JOSE L CAMPOS YANET ESPINOZA SANJEEWA DEVANARAYANA

Good luck in your new homeland! Welcome to America!

When immigrants came to America, some people thought they were very brave. Other people thought the immigrants were very foolish.

INTRODUCTION Legal immigration Legal immigration Family reunification rules Family reunification rules Specific employment based quotas Specific employment based quotas refugees refugees Illegal immigration Illegal immigration By crossing the border without valid immigration documents; or By crossing the border without valid immigration documents; or By entering with a valid visa and then remaining in the country after their visas expire. By entering with a valid visa and then remaining in the country after their visas expire.

Immigration Today  U.S. Population Clock as of Oct 15, 2008  305,419,048 people living in the US (Apprx.)  37.5 million of them are immigrants. (Apprx.)  12 million of these immigrants lack legal status  9.7 million of these immigrants have a status other than citizen or  undocumented. Most are Lawful Permanent Residents  15.8 million of these immigrants are citizens  For the last 3 years the immigrant portion of the US has remained at 12%  Only 3.5% of the US population is undocumented

Where do they come from?

States of residence, 2006

Actual and Projected U.S. Population Increase Actual and Projected U.S.Actual and Projected U.S. Population Increase, 1960 to 2050

Main Arguments IL-LEGAL IMMIGRATION DOES HELP THE US ECONOMY Would you say that immigration helps the United States more than it hurts it, or immigration hurts the United States more than it helps it?

States with Most Undocumented Immigrants

Growth Rates,

Who is hurt by illegal immigration? Uneducated Americans Poor or lower class Americans U.S. tax payers

IMMIGRANT AND TAXES Immigrants pay income, property, sales, and taxes at the federal and state level In 2002, illegal immigrants added a net surplus of $463 billion to Social Security

Immigrants & Crime Immigrants lower crime rates 1 st generation immigrants 45% less likely to commit violence than 3 rd generation Americans. During 1990s when immigration highest, crime dropped the most –Los Angeles it dropped 45% Why: motivation to work, ambition and desire not to be deported

Immigrants and the US work force Illegal immigrants as a percentage of total employees : 24% of farm workers 20% of cooks 28% of drywall installers 36% of insulation workers

Share undocumented immigrant workers by industry Overall Proportion 4.9 Source: Pew Hispanic Center (2005) Priv. House holds Food mfg. Ag.Furniture mfg. Const.TextilesFood Svcs. Admin & Support HotelsOther mfg. Percent

Source: BLS (2006) Foreign-born share of employment by sector

Immigrants are more mobile, responsive to economic growth More likely come in good times, leave in bad times –Flexibility allows for faster economic growth, more efficient use of resources –Lower unemployment Some immigrant groups are even more mobile once here –Move to where the jobs are Fewer regional discrepancies in growth –Lower unemployment, regional convergence

Job-based green cards remain in short supply Source: Department of Homeland Security, Department of State

Skilled flows pro-cyclical Source: Department of Homeland Security H1-B petitions approved for initial employment Peak Post-recession

Percent Source: Pew Hispanic Center (2005) Immigrants work more Labor Force Participation: Men

Who benefits from l-Illegal immigration? You Big business U.S. economy Farm owners US Govt.

Effects of immigration on US Corporations Immigration has effects similar to trade –Greater specialization, efficiency –More choice, innovation Production Increases. Who benefits? US GDP increase Exports Increase –Consumers Prices of certain goods and services fall

What is your Opinion My fellow Legal Aliens? Do you believe that immigrants take away US jobs and Hurt the economy OR Immigrants takes the jobs that natives don’t want to do?

Negativeeffect of immigration in the U. S. economy

Immigration to the United States in the 20th Century * Excluding IRCA conversions Source: Immigration Naturalization Service Immigration to the United States in the 20th Century * Excluding IRCA conversions Source: Immigration Naturalization Service Thousands of legal immigrants

Negative Economic Impact of Immigration Facts: Immigrants have less educationImmigrants have less education Earn less than native U.S. citizensEarn less than native U.S. citizens Households headed by immigrants have more children compare to U.S. citizens.Households headed by immigrants have more children compare to U.S. citizens. The average Immigrants pays less in taxesThe average Immigrants pays less in taxes Receive more in social servicesReceive more in social services e.g. Cash public assistance in 1995 e.g. Cash public assistance in 1995 Immigrants Native U.S. citizens Immigrants Native U.S. citizens 5.8% 4.5% 5.8% 4.5%

Welfare assistanceWelfare assistance Source: Michael Fix and Jeffrey Passel, “ The Scope and Impact of Welfare Reform ’ s Immigrant Provisions, ” Discussion Papers, The Urban Institute, January 2002.

Immigrants reduce the wages of U.S. citizens August 2003 report by Pia M. Orrenius and Madeline Zavodny, researchers at the Federal Reserve Banks of Dallas and Atlanta Annual wages of low-skilled native workers are about 2.4% below where they would be otherwise as a result of the presence of immigrant workers.Annual wages of low-skilled native workers are about 2.4% below where they would be otherwise as a result of the presence of immigrant workers. Studies by Harvard economist George Borjas, an outspoken advocate of stronger immigration restrictions concludes that:  Between 1980 and 2000 immigration increase the labor supply of working men by 11%  Immigration reduced the average annual earning of native born-men by estimated $1,700 or 4%  and by 7.4% for native workers without a high school diploma.

How much do immigrants contribute to the overall economy? Source: Federal Reserve Bank of Dallas, “ U.S. Immigration and Economic Growth: Putting Policy on Hold, ” Southwest Economy Issue 6, November/December 2003, available online at (derived from data from the U.S. Census Bureau). The foreign-born make up only 11.3 percent of the U.S. population and 14 percent of the labor force.

Portion of employment growth in each job category attributed to foreign-born workers from 1996 to 2000 Source: Abraham T. Mosisa, “ The Role of Foreign-born Workers in the U.S. Economy," Monthly Labor Review, May 2002, pp. 4 – 14 Unauthorized immigrants: 19 % of farming working 17 % of cleaning occupation 12 % of construction workers 11 % food preparation 8 % production 4.3% unauthorized

Immigration creates costs The availability of low-cost immigrant labor may remove the incentive for employers to adopt new technologiesThe availability of low-cost immigrant labor may remove the incentive for employers to adopt new technologies As a border-county policymaker, Santa Cruz County supervisor Manuel Ruiz offered a unique perspective on the costs of immigration:As a border-county policymaker, Santa Cruz County supervisor Manuel Ruiz offered a unique perspective on the costs of immigration: Costs associated with illegal border crossings: Costs associated with illegal border crossings: - Autopsy and investigative costs when immigrants die - Autopsy and investigative costs when immigrants die (21 people died crossing the border into Santa Cruz County in (21 people died crossing the border into Santa Cruz County in 2007) 2007) - Incarceration, prosecution and defense costs associated with - Incarceration, prosecution and defense costs associated with prosecuting immigrants who commit crimes prosecuting immigrants who commit crimes The hospital in Santa Cruz County spent approximately $1 million in 2007 treating undocumented immigrants who were unable to payThe hospital in Santa Cruz County spent approximately $1 million in 2007 treating undocumented immigrants who were unable to pay

Cont… Cont… The impact of immigration on California is more negative because immigrant households in the state:The impact of immigration on California is more negative because immigrant households in the state: (a) are more numerous relative to the native population, (a) are more numerous relative to the native population, (b) have more children, causing them to make greater use of public education, (b) have more children, causing them to make greater use of public education, (c) and earn lower incomes, leading them to have lower tax payments and (c) and earn lower incomes, leading them to have lower tax payments and greater use of public assistance. (health care and other social services) greater use of public assistance. (health care and other social services) increase in the consumption of publicly provided goods and services, such as public schoolsincrease in the consumption of publicly provided goods and services, such as public schools

The US illegal immigration Other negative impact on government expenditures Education: Federation for American Immigration Reform (FAIR)Education: Federation for American Immigration Reform (FAIR) study shows that: study shows that: Unauthorized immigrant cost $3.2 billion Unauthorized immigrant cost $3.2 billion Native-born US citizen children of unauthorized immigrant cost Native-born US citizen children of unauthorized immigrant cost $4.5 billion $4.5 billion Healthcare (emergency medical service):Healthcare (emergency medical service): California Hospital Association spends approximately: California Hospital Association spends approximately: $500 million p/year on undocumented immigrants and $500 million p/year on undocumented immigrants and $300 million birth and prenatal care for children of $300 million birth and prenatal care for children of undocumented immigrants undocumented immigrants Prison costs:Prison costs: California Department of Corrections spend California Department of Corrections spend $730 million ( budget and get reimbursed for $730 million ( budget and get reimbursed for 10%-12% of this cost from Federal Government) 10%-12% of this cost from Federal Government)

Cont…. Cont…. The number of illegal immigrants in U.S. is estimated between 7 and 20 million.The number of illegal immigrants in U.S. is estimated between 7 and 20 million. Undocumented workers generally don't pay income taxes but do use schools and other government servicesUndocumented workers generally don't pay income taxes but do use schools and other government services Those who lack a high school diploma and teenagers looking for summer positions are finding it difficult to acquire employment due to competition from illegal immigrants.Those who lack a high school diploma and teenagers looking for summer positions are finding it difficult to acquire employment due to competition from illegal immigrants. Taxes: the failure of illegal immigrants to contribute to the tax pool, coupled with those who employ illegal immigrants and do not pay unemployment insurance, social security, medicare.Taxes: the failure of illegal immigrants to contribute to the tax pool, coupled with those who employ illegal immigrants and do not pay unemployment insurance, social security, medicare.

Cont….. Harvard's George Borjas says the average American's wealth is increased by less than 1 % because of illegal immigration.Harvard's George Borjas says the average American's wealth is increased by less than 1 % because of illegal immigration. Healthcare :Healthcare : No social security number No social security number No driver license No driver license Unemployment RatesUnemployment Rates Food Supplies:Food Supplies: the food supply needs are figured in the US based upon the census data the food supply needs are figured in the US based upon the census data Overall, low-skill workers -- regardless of their immigration status -- Dennis Hoffman, director of the Seidman Research Institute at the W. P. Carey School consume more in services than they pay in taxes. Overall, low-skill workers -- regardless of their immigration status -- Dennis Hoffman, director of the Seidman Research Institute at the W. P. Carey School consume more in services than they pay in taxes. Dennis Hoffman Dennis Hoffman

Conclusion Both sides there are winners and losers Depend in you situation –If you are owner of company, educated, customers you are in the winner situatition –If you are educated, low skill and other you are in the losing side

REFERENCE Pia M. Orrenius and Madeline Zavodny, “Does Immigration Affect Wages? A Look at Occupational-Level Evidence,” Federal Reserve Bank of Dallas Research Department, Working Paper 0302, August 2003.Pia M. Orrenius and Madeline Zavodny, “Does Immigration Affect Wages? A Look at Occupational-Level Evidence,” Federal Reserve Bank of Dallas Research Department, Working Paper 0302, August Problems-Do-Illegal-Immigrants-Cause.htmhttp:// Problems-Do-Illegal-Immigrants-Cause.htmhttp:// Problems-Do-Illegal-Immigrants-Cause.htmhttp:// Problems-Do-Illegal-Immigrants-Cause.htm lhttp://