here by the labor needs of our own economy.

Published On: Thu, May 22, 2008 | Download File

According to new estimates from the Pew Hispanic Center, the number of undocumented immigrants in the United States did not increase between 2007 and 2008, and may actually have fallen. These findings should come as no surprise given the current state of the economy.

Published On: Wed, Oct 01, 2008 | Download File

And Arbitrary Caps on H-1B Visas Still Don’t Meet that Need

It might seem that persistently high unemployment rates over the past few years have rendered moot the debate over whether or not the United States really “needs” the highly skilled foreign workers who come here on H-1B temporary visas.  But the demand for H-1B workers still far outstrips the current cap of only 65,000 new H-1B visas that can be issued each year.  In fact, from fiscal year 1997 to 2011, employers exhausted this quota before the fiscal year was over (except from 2001 to 2003, when the ceiling was temporarily increased).  As a number of studies make clear, the presence in a company of highly skilled foreign workers whose abilities and talents complement those of native-born workers actually creates new employment opportunities for American workers.  Yet the arbitrary numerical limits placed on H-1Bs are incapable of responding to the changing demand for H-1B workers.  This is unfortunate, given that the international competitiveness of the U.S. economy will continue to depend heavily on the contributions of H-1B professionals and other high-skilled workers from abroad for many decades to come. Read more...

Published On: Wed, Mar 30, 2011 | Download File

At a time of economic recession, high unemployment, and budget deficits, policymakers and the public are concerned about the impact of immigration—especially unauthorized immigration—on state and local economies.  In particular, there is debate over whether or not unauthorized immigrants are a drain on the budgets of state and local governments because of the public services they utilize.  Accurately assessing the costs and contributions of immigrants, particularly unauthorized immigrants, is a challenge, but research shows that roughly one-half of unauthorized immigrants pay federal and state income taxes, Social Security taxes, and Medicare taxes.  Moreover, all immigrants (legal and unauthorized) pay sales taxes (when they buy anything at a store, for instance) and property taxes (even if they rent housing).  Below is a survey of a number of state studies which have found that immigrants in general—and the unauthorized specifically—contribute to the public treasuries and economies of many states and localities.

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Published On: Tue, Aug 18, 2009 | Download File

The Political and Economic Power of Immigrants, Latinos, and Asians in the United States (Updated January 2012)

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Download the Fact Sheet (2010 Census Data)

Download the Previous Fact Sheet (2008 Census Data)

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Published On: Wed, Jan 11, 2012 | Download File

Now more than ever, Americans are seeking real solutions to our nation’s problems, and there is no better place to start than protecting our workers, raising wages, and getting our economy moving again.  Part of this massive effort must include workable answers to our critically important immigration problems.

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Published On: Wed, Apr 01, 2009 | Download File