Economics of Immigration

Many politicians who champion the deport-them-all approach to unauthorized immigrants have been relying upon a bloated and deeply distorted report issued by the Federation for American Immigration Reform (FAIR) in July 2010.  That report, The Fiscal Burden of Illegal Immigration on United States Taxpayers, is not a credible source of data, yet its numbers have been cited repeatedly in this year’s debates over immigration legislation in the states.  The report relies upon flawed and empirically baseless assumptions to inflate its estimate of the costs which unauthorized immigrants impose on federal, state, and local governments.  Much of what FAIR counts as the cost of unauthorized immigration is actually the cost of education and healthcare for U.S.-citizen children.  In fact, over half of FAIR’s cost estimate consists of educational and healthcare expenditures for the children of unauthorized immigrants, of whom nearly three-quarters are native-born U.S. citizens.  These native-born children are counted as a “cost” of illegal immigration if they are under 18, but as U.S. citizens if they are working, taxpaying adults.  In its rush to place a price tag on unauthorized immigrants, FAIR is unable to see that investing in children today pays off economically tomorrow.  FAIR also neglects to mention the enormous fiscal and economic costs that would be incurred by attempting to remove unauthorized immigrants from the United States.  As the negative impact of anti-immigrant legislation on the fiscal bottom-line becomes more apparent, many taxpayers may begin to see that the “costs” cited by FAIR do not tell the whole story. Read more...

Published On: Tue, Mar 29, 2011 | Download File

By Raúl Hinojosa-Ojeda, Ph.D.

Our national debate over urgently needed immigration reform is now careening through our state legislatures, city halls, and town councils due to political gridlock at the federal level. And nowhere is that debate more contentious than in Arizona, where in April of last year the state’s legislature sought to rid the state of undocumented immigrants with passage of S.B. 1070. The law is specifically designed to trigger a mass exodus of undocumented immigrants from the state by making “attrition through enforcement the public policy of all state and local government agencies in Arizona.”

The economic analysis in this report shows the S.B. 1070 approach would have devastating economic consequences if its goals were accomplished. When undocumented workers are taken out of the economy, the jobs they support through their labor, consumption, and tax payments disappear as well. Particularly during a time of profound economic uncertainty, the type of economic dislocation envisioned by S.B. 1070-type policies runs directly counter to the interests of our nation as we continue to struggle to distance ourselves from the ravages of the Great Recession.Read more...

Published On: Thu, Mar 24, 2011 | Download File

(Updated January 2012) - Immigrants are not the cause of unemployment in the United States. Empirical research has demonstrated repeatedly that there is no correlation between immigration and unemployment. In fact, immigrants—including the unauthorized—create jobs through their purchasing power and their entrepreneurship, buying goods and services from U.S. businesses and creating their own businesses, both of which sustain U.S. jobs. The presence of new immigrant workers and consumers in an area also spurs the expansion of businesses, which creates new jobs. In addition, immigrants and native-born workers are usually not competing in the same job markets because they tend to have different levels of education, work in different occupations, specialize in different tasks, and live in different places. Because they complement each other in the labor market rather than compete, immigrants increase the productivity—and the wages—of native-born workers. In the words of economist Giovanni Peri, “immigrants expand the U.S. economy’s productive capacity, stimulate investment, and promote specialization that in the long run boosts productivity,” and “there is no evidence that these effects take place at the expense of jobs for workers born in the United States.” Read more...

Published On: Fri, Jan 13, 2012 | Download File

Immigration Enforcement in a Time of Recession

Recent estimates from the Pew Hispanic Center indicate that the number of unauthorized immigrants in the United States has declined by roughly one million since 2007—bringing the total size of the unauthorized population to approximately 11.1 million.  Coming after the release of similar estimates by the Department of Homeland Security (DHS) in January, these figures have provoked considerable speculation as to how much of the decline is attributable to the current recession, and how much is the result of heightened immigration enforcement.  DHS, for instance, was quick to take credit for the drop, citing the money and manpower that have been poured into immigration enforcement by the Obama administration.  However, immigration researchers were just as quick to point out that unauthorized immigration has always responded to the state of the U.S. economy, and that the downward trend captured by both Pew and DHS matches up closely with the beginning of the recession in December 2007. Read more...

Published On: Thu, Sep 09, 2010 | Download File

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Published On: Tue, Apr 19, 2011

By Richard T. Herman and Robert L. Smith

The 2000 Census found that immigrants, while accounting for 12 percent of the population, made up nearly half of the all scientists and engineers with doctorate degrees. Nearly 70 percent of the men and women who entered the fields of science and engineering from 1995 to 2006 were immigrants. So it should come as no surprise that immigrants will help drive the green revolution. America's young scientists and engineers, especially the ones drawn to emerging industries like alternative energy, tend to speak with an accent. Yet, the connection between immigration and the development and commercialization of alternative energy technology is rarely discussed.

In IPC's lastest Perspective on Immigration piece, Richard T. Herman and Robert L. Smith explain how policymakers envision millions of new jobs as the nation pursues renewable energy sources, like wind and solar power, and hightlight the voices that warn that much of the clean-technology talent lies overseas, in nations that began pursuing alternative energy sources decades ago.

Published On: Wed, Jun 23, 2010 | Download File

The Costs of Enforcement-Only and the Benefits of Comprehensive Reform

Tax Day is an appropriate time to take stock of a few fiscal bottom lines about immigration enforcement and immigration reform.  The federal government spends billions of taxpayer dollars every year on border and interior enforcement measures intended to deter unauthorized immigration.  While these efforts have failed to solve the problem of unauthorized immigration, they have had a negative impact on American families, communities, and the economy.  Were the United States to adopt a different approach by implementing comprehensive immigration reform, the legalization of currently unauthorized immigrants alone would generate billions of dollars in additional tax revenue as their wages and tax contributions increase over time. 

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Published On: Tue, Apr 13, 2010 | Download File

Legalizing Unauthorized Immigrants Would Boost the U.S. Economy

With the U.S. unemployment rate hovering at 10%, some have questioned whether or not now is really the right time for comprehensive immigration reform that includes the creation of a pathway to legal status for unauthorized immigrants already living in the United States.  Underlying this uncertainty is the fear that native-born Americans will lose out on scarce jobs if currently unauthorized immigrants acquire legal status—despite the obvious fact that unauthorized immigrants are already here and in the labor force.  However, the best available evidence suggests that neither legal nor unauthorized immigration is the cause of high unemployment, and that the higher wages and purchasing power which formerly unauthorized immigrants would enjoy were they to receive legal status would sustain new jobs.  Read more...

Published On: Thu, Jan 20, 2011 | Download File

The Political and Economic Power of Immigrants, Latinos, and Asians in the Sunflower State (Updated April 2013)

Download the 2013 Infographic (2010 Version)

Download the Fact Sheet (Updated 2014)

Download the Previous Fact Sheet (From 2010)

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Published On: Tue, Jan 01, 2013 | Download File

By Kristin Johnson, Ph.D.

Millions of immigrants in the U.S. send billions of dollars in remittances to friends and family members in their home countries each year.  While it is easy to assume that this represents a huge loss for the U.S. economy, the relationship between remittances and the U.S. economy is much more complex than meets the eye. It’s true that remittances are an important source of income for immigrant-sending countries, but remittances are also a huge boost to U.S. exports and the U.S. economy. The following IPC Special Report reveals the economic benefits of remittances to both developing nations and the U.S. economy.

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Published On: Wed, Feb 10, 2010 | Download File