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Effects of Immigration on Economics

According to the Center for Immigration Studies, the immigrant population in the United States (legal and illegal) reached 37.9 million in 2007. There is a national debate over the economic consequences of hosting so many non-citizens.

    Taxes

  1. A 1995 report by the Cato Institute indicates that on average, immigrants pay substantially more in taxes than do U.S. natives. In 1975, native workers paid approximately $361 less than their foreign-born counterparts. (See references 2)
  2. Illegal Immigration

  3. Writing for a 2007 Council on Foreign Relations (CFR) report, Gordon H. Hanson of the University of California, San Diego asserted that the stemming of illegal immigration into the United States would likely cause a "net drain" on the American economy.
  4. Effects

  5. According to the CFR report, immigration increases the labor supply, thereby allowing capital, land and resources to be used more efficiently.
  6. Wages

  7. Between 1980 and 2000, immigrant workers caused an average decrease in wages of 3 percent among native workers. During this period, the wages of American workers without a high-school diploma decreased by nine percent.
  8. Total Impact

  9. The CFR report asserts that the economic impact of immigration upon the U.S. economy is modest, while acknowledging that immigrant labor, both legal and illegal, is necessary to the current U.S. economy.

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