The net benefits of illegal immigration.

A recent study (PDF) has the xenophobes in a dither. The Udall Center for Studies in Public Policy, at the University of Arizona, looked at the full balance sheet to see what immigrants put into the economy and what they take out. In particular they studied the impact of immigrants, mostly illegal, on the economic conditions in Arizona.

On a whole they found immigrants contributed more to the economy then they cost. No surprise there. Where the racists concentrate on only cost, this study also considered benefits. For instance, “non-citizen households” in Arizona had consumer spending, in 2004, of $4.41 billion. That created an estimated 28,000 full-time jobs. In addition that spending “generated tax revenues of approximately $318.6 million.

But then these illegals “steal jobs” as well. Supposedly “skilled” jobs according to the email I got. The Udall Center found that 14 percent of the Arizona workforce is made up of immigrants but they held a disproportionate number of “low-skilled” positions in agriculture, construction, manufacturing and some areas of the service industry. Almost 60 percent of agricultural workers were immigrants. About 22 percent of food preparers and servers were immigrants. About 35 to 41 percent of construction workers were immigrants. The same for 46 percent of textile workers, 51 percent of landscaping workers and 38 percent of maintenance workers.

There were some high skilled immigrants in particular professions but these were legal immigrants who are targeted by the US government for preferential treatment. So 19 percent of physicians in Arizona were immigrants, along with 36 astronomers and physicists and 16 computer hardware engineers. But, the typical “illegal immigrant” takes jobs that don’t pay as well and which, for the most part, are shunned by the native born.

I think one of the great absurdities in US immigration policy is that they ignore the need for people to mow lawns and sweep hallways. Working contributes to the economy of the state and the Udall Center found:

Non-citizens, for their part, contributed $28.9 billion, or eight percent of Arizona’s economic output, resulting in 278,000 full-time equivalent jobs. Their output included $10 billion in labor income, and $3.3 billion in other property income. The state tax revenues resulting from this economic activity were approximately $1.08 billion.

They also looked at what would happen if the illegal workers were removed from the workforce.

Agriculture: A fifteen percent workforce reduction in the agriculture sector would result in direct losses of 3,300 full-time-equivalent jobs, and losses of $600.9 million in output including lost labor income of $198.6 million, and lost other income of $116.1 million. The lost direct state tax revenue would be approximately $24.8 million. Construction: A fifteen percent workforce reduction in the construction sector would result in direct losses of 55,700 full-time-equivalent jobs, and $6.56 billion in output including lost labor income of $2.59 billion and $450.5 million in other lost income. The direct lost state tax revenue would be approximately $269.2 million. Manufacturing: A ten percent reduction in the manufacturing workforce would result in direct losses of 12,300 full-time-equivalent jobs, and $3.77 billion in output including lost labor income of $740.8 million, and lost other income of $286.1 million. The lost direct state tax revenue would be approximately $104.4 million. Service industries: In the service sectors analyzed, a sixteen percent reduction in the labor force would translate to direct losses of 54,000 full-time equivalent-jobs, and lost output of $2.48 billion including reduced labor income of $901.3 million, and reductions in other income of $273.0 million. The lost direct state tax revenue would be approximately $156.9 million.

I hope Governor Napolitano is realizing what a mistake she made pandering to the bigots.

The study concluded that the state of Arizona took in tax revenue of $1.64 billion from immigrant workers while the amount the state spent on immigrants was approximately $1.41 billion leaving a net benefit of $222.6 million to the state coffers. But that is only what they contribute to Arizona’s revenue. They also pay national income taxes and social security taxes. As Shikha Dalmia, a senior analyst at the Reason Foundation noted: “A stunning two-thirds of illegal immigrants pay Medicare, Social Security and personal income taxes.” And while they pay in, under US law they are forbidden to receive the benefits for which they pay. “The only services that illegals can still get are emergency medical care and K-12 education.” She writes:

What's more, aliens who are not self-employed have Social Security and Medicare taxes automatically withheld from their paychecks. Since undocumented workers have only fake numbers, they'll never be able to collect the benefits these taxes are meant to pay for. Last year, the revenues from these fake numbers — that the Social Security administration stashes in the “earnings suspense file” — added up to 10 percent of the Social Security surplus. The file is growing, on average, by more than $50 billion a year.