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Economics of Immigration

Earned Legalization: Repairing our Broken Immigration System

We can expect every major piece of comprehensive reform legislation to tackle the issue of creating a legal status for the 11- 12 million undocumented immigrants residing in the United States.  Ultimately, most politicians and policy makers agree that practically, the U.S. cannot deport this population, and some kind of process for legalizing status is necessary.  However, there remains a temptation to create high penalties in exchange for a green card because many politicians want to ensure that people have paid the price for coming to the country illegally.  An overly punitive process, however, ultimately defeats the purpose of a legalization program because it will deter people from participating and potentially drive people further underground.  A successful legalization program combines measured penalties with clear and achievable goals that will get the maximum number of people into the system, identify the relatively few who do not belong here based on criminal activity,  and integrate those who can contribute their talents as quickly as possible. 

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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. Read more...

Published On: Thu, Nov 05, 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

Immigration Reform as Economic Stimulus

The public debate over immigration reform, which all too often devolves into emotional rhetoric, could use a healthy dose of economic realism. As Congress and the White House fulfill their recent pledges to craft immigration-reform legislation in the months ahead, they must ask themselves a fundamental question: can we afford any longer to pursue a deportation-only policy that ignores economic reality?

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

Assessing the Economic Impact of Immigration at the State and Local Level

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

A Conversation about the Economic Effects of Immigration on African Americans

Anti-immigrant groups have repeatedly tried to drive a wedge between African Americans and immigrants by capitalizing on the myth that immigrants take American jobs. In a new Perspectives piece for the Immigration Policy Center, Yale Professor Gerald Jaynes dispels the myth that immigrants take “black jobs” and instead suggests we find solutions on how to lift up all low-wage American workers.

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Published On: Tue, Jul 14, 2009 | Download File

Untying the Knot Series: Unemployment and Immigration

Untying the Knot (Part I of III): The Unemployment and Immigration Disconnect

With Congress once again poised to consider comprehensive immigration reform, a key question confronting lawmakers is to what extent immigration and unemployment are related. Opponents of immigration reform frequently argue that immigrants “take” jobs away from many native-born workers, especially during economic hard times. Yet an analysis of data from the U.S. Census Bureau clearly reveals that this is not the case. In fact, there is little apparent relationship between recent immigration and unemployment rates at the regional, state, or county level.

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Published On: Tue, May 19, 2009 | Download File

Immigration Reform Cited as an Economic Necessity and a Net Gain

The Immigration Policy Center (IPC) has culled the words of leading economists and numerous experts who agree that immigration reform is an economic necessity and a net gain to the U.S. economy.

Published On: Tue, Apr 28, 2009 | Download File

What Immigration Reform Could Mean for the U.S. Economy

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

From Denial to Acceptance: Effectively Regulating Immigration to the United States

U.S. immigration policy is based on denial. Most lawmakers in the United States have largely embraced the process of economic “globalization,” yet stubbornly refuse to acknowledge that increased migration, especially from developing nations to developed nations, is an integral and inevitable part of this process.

Published On: Sun, Mar 29, 2009 | Download File