1

THE ECONOMIC BENEFITS OF

FIXING OUR BROKEN 

IMMIGRATION SYSTEM

Executive Office of the President

July 2013
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This report was prepared by the National Economic Council, the Domestic

Policy Council, the President’s Council of Economic Advisers and the Office

of Management and Budget
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The Economic Benefits of Fixing Our Broken Immigration System

“So if we're truly committed to strengthening our middle class and providing more ladders of opportunity 

to those who are willing to work hard to make it into the middle class, we've got to fix the system. We 

have to make sure that every business and every worker in America is playing by the same set of rules. 

We have to bring this shadow economy into the light so that everybody is held accountable — businesses 

for who they hire, and immigrants for getting on the right side of the law. That’s common sense. And 

that’s why we need comprehensive immigration reform.”

– President Barack Obama, January 29, 2013

America has always been a nation of immigrants, and throughout the nation’s history, immigrants 

from around the globe have kept our workforce vibrant, our businesses on the cutting edge, and 

helped to build the greatest economic engine in the world. However, America’s immigration 

system is broken and has not kept pace with changing times. Today, too many employers game 

the system by hiring undocumented workers and there are 11 million people living and working in 

the shadow economy. Neither is good for the economy or the country. It is time to fix our broken 

immigration system.

The President has made clear that Democrats, Republicans, and Independents in Congress should 

work together to enact commonsense immigration reform that includes proposals to continue to 

strengthen border security, create an earned path to citizenship for undocumented immigrants, 

hold employers accountable, and bring our legal immigration system into the 21

st century. Last 

month, the Senate passed historic legislation that is largely consistent with the President’s 

principles for commonsense immigration reform with a strong bipartisan vote. The Senate’s 

Border Security, Economic Opportunity and Immigration Modernization Act (S. 744) represents the 

best chance that our country has had in years to modernize our immigration system. The President

urges the House of Representatives to take action and move this bill or similar legislation forward,

PRESIDENT BARACK OBAMA DELIVERS REMARKS ON IMMIGRATIONREFORM IN THE EAST ROOM OF THE

WHITE HOUSE,JUNE 11, 2013.(OFFICIAL WHITE HOUSE PHOTO BY PETE SOUZA)
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and stands willing to work with all parties to make sure that commonsense immigration reform 

becomes a reality as soon as possible.

This report outlines the key benefits to the U.S. economy of passing commonsense immigration 

reform.

Specifically, the Senate’s bipartisan immigration reform bill:

I. Strengthens the overall economy and grows U.S. GDP: Independent studies affirm that 

commonsense immigration reform will increase economic growth. The Congressional Budget 

Office (CBO) estimated that enacting the Senate immigration reform bill will increase real GDP 

relative to current law projections by 3.3 percent in 2023 and 5.4 percent in 2033 – an increase 

of roughly $700 billion in 2023 and $1.4 trillion in 2033 in today’s dollars. A larger labor force; 

higher productivity and investment; and stronger technology, tourism, hospitality, agriculture, 

and housing industries are just some of the key ways that immigration reform strengthens the 

U.S. economy.

II. Fosters innovation and encourages more job creation and job growth in the U.S.: Evidence 

shows that immigrants are highly entrepreneurial. Immigration reform would streamline the 

process for highly-skilled and highly-educated workers to come to the U.S. and build 

businesses that create jobs for Americans. In addition, it encourages companies to locate, 

invest, and expand here in the U.S. Under the recently passed Senate legislation, 

entrepreneurial immigrants would be eligible for newly created temporary and permanent 

visas if they demonstrate that they have ideas that attract U.S. investment or revenue and 

establish businesses that create jobs.

III. Increases the productivity of workers and adds new protections for American workers: 

According to CBO and other independent studies, immigration reform will ultimately increase 

overall U.S. productivity, resulting in higher GDP and higher wages. Part of this gain in 

productivity comes from immigrants’ creating new inventions and companies, as well as from 

improvements in U.S. production processes. Bringing undocumented workers out of the 

shadows and into the legal economy also helps put a stop to practices that undercut wages 

and worsen working conditions for American workers. This bill also has provisions to protect 

U.S. workers and ensure that new worksite enforcement and border security measures deter 

future illegal immigration.

IV. Decreases budget deficits, balances out an aging population, and strengthens Social Security: 

The CBO found that the enacting Senate immigration reform bill will reduce the federal budget 

deficit by nearly $850 billion over the next 20 years. In addition, the independent Chief 

Actuary of the Social Security Administration (SSA) has found that immigration reform will 

improve the long-term financial standing of Social Security by adding younger workers to the 

U.S. workforce. The SSA Actuary estimates that the Senate’s immigration reform bill will add 

nearly $300 billion to the Social Security Trust Fund over the next decade and would improve 

Social Security’s finances over the long run, extending Social Security solvency by two years.
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I. Strengthening the U.S. Economy and Growing U.S. GDP

IMMIGRATIONREFORMWILL BOOSTU.S. ECONOMICGROWTH

 Commonsense immigration reform will lead to greater economic growth by adding more highdemand workers to the labor force, increasing capital investment and overall productivity, and 

leading to more entrepreneurs starting companies in the U.S.

 The bipartisan Senate bill will boost real GDP by 3.3 percent ($700 billion) in 2023 and by 5.4 

percent ($1.4 trillion) in 2033, according to CBO.

 This is enough to boost average annual GDP growth by a projected 0.3 percentage points over 

the next twenty years.

 Immigration reform will improve U.S. worker and capital productivity, thereby increasing wages 

for U.S. workers, leading to higher real wages in the long term.

 Technological advancements brought by immigrants, such as new inventions and

improvements in production processes, also will boost U.S. GDP for years to come.

 Immigration reform provides a boost to sagging labor force participation.

 New immigrants of working age are projected to participate in the labor force at a higher rate 

than native workers, increasing labor force participation rates.

 The bipartisan Senate bill will increase the labor force by 3.5 percent in 2023 and 5 percent in

2033, according to CBO.

Reforming our broken immigration system will help to grow the economy. According to CBO, 

commonsense immigration reform will lead to greater economic growth because it will add more 

high-demand workers to the labor force, increase capital investment and overall productivity, and 

lead to greater numbers of entrepreneurs starting companies in the U.S. CBO estimates that 

enacting the bipartisan Senate immigration bill, S. 744, will boost real GDP by 3.3 percent in 2023 

and by 5.4 percent in 2033 – an increase of roughly $700 billion in 2023 and $1.4 trillion in 2033 in 

today’s dollars.

1 This is enough to boost average annual projected GDP growth by 0.3 percentage 

points over the next twenty years.

1

The Congressional Budget Office. “The Economic Impact of S. 744, the Border Security, Economic Opportunity, and

Immigration Modernization Act.” June 18, 2013. http://www.cbo.gov/publication/44346.
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Analysis by former CBO Director and Chief Economist for President George W. Bush’s Council of 

Economic Advisers Douglas Holtz-Eakin also finds that immigration reform will raise the pace of 

economic growth. In a 2013 American Action Forum report, Holtz-Eakin examines U.S. 

demographic trends and concludes that immigration reform will increase both near-term 

economic growth and per capita GDP.

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CBO estimates that as a result of the Senate bill, immigrant workers would help increase the 

productivity of both labor and capital, leading to higher real wages in the long term. CBO also 

noted that technological advancements brought by immigrants, such as new inventions and 

improvementsin production processes, will boost U.S. GDP for years to come.

One crucial factor in GDP growth is labor force participation, rates of which are projected to 

decline in the U.S. as the baby boom generation retires. Commonsense immigration reform will 

significantly boost the national labor force participation rate. Not only will immigration reform 

increase the population of working-age adults, CBO and the Joint Committee on Taxation project 

that new immigrants of working age will participate in the labor force at a higher rate, on average, 

than native workers of working age. Enacting the Senate bill will increase the labor force by 6 

million workers, or 3.5 percent, in 2023, and 9 million, or 5 percent, in 2033.3 According to CBO, 

higher labor force participation will boost capital investment, which will lead to increased 

productivity and higher overall average wages.

The following sections explain in more detail how immigrants and the Senate bill in the Senate 

lead to more American jobs, better productivity and lower federal deficits.

2

Holtz-Eakin, Douglas. “Immigration Reform, Economic Growth and the Fiscal Challenge.” April 2013.

http://americanactionforum.org/sites/default/files/Immigration%20and%20the%20Economy%20and%20Budget.pdf.

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Congressional Budget Office (June 18, 2013).
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II. Fostering Innovation and Encouraging More Job Creation in the U.S.

IMMIGRATIONREFORMWILL ENCOURAGEMORE JOB CREATION

 Immigration reform helps U.S. companies attract the most talented workers.

 The bipartisan Senate bill makes meaningful improvements to the existing employment-based 

green card system and creates new provisions that strengthen the United States’ ability to 

attract and retain highly-skilled global talent

 Recent studies have shown that immigrants promote productivity and innovation, both 

directly and indirectly through positive spillover effects on native workers

 Immigration reform attracts entrepreneurs to the U.S. to start companies and create jobs.

 Immigrant-owned small businesses generated a total of $776 billion in receipts and employed 

an estimated 4.7 million people in 2007.

 Immigrants started 28 percent of all new U.S. businesses, despite accounting for only 13 

percent of the U.S. population in 2011.

 More than 40 percent of Fortune 500 companies were founded by immigrants or children of 

immigrants. These American companies represent 7 of the 10 most valuable brands globally, 

collectively employ more than 10 million people and generate annual revenue of $4.2 trillion.

 Immigration reform ensures our nations family-sponsored and employment-based immigration 

systems complement each other and contribute to economic growth.

 In choosing a country to move to, prospective immigrants envision a better life not only for 

themselves but also for their families.

 Immigration reform attracts investments in the U.S. economy.

 The bipartisan Senate bill reforms and makes permanent the EB-5 immigrant investor program 

that grants permanent resident status to foreigners who invest above a minimum threshold in 

new job-creating commercial enterprises in the United States.

 EB-5 investments have been responsible for the infusion of at least $6.8 billion of capital into 

the United States and the creation of at least 48,950 jobs for U.S. workers as of the end of 

fiscal year 2012.

Commonsense immigration reform would make it easier for highly-skilled and educated workers 

and business owners to come to and stay in the U.S. and create jobs, promote innovation, and 

boost productivity. The bipartisan Senate bill makes meaningful improvements to the existing 

employment-based green card system and creates new provisions that strengthen the United
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States’ ability to attract and retain highly-skilled global talent. This includes those who earn 

advanced degrees in science, technology, engineering, and math (STEM) fields from U.S. 

universities, and foreign-born entrepreneurs and investors who meet certain criteria.

Impact of Immigrants on Innovation and Worker Productivity

The bipartisan Senate bill eliminates the existing backlogs for employment-based green cards by 

exempting certain employment-based green cards from limitations on the overall number of such 

green cards issued each year and by eliminating restrictions on the number of immigrants from 

populous nations like India and China. It also exempts STEM PhD and Master’s graduates from the 

annual limitations on the amount of green cards available each year. This means, in effect, that 

STEM graduates with advanced degrees from U.S. colleges and universities and job offers in the 

U.S. will be able to attain green card status. Taken together, these employment-based green card 

provisions will boost overall U.S. competitiveness by attracting the world’s best and brightest 

students, employees, and inventors.

An expanding body of contemporary research highlights the contributions to innovation and 

growth made by immigrants in STEM fields, where development of world-class talent will be 

critical to America’s continued global leadership.

4

The 2010 National Survey of College Graduates, 

conducted by the National Science Foundation, found that over 60 percent foreign graduate 

students were enrolled in STEM fields. The study found that although immigrants represent 14 

percent of all employed college graduates, they account for 50 percent of PhDs working in math 

and computer science occupations.

5 Moreover, studies indicate that every foreign-born student 

with an advanced degree from a U.S. university who stays to work in a STEM field is associated 

with, on average, 2.6 jobs for American workers.

6

As described in the 2013 Economic Report of the President, recent studies have shown that 

immigrants promote productivity and innovation, both directly and indirectly through positive

spillover effects on native workers.

7

Researchers have found that immigrants establish patents at 

twice the rate of U.S.-born citizens.

8 While this largely reflects immigrants’ being more heavily 

represented in science, engineering, and other technical occupations, immigrants in those fields 

patent at an above average rate even when compared to other non-immigrant scientists and

4

Economic Report of the President. March 2013, p. 156. 

http://www.whitehouse.gov/sites/default/files/docs/erp2013/full_2013_economic_report_of_the_president.pdf.

5

National Science Foundation. National Center for Science and Engineering Statistics(NCSES). “Science and

Engineering Indicators 2012.” January 2012. http://www.nsf.gov/statistics/seind12/pdf/c02.pdf.

6

Zavodny, Madeline. American Enterprise Institute and the Partnership for a New American Economy. “Immigration 

and American Jobs.” December 2011. http://www.aei.org/article/society-and-culture/immigration/immigration-andamerican-jobs.

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Economic Report of the President (March 2013).

8

Hunt, Jennifer, and Marjolaine Gauthier-Loiselle. “How Much Does Immigration Boost Innovation?” Institute for the

Study of Labor (IZA). January 2009. http://ftp.iza.org/dp3921.pdf.
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engineers.

9 Additionally, immigrant college graduates are more likely than non-immigrants to 

have published a scholarly work, and those who had published were more likely to have published 

six or more scholarly works (6.8 percent of published immigrants compared to 3.6 percent of 

published native-born graduates).

10

Increases in high-skilled immigration also have spillover effects that increase the number of patent 

applications filed by non-immigrants. Jennifer Hunt and Marjolaine Gauthier-Loiselle used a 1940-

2000 state panel dataset to show an increase in patents per capita from 9 percent to 18 percent in 

response to a 1 percentage point increase in immigrant college graduates.

11 High-skilled immigrant 

students and workers exert a strong, positive impact—both directly and indirectly through 

spillover effects—on U.S. competitivenessin the global economy.

CBO conducted its own literature review to evaluate the economic impact of the bipartisan Senate 

bill. Its report concluded, “empirical research broadly suggests that an influx of immigrants, 

particularly highly skilled immigrants, would lead to increased innovation and task specialization. 

And those improvements in turn would increase economic output for any given supply of labor 

and capital stock.” From this, CBO determined that the bipartisan Senate bill would boost overall 

productivity by 0.7 percent in 2023 and by 1 percent in 2033, which would in turn boost GDP per 

capita, increase wages at all skill levels, and raise the return on investment—improvements that 

benefit all U.S. workers.12

Steve Case, chairman and CEO of Revolution LLC and co-founder of America Online, when 

testifying before the Senate Judiciary Committee earlier this year, concluded that “high-skilled 

immigrants have always been job creators, not job takers.” He explained, “our success as an 

entrepreneurial nation is going to be driven largely by our ability to attract and retain the best and 

brightest talent,” including those in high-demand STEM fields.

Supporting Entrepreneurshipthrough Commonsense Immigration Reform

The Senate bill also creates a new Startup or INVEST visa (“Investing in New Venture, 

Entrepreneurial Startups, and Technologies”). This will allow foreign entrepreneurs who attract a 

threshold level of financing from U.S. investors or revenue from U.S. customers to build their 

businesses in the U.S. by creating both temporary visa and permanent green card options for 

aspiring entrepreneurs. If their companies continue to succeed and create jobs for American 

workers, these entrepreneurs would be eligible for permanent resident status, and eventually 

citizenship. Estimates of the economic impact of these provisions vary; however, up to 50,000 jobs

9

Hunt and Gauthier-Loiselle (2009).

10

Hunt, Jennifer. "Which Immigrants Are Most Innovative and Entrepreneurial?Distinctions by Entry Visa." Journal of

Labor Economics. July 2011. http://www.nber.org/papers/w14920.pdf.

11

Hunt and Gauthier-Loiselle (2009).

12

The Congressional Budget Office. (June 18, 2013).
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could be created each year if all of the green cards established under the parameters of the bill are 

utilized.

13

Commonsense immigration reform will expand the type of entrepreneurship and young growing 

firms that disproportionately contribute to the dynamism of the economy. Many immigrants are 

highly entrepreneurial, starting new businesses that fuel job creation and contribute to economic 

dynamism and growth. A 2010 paper by economists from the University of Maryland and the U.S. 

Census Bureau found that startups created almost 3.5 million net non-farm jobs in 2005: the 

authors concluded that startups accounted for only 3 percent of employment but almost 20 

percent of gross job creation.

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A study by the Fiscal Policy Institute found that in 2007, immigrant-owned small businesses 

generated a total of $776 billion in receipts and employed an estimated 4.7 million people.

15

According to the 2012 Kauffman Index of Entrepreneurial Activity, immigrants were nearly twice as 

likely as U.S.-born citizens to start new businesses each month. The immigrant rate of 

entrepreneurship increased from 2005 to 2012, while the native-born rate has remained flat over 

the past 17 years. For immigrants, 490 out of 100,000 immigrants started a business each month, 

compared with 260 out of 100,000 people for the native-born.

16

In a 2012 report, the Partnership for a New American Economy found that in 2011, immigrants 

started 28 percent of all new U.S. businesses, despite accounting for only 12.9 percent of the U.S. 

population; by contrast, in 1996, only 15 percent of new U.S. businesses were founded by 

immigrants.

17 In the decade from 1990 to 2000, the number of immigrant small business owners 

grew by 540,000, accounting for 30 percent of the total growth in the number of people who own 

a small business over that period.

18

13

Based on the parameters of Border Security, Economic Opportunity, and Immigration Modernization Act of 2013. S.

744. 113th Congress.

14

Haltiwanger, John C., Ron S. Jarmin, and Javier Miranda. “Who Creates Jobs? Small vs. Large vs. Young.” NBER

Working Paper No. 16300. February, 2012. http://www.nber.org/papers/w16300.pdf?new_window=1.

15

Kallick, David D. “Immigrant Small Business Owners: A Significant and Growing Part of the Economy.” Fiscal Policy

Institute. 2012. http://fiscalpolicy.org/wp-content/uploads/2012/06/immigrant-small-business-owners-FPI20120614.pdf.

16

Fairlie, Robert. “Kauffman Index of Entrepreneurial Activity: 1996–2012.” The Ewing Marion Kauffman Foundation.

April, 2013. http://www.kauffman.org/uploadedFiles/KIEA_2013_report.pdf.

17

Partnership for a New American Economy (2012).

18

Kallick, David D. “Immigrant Small Business Owners: A Significant and Growing Part of the Economy.” Fiscal Policy

Institute. 2012. http://fiscalpolicy.org/wp-content/uploads/2012/06/immigrant-small-business-owners-FPI20120614.pdf.
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Immigrants’ contributions in the high-tech sector are especially striking, both in the number of 

businesses started and in the number of patents filed, as discussed above. In 2005, over 50 

percent of new tech startups in Silicon Valley—widely known as the international hub for 

technological development and innovation—had at least one immigrant founder.

19 One study 

notes that immigrants started 25 percent of all engineering and technology companies founded 

between 1995 and 2005.20

However, some new research suggests the U.S. is losing its competitive edge in retaining 

immigrant entrepreneurs. The Kauffman Foundation reports that the number of Silicon Valley 

startups with at least one immigrant co-founder fell by over 8 percent, from 52 percent for 

companies founded between 1995 and 2005, to 44 percent for companies founded between 2006 

and 2012. They attribute this notable drop to a “reverse brain drain,” wherein highly-skilled 

workers are leaving the U.S., and returning home or to other countries.21 The Senate bill’s 

increase of employment-based green cards, especially for STEM PhD and Master’s graduates, will

19 Wadhwa, Vivek, AnnaLee Saxenian, Ben Rissing, and Gary Gereffi. “America’s New Immigrant Entrepreneurs.” 

report by the Duke School of Engineering and the UC Berkeley School of Information. January 4, 2007. 

http://people.ischool.berkeley.edu/~anno/Papers/Americas_new_immigrant_entrepreneurs_I.pdf.

20 Wadhwa, Saxenian, Rissing, and Gereffi (2007).

21 Wadhwa, Saxenian, Rissing, and Gereffi (2007).
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provide highly skilled foreign students, employees, and inventors a greater opportunity to remain 

in the U.S. as permanent residents and eventually as U.S. citizens.

INVESTING IN AMERICA’SYOUTH AND THEWORKFORCEOF TOMORROW

The Senate immigration reform bill makes robust investments that will pay off in the future by 

investing in our nation’s youth. These investments will both build the pipeline of future workers 

equipped with science, technology, engineering, and math (STEM) skills at every stage, from 

kindergarten through college, and provide job and work-based training opportunities for young people 

in the hit hardest areas of the country.

In particular, the Senate bill creates a new STEM Education and Training Fund by applying fees on 

some employers who hire foreign workers through our legal immigration system. The fee revenue 

would be used for a broad range of K-12 STEM-related educational activities, STEM capacity-building 

at minority-serving institutions, and activities to equip Veterans with STEM skills. Funds would also be 

available for eligible entities to create college savings accounts to help low-income high school 

students afford and plan for their college education.

The Senate immigration bill also establishes a new $1.5 billion Youth Jobs Fund for low-income young 

Americans between the ages of 16 to 25. This program, which would be funded by adding a small 

surcharge on select visas, would allocate funding to States to provide summer and year-round 

employment opportunities for hundreds of thousands of economically disadvantaged youth.

While making these significant investments to equip our nation’s youth for the jobs of the future, the 

Senate bill also maintains existing investments that provide Americans currently in the labor force with 

support to move into more skilled and higher paying jobs. These programs, which are funded by fees 

on employers who hire temporary foreign workers through our legal immigration system, provide onthe-job training and many other programs that help place Americans, including the long-term 

unemployed, into skilled jobs in growth industries.

At the other end of the spectrum, immigrants have also created—and continue to build—many of 

the world’s largest and best-known companies. More than 40 percent of Fortune 500 companies 

were founded by immigrants or children of immigrants. These American companies, including 

Google, Disney, and Procter & Gamble, to name a few, represent 7 of the 10 most valuable brands 

globally. They collectively employ more than 10 million people worldwide and generate annual 

revenue of $4.2 trillion.

22

Increasing Investment Through Commonsense Immigration Reform

The bipartisan Senate bill reforms and makes permanent the EB-5 immigrant investor program 

that grants permanent resident status to foreigners who invest above a minimum threshold in new 

job-creating commercial enterprises in the United States. Since the program was created in 1990,

22

Partnership for a New American Economy, “The New American Fortune 500,” June 2011,

http://www.renewoureconomy.org/sites/all/themes/pnae/img/new-american-fortune-500-june-2011.pdf.
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EB-5 investments have been responsible for the infusion of at least $6.8 billion of capital into the

United States and the creation of at nearly 50,000 jobs for U.S. workers as of the end of fiscal year

2012. Under current law, immigrants must invest a minimum of $1,000,000 in a new or existing 

U.S. business or project, or a minimum of $500,000 if the business or project is located in a 

Targeted Employment Area (an area which, at the time of investment, is experiencing an 

unemployment rate of at least 150% of the national average) or a rural area. The investment must 

either create or preserve a minimum of 10 full time jobs for qualifying U.S. workers within two 

years.

The bipartisan Senate bill would increase the number of immigrant investor visas available each 

year through the aforementioned reforms to the employment-based immigration system, and add 

additional measures to encourage more investment in areas that are most in need of economic 

development. Overall, these reforms have the potential to support more than 140,000 jobs for 

American workers each year.

23 In short, immigration reform will attract more foreign investment 

to the U.S. that will catalyze economic development and create jobs.

Family-SponsoredImmigration as Supportfor Critical Workers

The prospect of family reunification has been a cornerstone of U.S. immigration policy throughout 

our nation’s history. The Senate bill reforms and begins to eliminate the backlog in the familysponsored immigration system by exempting immediate family members (spouses and unmarried 

children under the age of 21) of lawful permanent residents from the annual limitations on familysponsored green cards and by increasing the limit on the number of immigrants allowed each year 

from individual countries, including those nations with a high rate of immigration such as China, 

India, Mexico, and the Philippines. The Senate bill also excludes these same immediate family 

members from annual limitations on employment-based green cards, and removes annual country 

limitations altogether from this system.

Contrary to some assertions by opponents of immigration reform, our nation’s family-sponsored 

and employment-based immigration systems are equally important and complement each other in 

many ways. In choosing their new home, prospective immigrants envision a better life not only for 

themselves but also for their families. Using data arranged by year of arrival and country of origin, 

one study found a positive correlation between the fraction of immigrants sponsored by a sibling 

and average education levels of the immigrants. The data seem to support the notion that highly 

educated immigrants who arrive based on employment and occupational preference categories

then sponsor their siblings who are also highly educated.24

23

The exemptionsfor spouses and dependents on the worldwide cap will result in approximately 14,000 green cards 

being available each year for individual immigrant investors. Since the Senate bill maintains current law requirements 

that a minimum of 10 jobs must be created or preserved for each EB-5 investment, these reforms could support more 

than 140,000 jobs for American workers each year.

24

Duleep, Harriet O., and Mark C. Regets. 1996. “Family Unification, Siblings, and Skills.” In Immigrants and 

Immigration Policy: Individual Skills, Family Ties, and Group Identities, edited by Harriet Duleep and Phanindra 

Wunnava, pp. 219–44. Greenwich, CT: JAI Press.
13

Family-sponsored immigration has significant economic benefits, especially for long-term 

economic growth. According to the National Foundation for American Policy, family-sponsored 

immigration supports the establishment and operation of small businesses in the United States.

25

For example, Yahoo! Co-founder Jerry Yang came to the U.S. at age 10 with his family. It is also 

important to realize that immigrants who come through our humanitarian visa system fleeing 

persecution are also some of our greatest entrepreneurs. Take someone like Sergey Brin – his 

family fled the Soviet Union when he was a young boy. America welcomed Sergey and his family as 

refugees, and in return, he went onto co-found Google. The Senate bill also includes provisions 

that will strengthen existing humanitarian visa programs.

It is clear that a robust family-sponsored immigration system and generous humanitarian visa 

program are both critical for providing support to family members in the workforce and unleashing 

entrepreneurial activities, which ultimately is in the best interest of all Americans.

25

Anderson, Stuart. “Family Immigration: The Long Wait to Immigrate.” National Foundation for American Policy, 

Policy Brief. May 2010: 7. http://www.nfap.com/pdf/0505brief-family-immigration.pdf.
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III. Increasing the Productivity of U.S. Workers and Strengthening

Protections for American Workers

IMMIGRATIONREFORM PROTECT AMERICANWORKERS AND ENHANCEPRODUCTIVITY

 Immigrants complement the skills of native workers and enhance their productivity.

 Researchers have generally found that immigrants may mostly complement rather than 

substitute for these workers – and that increased immigration raises average wages of U.S.-

born workers and has little or no effect on wages even for low-skilled workers.

 Higher immigration increases U.S. workers’ productivity by contributing to technological

advancement — leading to rising average wages over the long term.

 CBO estimates that real wages will be 0.5 percent higher in 2033 – the equivalent to an 

additional $250 of income for the median American household.

 This is largely the result of the increases in productivity of both labor and capital, which CBO

estimates will increase total factor productivity by 0.7 percent in 2023 and 1 percent in 2033.

 Researchers have also found that immigrants increase the productivity of U.S. workers by 

complementing their skills.

 The bipartisan Senate reform bill provides a host of protections for American workers.

Specifically, the bill:

 Requires that employers must first recruit American workers before hiring high-skilled 

temporary foreign workers.

 Strengthens prohibitions against displacing American workers and requires that employers pay 

temporary workers fair market wages, which helps to prevent American workers from being 

undercut by cheaper sources of labor.

 Raises the “wage floor” for all workers—particularly in industries where large numbers of 

easily exploited, low-wage, unauthorized immigrants currently work.

 Increases employer accountability through the E-Verify system and a more transparent 

worksite, which holds employers accountable for knowingly hiring undocumented workers.

 Includes investments in border security that will deter future undocumented immigration.

Impact of Immigrants on Productivity and Wages

As discussed above, higher immigration increases U.S. workers’ productivity by contributing to

technological advancement. These increases in worker productivity mean higher wages, on
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average. Researchers have also found that immigrants increase the productivity of U.S. workers by 

complementing their skills.

The recent CBO analysis is clear that, in the long run, the Senate bill raises wages for all groups of 

workers by boosting productivity. Specifically, CBO estimates that real wages will be 0.5 percent 

higher in 2033 than projected under current law. In today’s terms, that would be equivalent to an 

additional $250 of income for the median American household. This is largely the result of the 

increases in productivity of both labor and capital: CBO estimatesthe Senate bill will increase total 

factor productivity by 0.7 percent in 2023 and 1 percent in 2033.

A number of careful studies have attempted to isolate the wage impact of immigration among 

native workers. In particular, economists have used a number of natural experiments – including 

Cuban immigration to Miami, immigration flows to California in the 1990s and 2000s, and 

immigration of Russian Jews to Israel in the 1990s – to study the effects of immigration on labor 

markets. They have generally found that increased immigration raises average wages of U.S.-born 

workers and has little or no effect on wages even for low-skilled workers, and may have positive 

effects. The logic behind the empirical finding that immigration has little impact on wages for U.S.-

born workers is that immigrants may mostly complement rather than substitute for these workers.

One of the most famous and well-regarded studies in this area is by David Card at the University of 

California-Berkeley. Using a natural experiment – the experience of the Miami labor market 

following the arrival of 125,000 Cuban immigrants between May and September 1980, which 

increased the labor force by 7 percent – Card evaluates the effect of unskilled immigration on the 

labor market opportunities of native workers.

26 Specifically, he compared the trends in Miami 

wages to similar cities across the country where this influx did not occur. He finds that a 7 percent 

increase in the Miami labor market of low-skilled immigrants had virtually no effect on the wage

rates or unemployment rate of low-skilled non-Cuban workers. His data analysis suggests a 

remarkably rapid absorption of the new immigrants into the Miami labor force with negligible 

effects on other groups. Average wages for natives rose by 0.6 percent and there was essentially 

no effect or even a small positive effect on wages of the least-educated workers. Economists 

Rachel Friedberg from Brown University and Jennifer Hunt from Rutgers have conducted similar 

studies and reached similar results to Card.

27

Other recent studies also have found that immigration can indeed have positive effects on native 

wages. For example, Giovanni Peri studies immigration to California over the 1990 to 2004 period. 

Although he finds negative effects on the wages of other recent immigrants, he finds positive

26

Card, David. “The Impact of the Mariel Boatlift on the Miami Labor Market.” Industrial and Labor Relations Review.

January 1990. http://davidcard.berkeley.edu/papers/mariel-impact.pdf.

27

Friedberg, Rachel. “The Impact of Mass Migration on the Israeli Labor Market.” Quarterly Journal of Economics.

2001. http://qje.oxfordjournals.org/content/116/4/1373.full.pdf+html; Hunt, Jennifer. “The Impact of the 1962

Repatriatesfrom Algeria on the French Labor Market.” Industrial & Labor Relations Review. April 1992.

http://www.jstor.org/stable/2524278.
16

wage effects for native workers.

28 Peri’s most conservative estimate finds immigration yields a net 

wage benefit to natives of 2.2 percent on average; his study’s median estimate finds that 

immigrantsspurred wage growth of native U.S. workers by approximately 4 percent.

One reason that immigrants would not reduce the wages of native workers, and may even

increase wages, is that they are not perfect substitutes for American workers. The most commonly 

cited study that supports the view that immigrants reduce wages is by George Borjas

29

, whose 

research method assumes that immigrants and natives are substitutes for one another. He looks at 

inflows of immigrants across different schooling levels over time and compares those changes in 

inflows to changes in the wages of similarly educated natives. However, if immigrants and natives 

of similar schooling levels are not substitutable, as much of the research suggests, then Borjas’

research overstates the negative impact on wages. Additionally, if other factors are also acting to 

decrease wages for low-skilled native workers, such as technological changes and the decrease of 

unionized workplaces, then the negative effects may also be overstated.

As previously mentioned, there is a growing body of recent research that suggests that the skills 

and talents that immigrants and natives bring to the labor market may not be good substitutes for 

each other, and that low-skilled immigrants may instead enhance the productivity of even lowskilled natives. As Cato Institute scholar Daniel Griswold noted in 2011 testimony before the 

House Judiciary Committee, “[I]mmigrants tend to bring a different set of skills and differing 

preferences for the kind of work they perform compared to native-born workers, which means 

immigrants are less easily substituted for their native-born counterparts.”

30 In particular, rather

than replacing U.S. workers or reducing U.S. workers’ wages, increases in the number of new 

immigrants lead U.S. workers to specialize in tasks requiring stronger English language and other 

skills, raising their earnings.

31 One recent Immigration Policy Center study on the impact of recent 

immigrants in the U.S. labor force evaluated U.S. Census data and found that “there is little 

apparent relationship between recent immigration and unemployment rates among African 

Americans, or any other native‐born racial/ethnic group, at the state or metropolitan level.”

32

28

Peri, Giovanni. “Immigrants Complementarities and Native Wages: Evidence from California.” NBER Working Paper

12956. March 2007. http://www.nber.org/papers/w12956.

29

Borjas, George. “The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the 

Labor Market.” The Quarterly Journal of Economics. November 2003. 

http://www.hks.harvard.edu/fs/gborjas/publications/journal/QJE2003.pdf.

30

Griswold, Daniel. “ICE Worksite Enforcement – Up to the Job?” Testimony before the House Committee on the 

Judiciary Subcommittee on Immigration Policy and Enforcement. January 26, 2011. 

http://judiciary.house.gov/hearings/pdf/Griswold01262011.pdf.

31

Peri, Giovanni, and Chad Sparber. “Task Specialization, Immigration, and Wages.” American Economic Journal:

Applied Economics. 2009.

32

Immigration Policy Center. “Immigration and Native-Born Unemployment across Racial/Ethnic Groups: Untying the

Knot, Part II of II.” May 2009. www.immigrationpolicy.org/sites/default/files/docs/Part%202%20-

%20Unemployment%20Race%20Disconnect%2005-19-09.pdf.
17

In its economic analysis of the bipartisan Senate bill, CBO found that in the short-run, wages for 

some groups of workers will increase modestly while wages for other groups could fall modestly 

under the Senate bill, and predicted a small and temporary negative adjustment in the overall 

average wage. But as CBO explains, its analysis does not separately consider the effects on U.S. 

and foreign-born workers – meaning that this “do[es] not necessarily imply that current U.S. 

residents would be worse off.” In fact, as CBO notes, the temporary reduction in average wages is 

at least partly attributable to an increase in lower-wage immigrants: because new immigrants 

would, on average, earn lower wages than the current workforce, their entry into the labor force 

would reduce the overall average wage to a small degree. Additionally, as noted above, CBO finds 

that over the long run – once productivity gains and higher capital levels materialize – all skill 

groups would see higher wages as a result of enacting the Senate bill, with real wages rising by the 

equivalent of $250 annually for the median household, in today’s dollars.

Commonsense immigration reform will also increase wages and productivity for immigrants 

themselves. One reason that people seek to immigrate to the United States is that they can earn 

higher wages working in the U.S. than in their home countries. They also have greater 

opportunities to start businesses and pursue an education. Moreover, by providing a path to 

earned citizenship, the Senate bill will also give undocumented immigrants the security they need 

to invest in their own skills and education and to change employers or jobs in pursuit of higherpaying employment, or to stand up for their legal rights if they are paid substandard wages. 

Studies of the 1986 immigration reform law found that legalizing immigrants saw wage gains in the 

range of 10 percent as a result of obtaining legal status. Part of this increase reflected increases in 

workers’ productivity, which benefitsthe economy as a whole.

33

Protections for American Workers

The Senate’s immigration bill includes additional protections for American workers that help 

ensure immigrants will complement the American workforce and make our economy more 

productive and competitive. One critical protection is the requirement that employers first recruit 

American workers before hiring high-skilled temporary foreign workers. At the same time, the bill 

strengthens prohibitions against displacing American workers and requires that employers pay fair 

market wages to temporary workers, which helps to prevent American workers from being 

undercut by cheaper labor. The Department of Labor would also receive new tools and abilities to 

crack down on employers who fail to comply with the law.

These new safeguards advance the effort to ensure that highly-skilled temporary immigrant 

workers do not take jobs from equally qualified U.S. workers. Instead, temporary workers would 

be able to help fill critical skills gaps in the U.S. economy, making American businesses more 

productive and competitive at home and abroad.

33

See for example, Sherrie A. Kossoudji and Deborah Cobb-Clark. “Coming Out of the Shadows: Learning about Legal

Status and Wagesfrom the Legalized Population.” Journal of Labor Economics. July 2002.
18

The Senate bill also introduces additional measures in temporary worker programs to provide 

immigrant workers with increased mobility and key labor protections so that they are not taken 

advantage of by unscrupulous employers. A 2010 Center for American Progress study found that 

“the wages of native-born workers also increase under the comprehensive immigration reform 

scenario because the ‘wage floor’ rises for all workers—particularly in industries where large 

numbers of easily exploited, low-wage, unauthorized immigrants currently work.”

34

Creating a pathway to earned citizenship — in and of itself — will raise the workplace standards 

for all workers. When immigrants enjoy the same workplace protections and economic mobility as 

others, they will be less subject to exploitation at the hands of employers whose practices 

undermine the wages and working conditions of all other workers. The bipartisan Senate bill 

protects vulnerable immigrant workers from exploitation through strong new prohibitions against 

labor recruiting and trafficking abuses. And the bill also ensures that all workers have access to 

the same labor and employment protections regardless of immigration status, so some employers 

cannot seek out undocumented workers for the purposes of paying lower wages and benefits. For 

example, under the bill, if an employer hires an undocumented worker and commits a labor 

violation, not only is that employer subject to higher penalties, but the worker can temporarily 

stay in the country if he or she agrees to work with the government to investigate the employer. 

These provisions will protect American workers by removing incentives to seek out and hire 

undocumented workers.

Immigration reform also makes it easier for employers to comply with the law and deters future 

undocumented immigration. Commonsense measures, such as mandating that every employer in 

the country use E-Verify, an electronic employment verification system to ensure that the workers 

they hire are in the U.S. legally and authorized to work, both establish a more transparent worksite 

and help to hold employers accountable for knowingly hiring undocumented workers. This will 

protect businesses that play by the rules and invest in American workers. Additionally, increased 

investments in border security, on top of the historic investments already made by the 

Administration over the past four years, will also deter future undocumented immigration. 

Combined, these efforts will allow more Americans and legal immigrants to secure well paying, 

middle class jobs, and ensure that U.S. companies continue to the have access to the most 

talented workforce in the world.

Unleashing Immigrants’ Full Economic Potential

Commonsense immigration reform would improve productivity and boost economic growth by 

increasing various types of investment, including investments not currently made by 

undocumented workers.

34

The Center for American Progress. “Raising the Floor for American Workers: The Economic Benefits of 

Comprehensive Immigration Reform.” January 2010. http://www.americanprogress.org/wpcontent/uploads/2012/09/immigrationeconreport3.pdf.
19

Investment takes place when one expends resources today, whether in the form of time or money, 

in the expectation of a greater return in the future. Education is a form of investment. Of course, 

students do not typically earn much while in school, but they pursue higher education expecting 

that, in the future, they will earn a higher return, or a better living, as a result. Putting time or 

money into starting a business is another form of investment. New businesses rarely earn 

significant revenue in their first year or two, but their owners press on, expecting the enterprise to 

grow and generate profits over time. As with entrepreneurship, it is this type of investment and 

risk-taking that has made the American economy as strong as it is today.

When individuals are insecure and uncertain about their position in the economy — whether they 

are living in the shadows, afraid to enforce basic rights, or unsure if they will be able to stay in the 

U.S.— their incentives and ability to make such investments is undermined. Individuals may be less 

inclined to save or invest money today, or to spend on education now, if they doubt that they will 

be able to enjoy the benefits of such investmentsin the future.

This is another reason why immigration reform is so important for the economy. When workers 

avoid investing due to uncertainty about their future, it decreases capital available for all 

Americans. When immigrants feel they can’t invest in their own education or in the education of 

their children, it hurts the quality of our workforce.

On a related note, research tells us that children whose parents obtain legal status do better in 

school are more likely to stay in school than children whose parents are undocumented.

35 An 

estimated 80 percent of children with one or more undocumented parents are already US citizens, 

and the vast majority of these children will be in the US for the rest of their lives.

36 Enacting 

bipartisan immigration reform and providing the chance for their parents to come out of the 

shadows could mean significantly better outcomes for our children, strengthening our future 

workforce and contributing more to economic growth.

The bipartisan Senate bill would offer a tough but fair pathway for earned citizenship to the 11 

million undocumented workers living and working in our communities—a pathway that requires 

passing background checks, learning English, paying taxes and a penalty, and then going to the 

back of the line behind everyone who’s playing by the rules and trying to come here legally. It also 

provides farmworkers, who help harvest our nation’s fruits and vegetables, with a unique pathway 

to earned citizenship, if they continue to contribute to the agriculture industry. Finally, the Senate 

bill would provide an expedited path to permanent status for young people known as DREAMers

35

See Frank D. Bean, Mark A. Leach, Susan K. Brown, and James Bachmeier. “Mexican Immigrant Legalization and 

Naturalization and Children’s Economic Well-Being.” In: Helping Young Refugees and Immigrants Succeed (eds. Gerhard

Sonnert and Gerald Holton), Palgrave Macmillan, New York, 2010; and Ying Pan. “Gains from Legality: Parents 

Immigration Status and Children’s Scholastic Achievement.” Working Paper No. 2011–05, Department of Economics, 

Louisiana State University, 2011, http://bus.lsu.edu/McMillin/Working_Papers/pap11_05.pdf

36

Passell, Jeffrey S. and D’Vera Cohen. 2010. Unauthorized Immigrant Population: National and State Trends, 2010. 

Washington, DC: Pew Hispanic Center, February. http://www.pewhispanic.org/files/reports/133.pdf
20

-those who were brought to the U.S. as children and grew up pledging allegiance to our flag and 

are either attending college or have served honorably in the U.S. military.
21

IV. Decreasing Budget Deficits, Balancing Out an Aging Population, and

Strengthening Social Security

IMMIGRATIONWILL CUT THEDEFICIT AND STRENGTHENSOCIAL SECURITY

 Immigration reform improves the short- and long-term federal budget outlook

 The additional taxes paid by new and legalizing immigrants would not only offset any new 

spending, but would be substantial enough to reduce the deficit over the 20-year window.

 Over the twenty years between 2014 and 2033, the Senate bill would reduce federal deficits 

by nearly $850 billion.

 Immigration reform helps balance out an aging population and shore up U.S. social insurance 

programs

 Because most immigrants are young, additional immigration helps balance out the increase in 

retirees-per-worker that will occur as the Baby Boomer generation retires, and thus provide 

essential financial support for U.S. social insurance programs.

 Enacting the Senate immigration reform bill will add nearly $300 billion to the Social Security 

Trust Fund over the next decade—reducing the Social Security shortfall by nearly half a trillion 

dollars over the next 75 years (0.21 percent of taxable payroll), and extending the life of the 

Trust Fund by two years.

 Immigrants contribute more to the Medicare Trust Fund then they collect in benefits, 

according to one study.

Impact of Commonsense Immigration Reform on Budget Deficits and Debt

Along with growing our economy through increases in productivity and more entrepreneurship 

and innovation, commonsense immigration reform will reduce federal deficits and strengthen 

Social Security by balancing out an aging population. On net, the Senate-passed bill would reduce 

federal budget deficits by $158 billion and increase real U.S. GDP by 3.3 percent by 2023. By 2033, 

CBO estimates that immigration reform will lead to even bigger reductions in federal deficits: in 

the second decade after enactment, from 2024-2033, the Senate bill would achieve about $700 

billion in net deficit reduction. Therefore, over the twenty years between 2014 and 2033, the 

Senate bill would reduce federal deficits by nearly $850 billion.

The CBO analysis made clear that the additional taxes paid by new and legalizing immigrants 

would not only offset any new spending, but would be substantial enough to reduce the deficit 

over the 20-year window. As CBO explains, a significant portion of the new taxes would be paid by 

previously undocumented immigrants who could earn legal status over time. While many of these
22

workers already pay federal taxes, millions more will pay payroll taxes once they are able to obtain 

legal status and work above board.

37

The resulting deficit reduction will also help to reduce our debt as a share of the economy. 

Economists and budget experts agree that our fiscal goals should include putting our debt on a 

declining path as a share of our economy. The bipartisan Senate bill helps us toward our goal of 

fiscal sustainability: looking at CBO’s official estimate of the deficit reduction resulting from the 

Senate immigration reform bill together with CBO’s analysis of the impact of the Senate bill on 

GDP growth, the Senate bill would reduce the federal debt as a share of the economy by three 

percentage points in 2023, relative to current law. And based on further analysis of the CBO 

estimates, by 2033, enacting the Senate bill would reduce federal debt by seven percentage 

points, as a share of the economy compared to current law.

The CBO score reflects the direct impact of immigration reform on the U.S. population, 

employment, and taxable compensation, and CBO also notes that immigration reform will 

significantly impact the economy in ways beyond direct changes in the workforce.

38 Immigration

37

The Congressional Budget Office (June 18, 2013) and “S. 744, Border Security, Economic Opportunity, and 

Immigration Modernization Act: As Passed by the Senate on June 27, 2013.” July 2013, 

http://cbo.gov/publication/44397.

38

The Congressional Budget Office (June 18, 2013).
23

reform is expected to bolster the U.S. economy by increasing productivity, driving up overall 

wages, and boosting the return on investment. Although indirect feedback effects are 

(appropriately) not incorporated in CBO’s official budget estimates, CBO noted that these 

estimated changes in productivity, wages, and investment from the Senate bill would likely reduce 

the deficit by an additional $300 billion between 2024 and 2033, on top of the approximately $850 

billion in deficit reduction included in the official CBO score.

Impact of Commonsense Immigration Reform on Social Security

Immigration reform will also help secure the financial future of Social Security by increasing

immigrants’ contributions to the Social Security Trust Fund through payroll taxes.

The independent Office of the Chief Actuary at the Social Security Administration (SSA) reported 

that enacting the bipartisan Senate immigration reform bill will strengthen Social Security over the 

long term and extend the life of the Trust Fund by two years, from 2033 to 2035.

39 According to 

the SSA Actuary, commonsense immigration reform would add nearly $300 billion to the Social 

Security Trust Fund over the next decade and reduce the Social Security shortfall by nearly half a 

trillion dollars over the next 75 years in present value terms (equivalent to 0.21 percent of taxable 

payroll). The reduction in the shortfall is enough of an improvement to nearly reverse the 

deterioration in Social Security’s finances due to the economic downturn.

40

The bipartisan Senate bill would provide the opportunity for undocumented immigrants to come 

out of the shadows, obtain documents that will permit them to work above board, and pay taxes 

like everyone else. As documented workers, these undocumented immigrants would pay 

significantly more in federal taxes as a result – on top of the billions of dollars in federal, state, and 

local taxes that they already currently pay. The Senate bill also modifies legal immigration limits 

and classifications to increase the U.S. population by 15 million by 2033. Compared to current U.S. 

citizens, immigrants are on average younger, healthier and have higher than average labor force 

participation rates. These new immigrants will join the American workforce and pay U.S. payroll 

and other taxes.

Because most immigrants are young, additional immigration will increase the ratio of workers to 

retirees. The infusion of young, healthy workers into the formal U.S. economy will help to balance 

out the otherwise aging U.S. population and provide essential financial support for U.S. social 

insurance programs. The retirement of the Baby Boomer generation makes this especially timely

39

Office of the Chief Actuary, Social Security Administration. “Response to The Honorable Marco Rubio’srequest for 

estimates of the financial effects on Social Security of S. 744, the ‘Border Security, Economic Opportunity, and 

Immigration Modernization Act.’” June 28, 2013. http://www.ssa.gov/OACT/solvency/MRubio_20130627.pdf.

40

Based on the Social Security Trustees Reports for 2009-2011. Between 2008 and 2011, revisionsin the projected 

actuarial balance due to the economic downturn totaled approximately 0.25 percent of taxable payroll, compared to 

the 0.21 percentage point improvement that would result from enactment of the Senate immigration reform bill. See 

table IV.B9. and related text in each Trustees Report for more detail.
24

and important. The large number of Baby Boomer retirees that will enroll in Social Security and 

Medicare over the next two decades will create a significant financial strain on these essential 

programs. The new additions to the formal U.S. workforce will help counteract this trend.

Similarly, Harvard Medical School researchers found that immigrants contribute more to the 

Medicare Trust Fund then they collect in benefits.

41 Their study, recently published in Health 

Affairs, concluded that: “Encouraging a steady flow of young immigrants would help offset the 

aging of the U.S. population and the health care financing challenge that it presents.”

The evidence shows that immigration reform will reduce U.S. federal budget deficits, raise labor 

force participation, and provide financial support for U.S. social insurance programs just as the 

economy and the budget are coming come under increased strain from the retirement of the Baby 

Boomer generation. Adding younger and healthier immigrants with high workforce participation 

rates is critical to U.S. fiscal health in the long-term.

41

Zallman, Leah, Steffie Woolhandler, David Himmelstein, David Bor, and Danny McCormick. “Immigrants Contributed

An Estimated $115.2 Billion More To The Medicare Trust Fund Than They Took Out in 2002-2009.” Health Affairs. May

2013.
25

V. Immigration Reform Benefits the Economy across Sectors

In addition to the benefits described above – increasing total economic growth, boosting worker 

productivity, increasing innovation, and strengthening our fiscal health – the bipartisan Senate bill 

would bring specific benefits to a range of economic sectors, including agriculture, tourism and 

hospitality, and housing.

Strengthening America’s Housing Recovery

Immigrants are a crucial factor in the United States’ housing recovery. A recent study from the 

Americas Society/Council for the Americas and Partnership for a New American Economy found 

that the 40 million immigrants currently in the U.S. have created $3.7 trillion in housing wealth. 

Moreover, immigrants help boost property values by increasing the demand for housing, as well as 

for other locally produced goods and services. Albert Saiz has found that an immigrant inflow 

equal to 1 percent of a city’s population is associated with a 1 percent increase in home prices in 

that city.

42

Immigrants stabilize and revitalize communities facing declining home values, encouraging other 

middle- and working-class Americans to move to and settle in these communities. Immigrants 

revitalize less desirable peripheral neighborhoods in costly metropolitan areas by moving into 

these harder hit neighborhoods, driving demand through their own purchasing power, and then 

drawing U.S.-born individuals to these areas. Research has shown, for example, that immigration 

has stemmed the decline of Rust Belt cities and rural areas. For example, the average home in 

Gary, Indiana, saw an estimated $1,500 increase in value due to the approximately 13,000 

immigrants that have settled there since 1990. Moreover, the largest impacts of immigration on 

the housing market have been seen in areas hardest hit by the recession. In many Sunbelt cities, 

the direct and indirect effects of immigration over the last 10 years have contributed over $10,000 

to the value of the typical home, mitigating the recession’s impact on hardest hit states like 

Arizona and New Mexico.

Immigration reform will further improve the housing market by: enabling more immigrants to 

achieve homeownership by building credit and other documentation needed for mortgage; 

boosting immigrant incomes, which will in turn drive housing demand through immigrants’ 

growing purchasing power; and increasing the number of US residents by 10.4 million by 2023, 

according to the CBO estimate, in part by facilitating family reunification and household formation.

Promoting American Agriculture

42 Saiz, Albert. “Immigration and Housing Rents in American Cities.” Journal of Urban Economics. 2007.

realestate.wharton.upenn.edu/research/papers/full/433.pdf.
26

The agriculture industry – a key engine of American economic growth – is especially reliant on 

immigrant workers. Currently, the agriculture industry is hampered by a broken immigration 

system that fails to produce predictable and stable worker flows. Today, roughly half of all 

farmworkers are estimated to be unauthorized

43

, which means deportations, employer fines, and 

work stoppages are a constant fear. Moreover, there continue to be insufficient U.S. workers to 

fill labor needs: of those crop workers surveyed between 2007 and 2009, 71 percent were foreign 

born.

44

Often, farmers and ranchers have difficulty securing laborers for critical tasks. For example, due to 

our broken immigration system, the state of Georgia experienced a shortage of more than 11,000 

agricultural workers in the spring 2011. A recent survey of fruit and vegetable producers in that 

state identified an economic loss of $181 million and 1,500 fewer jobs in agriculture and related 

industries due to labor-related production losses. That survey represented a little less than half of 

total Georgia production acreage; the study noted that if its results were representative of all 

acreage, the total yearly impact would be about $390 million and the job loss would be about

3,250 on a statewide basis.

45

In New York, analysis by the Farm Credit Associations found that over 800 farms would be at risk 

of closure if immigrant labor severely contracted.

46 Without immigrant labor, agricultural 

operations across the country – including apple farmers in Washington, citrus processors in 

Florida, and strawberry, raisin, asparagus, and lettuce growers in California – would be forced to 

cut jobs, raise prices, or succumb to foreign competition.

47 If agriculture’s access to migrant labor 

were cut off, short-term production losses would measure between $5 billion and $9 billion per 

year.

48

To bring rationality and predictability to this broken system, the bipartisan Senate bill would 

replace the H-2A visa with two new guest worker visas: one for agricultural workers with a written 

contract for employment (W-3) and one for agricultural workers with an offer of employment (W43

United States Department of Agriculture Economic Research Service. “Immigration and the Rural Workforce.” May

2013. http://www.ers.usda.gov/topics/in-the-news/immigration-and-the-rural-workforce.aspx#Hired.

44

United States Department of Agriculture Economic Research Service (2013).

45 McKissick, J.C., and S. P. Kane. “An Evaluation of Direct and Indirect Economic Losses Incurred by Georgia Fruit and 

Vegetable Producersin Spring 2011 – A Preliminary Data Analysis and Summary Working Paper.” The University of 

Georgia Center for Agribusiness and Economic Development. Spring 2011. http://gfvga.org/wpcontent/uploads/2011/10/Georgia-Fruit-and-Vegetable-Survey-Analysis-Preliminary-Report-10-6-2011.pdf.

46

Farm Credit Associations of New York, Background Analysis. “Farm Labor and Immigration Reform: Economic Impact 

to New York State Agriculture.” https://www.farmcrediteast.com/resources-and-reports/community-support/publicpolicy/~/media/files/news/immigrationfarmlaboranalysisny.ashx.

47

Calvin, L., and P. Martin. “The U.S. Produce Industry and Labor: Facing the Future in a Global Economy.” United

States Department of Agriculture Economic Research Service, Economic Research Report Number 106. November

2010. http://www.ers.usda.gov/media/135123/err106.pdf.

48 American Farm Bureau Federation – Economic Analysis Team. “Impact of Migrant Labor Restrictions on the

Agricultural Sector.” February 2006. http://www.fb.org/newsroom/nr/nr2006/02-07-06/labor%20study-feb06.pdf.
27

4). These new visas would be valid for three years and could be renewed once for an additional 

three years. Current unauthorized agricultural workers would also be eligible for “blue cards,” 

providing temporary legal status and the ability to apply for permanent resident status after five 

years, and eventually citizenship, if they continue to work in agriculture. According to a USDA 

simulation of a similar policy, an expanded agriculture temporary-worker program

49 would 

increase long-run agricultural output by between 0.2 percent and 2.0 percent, depending on the 

crop, and would increase agricultural exports by between 0.2 percent and 3.2 percent.

50

All of these benefits are reasons that the American Farm Bureau praised the passage of the 

bipartisan Senate bill, which President Bob Stallman described as “the first step in reforming our 

broken immigration system and ensuring agriculture has access to a stable and legal workforce.”

51

Boosting Tourism and Hospitality

Another boost to the economy offered by the Senate immigration bill is increased international 

travel and tourism. Provisions in the bill will facilitate travel while simultaneously strengthening 

national security through reforming the Visa Waiver Program, expanding trusted traveler 

programs, increasing the number of U.S. Customs and Border Protection officers at ports of entry, 

and permanently authorizing the Corporation for Travel Promotion, among other initiatives. New 

U.S. Customs and Border Protection officers would strengthen the U.S. economy and promote 

travel and tourism by reducing growing wait-times for travelers and cargo entering the U.S., which 

in turn creates more jobs and increases GDP; the addition of 3,500 CBPOs is expected to add over

115,000 new jobs annually and increase GDP by $7 billion. For every 1,000 additional CBPOs 

added, GDP is expected to grow by $2 billion with over 33,000 new jobs added annually.

52

Travel and tourism comprise the largest service-export industry in the U.S., setting a record $165.6 

billion in exports in 2012 and supporting 7.8 million jobs in 2012.

53 The U.S. Department of 

Commerce projects international travel to the United States will continue to grow strongly through

2018. Building on a record year in 2012, the volume of international visitors is expected to increase

49

The policy simulation assumes an H-2A expansion that increasesforeign-born U.S. farmworkers by about 30,000 in 

year one; 83,000 in year two; and roughly 90,000 in years three and four. Similarly, S.744 would place an annual cap 

on new agricultural workers(W-3 and W-4 visa holders) at 112,333.

50

“Immigration Policy and Its Possible Effects on U.S. Agriculture and the Market for Hired Farm Labor: A Simulation

Analysis” (2011) United States Department of Agriculture Economic Research Service, Staff Analysis No. 11-341

51

Statement by Bob Stallman, President, American Farm Bureau Federation, Regarding Senate Passage of Immigration

Reform Legislation. June 27,

2013.http://www.fb.org/index.php?action=newsroom.news&year=2013&file=nr0627.html

52

Estimates based on underlying analysis in Roberts, Bryan, et al. “The Impact on the U.S. Economy of Changes in Wait 

Times at Ports of Entry.” National Center for Risk and Economic Analysis of Terrorism Events, University of Southern 

California. April 2013. create.usc.edu/CBP%20Final%20Report.pdf

53

“Fast Facts: United States Travel and Tourism Industry 2012.” International Trade Administration, U.S. Department

of Commerce. http://tinet.ita.doc.gov/outreachpages/download_data_table/Fast_Facts_2012.pdf.
28

by 4.0 percent in 2013.

54 National parks and recreation sites are among the most popular 

destinations for international travelers. In 2010, 20 percent of all international travelers visited a 

national park, and from 2002 to 2011, one-tenth of all surveyed national parks visitors were of 

international origin.

55 As wages rise and middle class populations grow in emerging economies, 

tourists from China, Brazil, and India are expected to increase by 229 percent, 66 percent, and 43 

percent, respectively.56 Improving ease of travel, without compromising our security, will ensure 

that the U.S. reaps the benefit of this growth in tourism in the near future.

The broader leisure and hospitality industry – one of the fastest-growing sectors of the United 

States economy

57 

– also stands to benefit significantly from commonsense immigration reform. 

According to the Bureau of Labor Statistics, the leisure and hospitality industry has consistently 

added jobs over the past 3 years. 58 These sectors remain a source for robust economic activity and 

continue to exceed expectations.

59 The nation’s accommodation and food service industries rely 

heavily upon seasonal and temporary workers. And like agriculture, a portion of their current 

workforce is undocumented. Leaders of these industries have been longtime proponents of 

legislation that would legalize workers in the U.S. and facilitate the lawful employment of future 

foreign-born workers. The head of the American Hotel and Lodging Association this year 

applauded the Senate on behalf of the lodging industry for its bipartisan commitment to 

immigration reform that “creates jobs, boosts travel and tourism, preserves hoteliers’ access to a 

strong seasonal workforce, and stimulates economic growth.”

60

From California to Wisconsin to Tennessee, many state hospitality and tourism entities have 

vocalized their support of immigration reform which, in the words of the U.S. Travel Association,

54 “U.S. Commerce Department Forecasts Continued Strong Growth for International Travel to the United States –

203-2018,” International Trade Administration, U.S. Department of Commerce. June 10, 2013.

http://tinet.ita.doc.gov/view/f-2000-99-001/forecast/Forecast_Summary.pdf.

55

“National Travel & Tourism Strategy Task Force on Travel & Competitiveness,” 2012.

http://tinet.ita.doc.gov/pdf/national-travel-and-tourism-strategy.pdf

56

“U.S. Commerce Department Forecasts Continued Strong Growth for International Travel to the United States –

203-2018,” International Trade Administration, U.S. Department of Commerce. June 10, 2013.

http://tinet.ita.doc.gov/view/f-2000-99-001/forecast/Forecast_Summary.pdf.

57

“Travel and Tourism Spending Outpaced Growth in the Overall Economy in the First Quarter of 2013.” U.S. 

Department of Commerce, Bureau of Economic Analysis. June 24, 2013. 

http://bea.gov/newsreleases/industry/tourism/tournewsrelease.htm

58

Employment, Hours, and Earningsfrom the Current Employment Statisticssurvey (National). 

http://data.bls.gov/timeseries/CES7000000001

59

“Summary of Commentary on Current Economic Conditions by Federal Reserve District.” The Federal Reserve Beige

Book. April 17, 2013. http://www.federalreserve.gov/monetarypolicy/beigebook/beigebook201304.htm.

60 American Hotel & Lodging Association. “AH&LA Applauds Committee Passage of Immigration Reform Bill.” Press

release. June 26, 2013. http://www.ahla.com/pressrelease.aspx?id=35524
29

“will boost America's recovery by delivering jobs and economic growth to communities and

businesses nationwide.”61,62

61

“Hospitality, agriculture leaders push for immigration reform.” WACH Fox News Center. June 13, 2013. 

http://www.midlandsconnect.com/news/story.aspx?id=909448#.UdIX4PmyCJM; Lump, Ed. “Time for comprehensive 

immigration reform.” June 3, 2013. http://www.jsonline.com/news/opinion/time-for-comprehensive-immigrationreform-b9925312z1-210009901.html; Salinas, Claudia Meléndez. “Local ag, hospitality leaders call for immigration 

reform.” May 14, 2013. http://www.montereyherald.com/news/ci_23220001/local-ag-hospitality-leaders-callimmigration-reform.

62

U.S. Travel Association. “U.S. Travel Commends Senate Passage of Immigration Bill.” Press release. June 27, 2013.

http://www.ustravel.org/news/press-releases/us-travel-commends-senate-passage-immigration-bill
30

VI. Stakeholders and Groups Across the Political Spectrum Agree That

Immigration Reform is an Economic Win

John Arensmeyer, Small Business Majority: “Small business owners understand that fixing our 

country’s immigration system will help them foster better workforces, which will bolster their 

bottom lines and our economy as a whole. Increasing the number of pathways for immigrants to 

come to this country, stay legally and pay taxes will strengthen our economy and encourage a 

robust and diversified business sector. ... Everyone benefits when we encourage hard-working 

immigrants to bring their skillsets to the U.S. and let previously undocumented immigrants legally 

join our workforce, pay taxes and contribute in a meaningful way to our economy.”

Douglas Holtz-Eakin, American Action Forum: “Immigration reform can raise population growth, 

labor force growth, and thus growth in Gross Domestic Product (GDP). In addition, immigrants 

have displayed entrepreneurial rates above that of the native born population. New 

entrepreneurial vigor embodied in new capital and consumer goods can raise the standard of 

living.”

U.S. Chamber of Commerce: “Immigration reform is one of the compelling challenges of our time. 

The Chamber will continue to utilize its resources and promote support among our members for 

broad immigration reform because America cannot compete and win in a global economy without 

the world’s best talent, hardest workers, or biggest dreamers.”

Rupert Murdoch, Chairman and CEO of News Corporation: “I believe that all Americans should

have a vital interest in fixing our broken immigration system so we can continue to compete in the

21st Century global economy. ... [A]merica's future prosperity and security depends on getting our 

immigration policy right—and doing it quickly.”

Grover Norquist, President of Americans for Tax Reform: “Immigration reform will jumpstart

America’s economy and reduce our national debt.”

Center for American Progress: “Providing legal status and citizenship to the 11 million 

undocumented immigrants living in our country would trigger a significant boost to the U.S. 

economy over the next 10 years: Immigrants would earn more, consumer more, and consequently 

the economy as a whole would grow.”

Chad Stone, Chief Economist at Center on Budget and Policy Priorities: “Immigration reform will 

be good for the budget and good for the economy.”

Information Technology Industry Council: “Immigration reform is central to America’s long-term 

ability to create new jobs and remain the world’s innovation leader. The strong, bipartisan 

support in the Senate for balanced immigration legislation is a significant step away from old, 

misguided stereotypes and toward a stronger future for American workers and American 

communities.”
31

Steve Case, Chairman and CEO of Revolution: “The Senate's bill will attract the world's best 

entrepreneurs and innovators and be a key ingredient to sustaining America's long-term 

competitive edge.”

Gary Shapiro, President and CEO of the Consumer Electronics Association: “The bill embraces 

immigration reforms that are much needed to welcome foreign-born entrepreneurs, workers and 

U.S.-educated immigrants to build American businesses and create domestic jobs.”

Association of Public and Land-grant Universities: “[The passage of the Senate bill] marks a major 

milestone in the effort to comprehensively fix a broken immigration system that has failed many 

who wish to study at U.S. higher education institutions and those who wish to remain here after 

they graduate and contribute to our economic growth.”

Business Roundtable: “BRT supports comprehensive immigration reform that addresses the status 

of the more than 10 million foreign individuals living in the United States illegally, provides for 

more efficient and accurate verification of worker eligibility, and improves legal channels that 

would allow immigrants to help meet the demand for labor across many economic sectors –

including the hospitality, construction, agriculture and high-tech industries. We look forward to 

working with the President and Congress on sensible solutions to make America more competitive 

in the world economy.”

Partnership for a New American Economy: “There is broad support to modernize our immigration 

system in a way that helps grow our economy and attract the world’s most talented and hardestworking. It's time to move from politics to policy by passing a bipartisan bill that brings an 

immigration system formed in the 1960s into a 21st century global economy.”

Madeline Zavodny, Adjunct Scholar at the American Enterprise Institute: “Targeted changes to 

immigration policy geared toward admitting more highly educated immigrants and more 

temporary workers for specific sectors of the economy would help generate the growth, economic 

opportunity, and new jobs that America needs.”

National Council of La Raza: “Our economy will grow, the deficit will shrink, jobs will be created 

and our taxpaying labor force will expand so that we have more workers contributing to our tax 

system. All of these positives should demonstrate to lawmakers working on reform that we 

shouldn’t delay passage of an immigration bill which will provide our nation with additional 

economic benefits.”

Richard Trumka, President of the AFL-CIO: “The United States Senate today moved our country a 

big step closer to building a common sense immigration system that will allow millions of aspiring 

Americans to become citizens. ... There is much that works for working people in the Senate bill. 

Most of all, it allows people who are American in every way except on paper to come out of the 

shadows, lift themselves out of poverty and be recognized as contributors to our communities and 

our country.”
32

SEIU: “Passing commonsense, accountable immigration reform is also about a shared commitment 

to strengthening our economy. Lifting 11 million undocumented workers out of the underground 

economy would lift wages for every American while generating billions in additional tax revenue.”

U.S. Travel Association: “The Senate's passage today of historic immigration reform legislation is a 

significant step toward strengthening U.S. national security and encouraging more travel to and 

within the United States. Through a number of travel-friendly provisions, the bill will boost 

America's recovery by delivering jobs and economic growth to communities and businesses 

nationwide.”

American Council on Education: “As both educators and employers, we appreciate this effort at 

comprehensive immigration reform and believe it represents an important step toward creating 

an immigration system with bipartisan support that serves the needs of our country.”

Center for American Progress: “This bill will also reap economic benefits whose ripple effects will 

help improve the economic standing of millions of Americans. It’s been a long journey to today’s 

victory, and we have plenty of work ahead in the House, but today’s Senate vote solidifies the 

momentum behind real reform and a brighter future for America. The House of Representatives 

should act swiftly and deliver similar smart and forward-thinking legislation in the weeks ahead.”

American Farm Bureau: “The Senate’s passage today of a balanced immigration reform bill that 

includes a fair and workable farm labor provision is welcomed by America’s farmers and 

ranchers...A comprehensive agricultural labor plan that works for all sectors of agriculture and 

across all regions of our nation is long overdue. We commend the Senate for addressing this very 

important issue, which will help ensure the continued success of agriculture in our nation.”

National Committee to Preserve Social Security and Medicare: “We agree with both the

Congressional Budget Office and the Chief Actuary of the Social Security Administration (SSA) that

comprehensive immigration reform is good for all Americans. The new members of the national

family brought in by this bill will contribute to the growth of the economy and at the same time will

help strengthen Social Security.”

National Restaurant Association: “America’s restaurants support common-sense immigration 

reform that meetsthree key priorities: a clear path to legalization, national implementation of the 

E-Verify employee verification system that preempts inconsistent state mandates, and increased 

border security that won’t harm legal travel and tourism.”