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Economics of Immigration

The Fiscal Bottom Line on Immigration Reform

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

Immigration Reform and Job Growth

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: Wed, Feb 24, 2010 | Download File

Many Happy Returns: Remittances and their Impact

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. Read more...

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

The Economic Benefits of Immigration Reform

A new report, “Raising the Floor for American Workers: The Economic Benefits of Comprehensive Immigration Reform,” by Dr. Raul Hinojosa-Ojeda, finds that comprehensive immigration reform that includes a legalization program for unauthorized immigrants and enables a future flow of legal workers would result in a large economic benefit—a cumulative $1.5 trillion in added U.S. gross domestic product over 10 years. In stark contrast, a deportation-only policy would result in a loss of $2.6 trillion in GDP over 10 years.

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Published On: Mon, Jan 11, 2010 | Download File

Raising the Floor for American Workers

According to a new study by UCLA’s Dr. Raúl Hinojosa-Ojeda, Raising the Floor for American Workers: The Economic Benefits of Comprehensive Immigration Reform, legalizing undocumented workers through comprehensive immigration reform would yield $1.5 trillion to the U.S. GDP over a ten year period, generate billions in additional tax revenue and consumer spending and support hundreds of thousands of jobs. The report, which runs several different economic scenarios, finds that enacting a comprehensive immigration reform plan which creates a legalization process for undocumented workers and sets a flexible visa program dependent on U.S. labor demands not only raises the floor for all American workers, but is an economic necessity. Read more...

Published On: Thu, Jan 07, 2010 | Download File

The Immigration Policy Center's Top 10 Resources of 2009

As the year comes to a close, The Immigration Policy Center brings you its top 10 list of resources from 2009.  

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Published On: Fri, Dec 18, 2009 | Download File

Immigrant Workers Contribute in Large Metropolitan Areas

The Fiscal Policy Institute (FPI) recently released a report highlighting the contributions of immigrant workers in the 25 largest metropolitan areas in the U.S. FPI’s report broadens a growing understanding that immigrant workers make important economic contributions to the U.S. and to their local economies. Immigrants are likely to be of prime working age, work in occupations across the economic spectrum, and contribute robustly to economic growth in each of the 25 metropolitan areas studied and in the United States as a whole.

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Published On: Tue, Dec 01, 2009 | Download File

The Economic Blame Game: U.S. Unemployment is Not Caused by Immigration

Today, on Capitol Hill, Congressmen Steve King and Lamar Smith will host a forum on the impact of “illegal immigration on American jobs.” Panelists will likely attempt to draw a direct correlation between U.S. immigration policy and unemployment, just as they do with all other domestic issues including the environment, security and health care. As in the past, their solution is deportation, their tactic is division, their position is the status quo, and their plans neither help American workers or solve our immigration crisis. The Immigration Policy Center (IPC) has developed the following fact check to further debunk claims that U.S. unemployment is caused by immigration.

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Published On: Thu, Nov 19, 2009 | Download File

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.

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Published On: Thu, Nov 05, 2009 | Download File

Economic Progress via Legalization: Lessons from the Last Legalization Program

The data analyzed in IPC's latest Special Report, Economic Progress via Legalization, 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.

Published On: Thu, Nov 05, 2009 | Download File