Illegal Immigration - It's Impact on the US Economy

Alien workers have played a very important part of2007).
the U.S. economy and throughout its history. The topicLewis, on the other hand, believes that not everyone
of illegal immigration often irritates a lot of emotion andbenefits from immigration; there are both winners and
has recently geared a lot of attention in the press.losers (Lewis, 2007). Immigration's benefits derive from
Immigrants are having more of an impact on thereducing wages in the less-skilled jobs that immigrants
economy than ever before because of their largetake. Lewis concludes that average Americans will not
quantities in people. To many people, immigration issuesbe harmed by this; relatively few Americans work in
revolve around economic arguments, such as the factlow skilled jobs may be affected by this in which
that immigrants will take work away from nativeimmigration may reduce the earnings of some
workers at a much lower wage. With the foremostlow-skilled Americans (Lewis, 2007).
presence of illegal immigrant workers in the U.S.,Can the U.S. address and solve these problems with
economists agree that there are many burdens andillegal immigration?
blessings that come with immigration, but they have allTo address the problems of illegal immigrants entering
strained different conclusions in addressing thethe U.S., there are two realistic options: do nothing, or
following questions with regards to illegal immigration:establish a legal mechanism for migration. The U.S.
1. How do illegal immigrants benefit the U.S. economy?government orders strict border patrol and various
2. How do illegal immigrants damage the U.S.immigration enforcement actions every year. However
economy?economists believe that no matter what the total
3. Can the U.S. address and solve these problems withamount spent on immigration, without inclusive reforms,
illegal immigration?these problems will only grow worse. As Emerson
4. Can illegal immigrants eventually become full citizensreported in his article, "closing the border, and no
in the U.S.?significant guest worker program could result in
This review of the literature on illegal immigration andincreased wage rates under the assumption of
its impact on the U.S. economy focuses on these fourimmobile capital and no changes in production"
questions.(Emerson, 2007). However, there is considerable doubt
How do Illegal Immigrants Benefit the U.S. Economy?raised in the effectiveness of efforts to reduce the
In a perspective article, Davila (2006) insists thatflow of illegal workers across the border (Hanson,
immigration can indeed be good for businesses. TheRobertson, & Spilimbergo, 2002). When illegal
reason why it is good for businesses becauseimmigrants are willing to do anything and everything to
immigration supplies labor at a relatively lowcost,get an opportunity to enter the U.S., it is questionable
though the real concern is how often that immigrantsthat the use of fencing and other approaches will
are paid substandard wages (Davila, 2006). Althoughachieve an end to this because the economic
immigration can be good for businesses, majorpressures of illegal immigrants to enter the U.S. from
businesses "are, of course, concerned with hiringneighboring countries are just too great.
illegals, especially given the senate proposals, whichOn the other hand, doing nothing is always an option,
would place more emphasis on employers verifyingbut the approach goes against U.S. policy of having
that employees are legal immigrants" (Davila, 2006).laws. Organizing legal mechanisms for migration solves
However, many illegal immigrants bring hard work ethicthis process by removing workers with unknown
to the U.S, which businesses are often taking intoidentification and employers from a mere guessing
consideration to their open positions. Davila believesgame about the status of their employees. In any
that immigration should be perceived as a way tocase, research has shown that workers switching
improve our economy and use all possible resourcesfrom an illegal status to a legal status will command a
at our will. This improvement of our economy bringshigher wage, but this cannot be argued because
the hard work ethic of illegal immigrants that should beemployers are already risking a lot of money in taking
highly rewarded (Davila, 2006). In retrospect, thethe risk of hiring employees with an illegal work status.
conclusion of Davila is that it is important to continue toIllegal immigration is persistent because it has a strong
encourage those who want to come to the U.S. to doeconomic rationale. This is because low-skilled workers
so legally and continue to contribute to our economy.are increasingly scarce in the U.S. while they are still
Although it may to true that many illegal immigrants arevery abundant in Mexico and Central America.
motivated to bring its hard work ethic to the U.S., it isImpeding illegal immigration without creating other
however, uncertain that their authentic motivation is toopportunities for legal entry would conflict with market
tap into freely available resources. Enciro Marcelliforces that push labor from low-wage countries to the
believes that it is generally recognized that most illegalhigh-wage U.S. labor market.
immigrants are more motivated to enter the U.S. toCan illegal immigrants eventually become full citizens in
"build a better life for themselves and their families bythe U.S.?
securing a higher paying job" (Marcelli, 2005). ThereWith the trouble and cost of money trying to secure
exist many common claims by the U.S. legislation onthe border between Mexico and the United States, the
illegal immigration. Those includes: immigrations migratecase for amnesty has emerged onto the minds of
to the U.S. to use its welfare program and publicmany as an alternative way to solve the problem of
services and unauthorized immigrants take jobs awayimmigrants securing their place inside the U.S. But what
and depress the wages of, lower-skilled, minorityare some alternatives to letting illegal immigrants stay?
workers.Deporting millions? Creating punishments? In an article
In a study undertaken in the late 1980's by a team ofreported by Thornburgh, he believes that whether
University of Texas researchers using 1980 U.S.fining illegal aliens or putting them into schools, at the
Census data, they reported that although "legalend of the day, illegal immigrants would be allowed to
immigrants had a small negative effect on the wagesstay and become full citizens under the Senate
of U.S.-born white workers in the U.S. Southwest,compromise bill of Amnesty obstructed by Senator
undocumented Mexican immigrants actually had aJohn McCain (Thornburgh). McCain proposes that this
small positive effect" (Marcelli, 2005). During the samebill will be an amnesty but by "impose fines, fees and
time of the research done by the University of Texasother requirements as punishment" (Thornburgh). This
scholars, another group of researchers from thebill will be good for America because the estimated
University of Toledo in the early 1990s used the sametwelve million illegal immigrants prove to be
data. However, they investigated the impact ofnon-deportable. In the history of the previous amnesty
undocumented immigrants on the unemployment ofof 1986, offered a path to citizenship for three million
U.S.-born minority workers rather than the impact ofillegal immigrants.
undocumented immigrants on the employment ofThis amnesty ignited the larger wave of illegal
U.S.-born minority workers. They found an incredibleimmigration that followed soon afterwards. The '86
inverse relationship. This is because illegal immigrantsamnesty showed soon-to-be immigrants from around
as they concluded enjoy clustering in states wherethe world that the U.S. was weak-willed and would
unemployment rates were lower. The researcherseventually give citizenship to illegal immigrants. Soon
interpreted this finding as "suggestive of labor marketafter, Mexicans and other illegal immigrants hurricanes
complimentarily rather than substitution" (Marcelli, 2005).through the U.S. borders with no limitations. Studies
In rebuke, the conclusion of Marcelli suggests that illegalshow that this peak in migration depended less on
immigrants fill undesirable jobs only after morechanges in its policy and more on economic conditions
collectively groups of workers drift into higher payingbetween the U.S. and Mexico. Thornburgh suggests
occupations (Marcelli, 2005). This means there is nothat to solve down illegal immigration, "you could induce
loss in jobs as immigrants do not take jobs away froma recession in the U.S." (Thornburgh). He also proposes
currently employed citizens.that a better idea is to help Mexico to create more
In contrary to Marcelli with the issue related to thejobs that pay a better rate (Thornburgh).
extent to which illegal workers utilize more publicA recent Council on Foreign Relations study found that
services than their tax contributions, Moretti and Perloffwhen Mexican wages drop ten percent in comparison
(2000) "found that the participation in welfare programsto U.S. wages, there is a six percent increase in the
by illegal immigrant worker families was 8% in contrastattempts of illegal immigrants to cross the border
to 27%, 30%, and 42% for citizen, amnesty, and greenillegally (Thornburgh). This is an astonishing result in
card worker families, respectively" (Moretti &which shows how complex or corrupt the Mexican
Perloff, 2000). Although this research is sustainable toeconomy may be. While Mexico stabilizes itself, there
the validity of welfare programs, it did not take intois both political and technological influences to make
consideration the tax contributions with service usage.enforcement a serious part of a new amnesty plan.
Their analysis was not based on tax contributionsBy enforcing National ID cards, employer verification,
because "since most pertinent tax payments are viahigh-tech border controls, these all could aid in making
payroll deductions or sales tax collections, the generalsure that this would be the last amnesty of its
belief is that tax contributions vary little by legal status"generation.
(Moretti & Perloff, 2000). There analysis therefore,An angry outburst in immigration to the U.S. has raised
included all public services as well as public education.many concerns over what our immigration policy
With the conclusion of this analysis, it shows that illegalshould be. While the pro-immigrant supporters say
immigrants are actually contributing to public services"immigrants do jobs natives won't do" is overly stated,
as well as social security because not only are theyit is true that there are fewer Americans who work in
employees but they are also consumers who givesthe same field as low-skilled immigrants such as in
back to the community as well.agriculture. As a consequence to this fact, most
How do illegal immigrants detriment the U.S. economy?Americans benefit from immigration because it
While there are some that supports immigration, therereduces the wages of some low-earning American
are also many firm believers that immigration posesworkers who compete with immigrants for jobs. This is
problems to the U.S. economy. Zedillo believes thatnot a problem because U.S. labor markets are flexible
illegal immigration poses problems for the U.S. everyto absorb immigrants without depressing low-skilled
year "the size of the population living illegally in thisAmericans' earnings. One reason for this is that
country grows by as much as half a million people"employers are able to adapt their production methods
(Zedillo, 2007). He argues that company employersto the available work force, which goes well with their
who hire these illegal workers are also violatingability to adapt to changes in immigration policy. As
immigration laws because employers who hire illegalcongress again grapples with immigration acts and
workers also violate immigration laws when misled byamnesty, one would hope that it will pay off failures of
false documents (Zedillo, 2007). The reason why illegalthe past by creating a foundation that allows active
workers are often employed is because it makes itparticipation of legal workers in the U.S. economy.
easier for the employer and employee to escapeOtherwise, the U.S. is likely to find itself with even larger
paying taxes. Without paying taxes, Zedillo argues,illegal populations in the very near future.
illegal immigrants can become "a drain on socialReferences
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underclass and face a social conflict with U.S. citizensimmigration to the source countries. Population
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and for sustaining its pace in job creation" (Zedillo,