Economic impact of immigration in the Rural Midwest Himar Hernandez Community Development Specialist Iowa State University Extension

Quick Facts 14.8% of the U.S. population is Hispanic 4.7% of Wisconsin’s population is Hispanic 1.4% in Green County – 1.2% in Lafayette County 7.3% of people in Wisconsin speak a different language other than English at home Hispanics are not new to Wisconsin. They first came as Migrant Seasonal Farm workers at the end on the 19th century

Quick Facts Wisconsin’s Latino population more than doubled between 1990 and 2000 80% of Latinos reside in Southeast Wisconsin 1.4% in Green County – 1.2% in Lafayette County 7.3% of people in Wisconsin speak a different language other than English at home Hispanics are not new to Wisconsin. They first came as Migrant Seasonal Farm workers at the end on the 19th century

Then vs. Now Migrants came to work for the season Migrant left after the season Immigrant moves to Wisconsin Immigrant stays in Wisconsin

Quick facts 42% of the Wisconsin Latino population is 18 years or younger. 23% of Wisconsin’s total population is under 18 years of age. 52% percent of Hispanic households in Wisconsin have children under 18 years of age. 35% of Wisconsin’s households have children under 18 years of age. 30% percent of Hispanics have high school or higher education. 85.1% of people in Wisconsin have high school or higher education

Hispanic households in Wisconsin, on average, contain… 3.1 persons 3.8 persons non-Hispanic households

Percent of Hispanic population that is under 18 year years of age 42% 23% of Wisconsin’s total population Is under 18

Initial expenses go up to accommodate influx What does this mean to the costs in our communities? Initial expenses go up to accommodate influx (ESL, some medical etc)

Investments, home purchases, taxes etc But some of these costs are mitigated by federal and state funds that come in Investments, home purchases, taxes etc

On the long run studies show that immigration overall benefits the local economy What is going on today? Rural communities have struggled due to the economic decline in the agriculture and in natural-resources

Brain drain (Over 60% of University of Iowa students are planning on leaving the Midwest once they graduate) Workforce continues to age Companies are not attracted to areas in which population continues to decrease Decline in the tax base

Why is there growth in the Midwest?

Why are the growth in the Midwest? corn prices NAFTA Farmers can’t compete with American corn Mexico; Migration Migration to rural places The Midwest faces large rural immigration

It is estimated that 95% of the immigrant Latino population in the midwest comes from rural areas (VERY RURAL) Nearly 97% previously lived in a big city in the United States and did not like it

Small businesses in Wisconsin US Census – 1% of the businesses are owned by Latinos in WI 6.8% of businesses owned by Latinos nationwide These businesses had sales receipts of $288 million dollars These businesses had a combined payroll of $54 million dollars

Small businesses and the downtowns 96% of the businesses are located in downtown areas Most businesses are family owned Most are started with family or friend’s money Most are not members of chambers

Small businesses phases 1st phase – Grocery stores and restaurants 2nd phase – Other services 3rd phase – Fully part of the local business networks

What is next in the immigration? Bigger influx from Africa More family related immigration vs. illegal More becoming US Citizens New groups will continue to bring their challenges and their benefits

Impacts - summary Initial costs are high Initial issues with diversity Will open businesses in downtowns and rural communities High purchasing power Most of the money stays in the community. Small percentage is wired to the countries.