In a recent article I covered research from Rice University that explored the economics of illegal migration. The research 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.”
It’s perhaps no surprise, therefore, that a second study, from UCLA, shows that it’s economically wrong to exclude undocumented residents from the stimulus payments metered out by the Trump administration during Covid-19.
Losing out
The research finds that omitting these families from the scheme could have a $10 billion impact on the economy, costing 82,000 jobs nationally. The study found that undocumented workers contributed over $1.6 trillion to the national GDP in 2018 through both their work and spending activities. As a result, their reduced spending power is both an economic and a public health crisis.
“Our undocumented neighbors buy groceries, pay taxes and support local businesses in economic activity that generates $190 billion in government revenue nationwide,” the researchers say. “It is cruel to deny undocumented residents financial assistance as unemployment rates skyrocket, but it’s also counterproductive fiscal policy that has negative consequences for all Americans who benefit from their economic contributions.”
The researchers highlight how the unemployment rate for undocumented workers soared to 29% in May, which is considerably higher than for any other demographic group in the country.
“Undocumented workers have suffered disproportionate health and economic impacts during this global health crisis that we are just beginning to understand yet they are being excluded from critical policy relief discussions and we need to address this through a comprehensive approach to economic recovery,” the researchers explain.
Economic benefits
The results clearly suggest that the economic benefits of ensuring that undocumented workers are fully included in any future relief efforts would strongly outweigh the costs associated with doing so.
Indeed, the researchers believe that including them in the HEROES Act would bolster some 112,000 jobs nationally and produce $14 billion in economic output. All for a ‘price tag’ of just $9.5 billion for including them in the stimulus plan.
“Undocumented workers are fundamental to our economy, especially during the pandemic when many of them are the essential workers who are keeping us fed, safe and healthy,” the researchers conclude. “It would be only fair to recognize their contributions by including them in recovery efforts, and it is also clear that we cannot rebound from this crisis if we leave them behind.”
