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Abstract
This paper surveys a range of contemporary issues regarding illegal immigration in the United States, with a focus on the consequences of undocumented immigrants on the economy. The analysis looks at the effects of illegal immigration on jobs and wages in a dual labour market model and the fiscal impacts of illegal immigrants (taxes paid and costs imposed on society through use of public services). The paper argues that illegal immigration has a positive impact on the US economy; although illegal immigrants impose a fiscal cost at the state and local levels, this cost should be addressed by efficiently allocating resources between the federal and state governments.
Notes
1. Personal interview with Steven Camarota, 18 April 2006.
2. In looking at the composition of the illegal immigrant population, one can generally divide the population into two groups: those entering the labour market and those seeking refuge in the United States from persecution based on political or religious beliefs (for more, see Passel 2005).
3. Personal interview with Steven Camarota, 18 April 2006.
4. Personal interview, 28 March 2006. Daniel T. Griswold is Director of the Center for Trade Policy Studies at the Cato Institute in Washington, DC.
5. It is important to note that, while shielding may take place in the short term, maintenance of low-wage jobs generally hinders the development of high-wage jobs in the future.
6. Lau v. Nichols (1974) US Supreme Court Center. Online at www.justia.us/us/414/563/; Plyler v. Doe (1982) Oyez. Online at: www.oyez.org/oyez/resource/case/309/.
7. These seven states are: California, New York, New Jersey, Texas, Florida, Illinois and Arizona.
8. This includes income taxes, state sales, taxes and property taxes paid by undocumented immigrants.