Does Immigration Benefit the U.S. Economy?

Contrary to critics of immigration, foreign-born workers are a net benefit to the U.S. economy.

The United States prides itself on being a nation of immigrants. Heightened concerns about terrorism and the impact of illegal immigration, however, have resulted in calls to curb immigration. This has raised questions about whether immigrants help or hinder the U.S. economy.

Expert Insight

According to research by the Federal Reserve Bank of Dallas, the U.S. economy would not have expanded at the rates it has without immigration.

Types

The bank reported that immigrants benefit the U.S. economy in three ways: by representing an increasing share of the work force, by taking jobs in regions with limited labor, and by taking jobs that native-born workers do not want.

Misconceptions

Some critics of immigration charge that immigrants, by accepting lower pay, reduce the wages of native-born workers. The Century Foundation, however, reported that while immigration reduces the wages of unskilled native workers, the impact on the U.S. work force as a whole is not significant.

Benefits

The foundation further reported that a typical immigrant worker contributes more in taxes than he or she received in government benefits over a lifetime. This includes federal, state and local benefits.

Considerations

Public policy measures to curb immigration, such as widespread deportations of illegal immigrants and limits on legal immigration, would be economically counterproductive, according to research cited by the Century Foundation.

References

• Federal Reserve Bank of Dallas: U.S. Immigration and Economic Growth
• Century Foundation: Immigration, Jobs and the American Economy

Resources

• Immigration Policy Center