The results of a discussion by panelists on the evidence for economic loss and job opportunity costs to black workers attributable to illegal immigration.

In the midst of public debate over immigration reform, the U.S. Commission on Civil Rights voted to examine the possible effects of illegal immigration on particularly vulnerable segments of the U.S. working population, specifically low-skill black workers. Since the april 4, 2008, briefing, the severe economic downturn has affected workers in general, and –if unemployment rates are any indication – has had an even more severe impact on low-skill workers. To help air important aspects of the debate, the commission invited experts who have published and spoken on this issue to weigh the relative effects of factors that influence black low-skill workers’ wages, job gains or losses and report conclusions to the Commission. The speakers discussed factors that included the economic costs to this particular group, fiscal costs to taxpayers of social services for low-skill workers, competing skill levels of affected workers, the economic gains of the U.S. economy as a whole from flexible,low-cost labor and what constitutes a fair comparison between legal and illegal workers and their job opportunities. The panelists addressed the following issues in response to Commissioners’questions: The consensus by panelists that there is a negative effect on wages of low-skill black workers and the range of negative effects; The importance of other factors contributing to low-skill black unemployment; Possible discrimination resulting from the use of ethnic networks; Benefits and costs to the U.S. economy from illegal immigration; Policy recommendations from panelists, including strict enforcement of existing immigration laws; Effect of capital flows, including those across and within national borders, that decrease the negative effects of immigration; Tradeoffs to employers between increasing their capital investment versus hiring more low-wage workers; The potential disruption to the economy and to low-wage workers and communities of abrupt economic changes resulting from enforcing immigration laws strictly; The sharp differences between the employment opportunities of low-skill black men and low-skill black women; The ethical and civil rights implications of using immigration to drive down low-skill wages. The Commission selected balanced panels that included Harry Holzer, professor of public policy at Georgetown University; Gordon H. Hanson, professor of economics at the University of California- San Diego; Julie Hotchkiss, research economist and policy advisor at the Federal Reserve Bank of Atlanta; Vernon Briggs, professor emeritus of labor economics at Cornell University; Gerald Jaynes, professor of economics and African American Studies at Yale University; Richard Nadler, president of Americas Majority Foundation; Carol Swain, professor of political science and law at Vanderbilt University; and Steven Camarota, director of research at the Center for Immigration Studies in Washington, DC.

In the midst of public debate over immigration reform, the U.S. Commission on Civil Rights voted to examine the possible effects of illegal immigration on particularly vulnerable segments of the U.S. working population, specifically low-skill black workers. Since the april 4, 2008, briefing, the severe economic downturn has affected workers in general, and –if unemployment rates are any indication – has had an even more severe impact on low-skill workers. To help air important aspects of the debate, the commission invited experts who have published and spoken on this issue to weigh the relative effects of factors that influence black low-skill workers’ wages, job gains or losses and report conclusions to the Commission. The speakers discussed factors that included the economic costs to this particular group, fiscal costs to taxpayers of social services for low-skill workers, competing skill levels of affected workers, the economic gains of the U.S. economy as a whole from flexible,low-cost labor and what constitutes a fair comparison between legal and illegal workers and their job opportunities. The panelists addressed the following issues in response to Commissioners’questions: The consensus by panelists that there is a negative effect on wages of low-skill black workers and the range of negative effects; The importance of other factors contributing to low-skill black unemployment; Possible discrimination resulting from the use of ethnic networks; Benefits and costs to the U.S. economy from illegal immigration; Policy recommendations from panelists, including strict enforcement of existing immigration laws; Effect of capital flows, including those across and within national borders, that decrease the negative effects of immigration; Tradeoffs to employers between increasing their capital investment versus hiring more low-wage workers; The potential disruption to the economy and to low-wage workers and communities of abrupt economic changes resulting from enforcing immigration laws strictly; The sharp differences between the employment opportunities of low-skill black men and low-skill black women; The ethical and civil rights implications of using immigration to drive down low-skill wages. The Commission selected balanced panels that included Harry Holzer, professor of public policy at Georgetown University; Gordon H. Hanson, professor of economics at the University of California- San Diego; Julie Hotchkiss, research economist and policy advisor at the Federal Reserve Bank of Atlanta; Vernon Briggs, professor emeritus of labor economics at Cornell University; Gerald Jaynes, professor of economics and African American Studies at Yale University; Richard Nadler, president of Americas Majority Foundation; Carol Swain, professor of political science and law at Vanderbilt University; and Steven Camarota, director of research at the Center for Immigration Studies in Washington, DC.

This book sheds light on one of the most controversial issues of the decade. It identifies the economic gains and losses from immigration--for the nation, states, and local areas--and provides a foundation for public discussion and policymaking. Three key questions are explored: What is the influence of immigration on the overall economy, especially national and regional labor markets? What are the overall effects of immigration on federal, state, and local government budgets? What effects will immigration have on the future size and makeup of the nation's population over the next 50 years? The New Americans examines what immigrants gain by coming to the United States and what they contribute to the country, the skills of immigrants and those of native-born Americans, the experiences of immigrant women and other groups, and much more. It offers examples of how to measure the impact of immigration on government revenues and expenditures--estimating one year's fiscal impact in California, New Jersey, and the United States and projecting the long-run fiscal effects on government revenues and expenditures. Also included is background information on immigration policies and practices and data on where immigrants come from, what they do in America, and how they will change the nation's social fabric in the decades to come.

The Economic and Fiscal Consequences of Immigration finds that the long-term impact of immigration on the wages and employment of native-born workers overall is very small, and that any negative impacts are most likely to be found for prior immigrants or native-born high school dropouts. First-generation immigrants are more costly to governments than are the native-born, but the second generation are among the strongest fiscal and economic contributors in the U.S. This report concludes that immigration has an overall positive impact on long-run economic growth in the U.S. More than 40 million people living in the United States were born in other countries, and almost an equal number have at least one foreign-born parent. Together, the first generation (foreign-born) and second generation (children of the foreign-born) comprise almost one in four Americans. It comes as little surprise, then, that many U.S. residents view immigration as a major policy issue facing the nation. Not only does immigration affect the environment in which everyone lives, learns, and works, but it also interacts with nearly every policy area of concern, from jobs and the economy, education, and health care, to federal, state, and local government budgets. The changing patterns of immigration and the evolving consequences for American society, institutions, and the economy continue to fuel public policy debate that plays out at the national, state, and local levels. The Economic and Fiscal Consequences of Immigration assesses the impact of dynamic immigration processes on economic and fiscal outcomes for the United States, a major destination of world population movements. This report will be a fundamental resource for policy makers and law makers at the federal, state, and local levels but extends to the general public, nongovernmental organizations, the business community, educational institutions, and the research community.