With borders largely shut as a result of the coronavirus, immigration has somewhat slipped from the agenda, but history suggests it won’t be long before it returns as a hot talking point. When this occurs, new research from Rice University provides some interesting insight, especially into the value of immigration, even if of the illegal kind.
It suggests that the economic gains from illegal immigration far outweigh the costs of the public services utilized. Indeed, for Texas alone, the state collects $1.21 in revenue for every $1 spent on providing public services to undocumented immigrants.
“Undocumented residents have a positive influence and impact on the economy, since they pay taxes and fees and constitute an important part of the labor market,” the researchers say. “Even if we consider the costs of undocumented immigrants to the state of Texas, the benefits outweigh the costs.”
Costs and benefits
The research, which focused primarily on Texas as it is both highly populous and has a considerable undocumented population, examined the impact of undocumented immigration throughout 2018. It’s a year in which the state had approximately 1.6 million such persons, which represents 5.7% of the total state population.
This group were often working in industries such agriculture, manufacturing, construction, and services, with unemployment believed to be just 5.7%. As a result of sales and consumer taxes, the paper suggests they contribute $2.4 billion to the state kitty.
“Like any other Texan, undocumented immigrants pay sales and excise taxes when they buy goods and services,” the researchers say. “They pay property taxes on their owned or rented houses. Other payments that undocumented immigrants make to the state are related to fees and fines, tuition and utilities.”
In total, the illegal immigrants in Texas cost around $2 billion in 2018, via education, healthcare and social services, including substance abuse services, immunizations, and incarceration-related costs. The costs also took into account those associated with policing the borders and deporting such people from the state. Even with all of this, the sums stacked up in favor of immigration.
“If all undocumented workers were deported, Texas would lose more than $41.9 billion in direct employment compensation, defined as pretax salary and wage earnings. The total lost would be $70.3 billion, which represents a reduction of 7.7% in state employment compensation,” the researchers say. “If even 20% of this group were deported, the state would lose approximately $8.4 billion in direct employee compensation, and the total impact would be $14 billion.”
In total, undocumented migrants provided a net benefit of $420.9 million to the state during the fiscal year of 2018, or $1.21 in revenue for every dollar the state spent on them. It’s rare for the immigration debate to have reason at its heart, but should it wish to have some evidence behind it, this study is a useful contribution.
