Economists as an Undocumented Immigrant or DACA Recipient
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Jan 12, 2024

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23 Min Read

1. How do undocumented immigrants or DACA recipients contribute to the economy as workers?


Undocumented immigrants and DACA recipients play a vital role in the economy as workers. They fill in essential jobs that many Americans do not want to do, such as agriculture, construction, and low-wage service sector jobs.

Firstly, undocumented immigrants and DACA recipients contribute to the economy by filling labor shortages in various industries. In the agricultural sector, for example, they make up a large portion of the workforce and contribute significantly to food production in the United States. Without these workers, many crops would go unharvested, leading to higher costs and potential food shortages.

They also contribute to the construction industry by taking on labor-intensive and often dangerous jobs at lower wages than U.S. citizens. This allows construction companies to keep labor costs down and complete projects more economically.

Moreover, undocumented immigrants and DACA recipients are a crucial part of the service industry workforce. They work in restaurants, hotels, retail stores, and other businesses that rely on low-skilled workers. Without their contributions, businesses would have a hard time finding enough employees to meet customer demand.

Additionally, these workers pay taxes just like any other employee, contributing billions of dollars each year. According to a report by the Institute on Taxation & Economic Policy (ITEP), undocumented immigrants paid an estimated $11.74 billion in state and local taxes in 2012 alone.

Furthermore, their contributions also extend beyond their own employment. Many undocumented immigrants are entrepreneurs and start their own businesses or contribute to existing ones through their purchasing power. This creates jobs for others and stimulates economic growth.

In conclusion, undocumented immigrants and DACA recipients play an essential role in the U.S. economy as valuable workers who fill labor shortages in various industries while also contributing through paying taxes and stimulating economic growth.

2. What economic barriers do undocumented immigrants or DACA recipients face in terms of employment opportunities?


1. Limited job opportunities: Undocumented immigrants and DACA recipients face limited job opportunities due to their legal status. Many employers may be hesitant to hire them due to potential legal consequences.

2. Difficulty in obtaining employment authorization: Undocumented immigrants are not authorized to work in the United States, and thus cannot obtain a Social Security Number or work permit. This makes it difficult for them to secure formal employment.

3. Lower wages and exploitation: Due to their lack of legal status, undocumented immigrants and DACA recipients are often forced to work in low-paying jobs with no legal protection or benefits. This makes them vulnerable to exploitation by employers.

4. Discrimination based on immigration status: Some employers may discriminate against undocumented immigrants or DACA recipients in the hiring process, making it even more challenging for them to find employment.

5. Limited access to education and training: Undocumented immigrants and DACA recipients may face barriers in accessing education and training opportunities, which can limit their skills and qualifications for better-paying jobs.

6. Fear of deportation: The constant fear of deportation also poses a significant barrier for undocumented immigrants and DACA recipients seeking employment, as they may be hesitant to disclose their legal status or advocate for better working conditions.

7. Prohibitions on certain occupations: Some states have laws that prohibit undocumented immigrants from working in certain occupations such as healthcare, teaching, or government positions, further limiting their job opportunities.

8. Ineligibility for federal benefits and protections: Undocumented immigrants are typically not eligible for federal benefits such as unemployment insurance, workers’ compensation, or workplace protections like overtime pay and safe working conditions, leaving them more vulnerable in the workplace.

9. Language barriers: Many undocumented immigrants may face language barriers that prevent them from accessing job information or communicating effectively with employers.

10. Transportation limitations: Without access to a driver’s license, undocumented immigrants may face challenges commuting to job opportunities that require reliable transportation.

3. How does the fear of deportation affect an undocumented immigrant or DACA recipient’s economic decisions?


The fear of deportation can significantly affect an undocumented immigrant or DACA recipient’s economic decisions in several ways:

1. Limited Job Opportunities: The fear of being deported can make it challenging for undocumented immigrants to find stable and well-paying jobs. This is because many employers may not want to hire individuals who do not have legal documentation, as they fear potential legal repercussions.

2. Reliance on Cash Payments: Due to limited job opportunities, some undocumented immigrants may resort to working under the table and accepting cash payments. This can make it challenging for them to save money, build credit, and access financial services like loans, mortgages, or credit cards.

3. Underemployment: Many undocumented immigrants end up taking on low-wage jobs that are usually off-the-books and lack benefits like health insurance and paid time off. This can lead to underemployment, where individuals with skills and qualifications work below their potential.

4. Limited Economic Mobility: Undocumented immigrants’ fear of deportation may also prevent them from seeking better job opportunities or taking risks such as starting a business or pursuing higher education. This limits their economic mobility and ability to improve their financial situation.

5. Lack of Banking Services: The fear of deportation can also prevent undocumented immigrants from opening bank accounts due to the requirement for government-issued identification documents. As a result, they may have to rely on costly alternative financial services like check cashing establishments, which can further deplete their financial resources.

6.Uncertainty about Future Plans: DACA recipients may face similar challenges with job opportunities and economic mobility as they are still at risk of losing their protected status at any time if the program is terminated or not renewed. This uncertainty makes it difficult for them to plan for their future and invest in long-term goals like buying a house or saving for retirement.

In conclusion, the fear of deportation creates significant barriers for undocumented immigrants and DACA recipients when it comes to finding employment, building wealth, and achieving economic stability. It can also lead to restricted job choices, lack of access to essential services, and limited economic mobility, making it challenging for them to fully participate in the economy.

4. Do undocumented immigrants or DACA recipients receive government benefits like unemployment insurance and social security?


Undocumented immigrants are not eligible for government benefits such as unemployment insurance and social security. The Deferred Action for Childhood Arrivals (DACA) program does not provide eligibility for these benefits either. DACA recipients may be eligible for some state-level benefits, such as driver’s licenses and in-state tuition, depending on the state in which they reside. However, they are still not eligible for federal benefits.

5. How do restrictions on driver’s licenses for undocumented immigrants or DACA recipients impact their mobility and ability to participate in the economy?


Restrictions on driver’s licenses for undocumented immigrants and DACA recipients can have a significant impact on their mobility and economic participation in several ways:

1. Limited access to transportation: Without a driver’s license, undocumented immigrants and DACA recipients are unable to legally drive and thus have limited access to transportation. This can make it difficult for them to commute to work, school, or other necessary locations, which can lead to challenges in maintaining stable employment or education.

2. Barriers to job opportunities: Many jobs require a valid driver’s license as a job requirement, such as positions that involve driving or require the use of a vehicle for work purposes. Without a license, undocumented immigrants and DACA recipients may face barriers in accessing these job opportunities.

3. Difficulties in carrying out daily activities: Not having a driver’s license can limit the ability of undocumented immigrants and DACA recipients to carry out basic tasks such as grocery shopping, taking children to school or attending medical appointments. This can further hinder their ability to participate fully in society.

4. Potential for increased financial burden: Undocumented immigrants and DACA recipients without driver’s licenses may have to rely on other forms of transportation such as public transit, ride-sharing services or carpooling with others. These options may be more expensive and less convenient than driving oneself, leading to increased financial strain.

5. Increased risk of deportation: In some cases, driving without a valid license can result in legal consequences for undocumented immigrants or DACA recipients which can put them at risk of deportation.

Overall, restrictions on driver’s licenses for undocumented immigrants and DACA recipients can create significant barriers that limit their mobility and economic opportunities, making it challenging for them to fully participate in the economy.

6. Are there any specific industries that heavily depend on the labor of undocumented immigrants or DACA recipients?


Yes, there are several industries that heavily depend on the labor of undocumented immigrants and DACA recipients. These include:

1) Agriculture: Undocumented immigrants make up a significant portion of the agricultural workforce in the United States, especially in labor-intensive jobs such as picking fruits and vegetables.

2) Construction: The construction industry also heavily relies on undocumented workers for various types of manual labor, such as building and demolition work.

3) Hospitality and Tourism: Many hotels, restaurants, and other hospitality businesses employ undocumented workers due to their willingness to take low-paying jobs in this industry.

4) Healthcare: In certain areas of the country, undocumented immigrants make up a substantial percentage of the healthcare workforce as nurses, home health aides, and other essential roles.

5) Service Industry: Many service-based industries like landscaping, cleaning services, and household assistance rely heavily on undocumented workers for their workforce.

6) Manufacturing: The manufacturing sector is another industry that relies on undocumented workers for manual labor jobs in factories and plants.

7) Food Processing: The food processing industry depends heavily on immigrant workers for its processes. This includes everything from meatpacking to food canning plants.

8) Home Caregiving: Undocumented immigrants make up a large percentage of caregivers for children, the elderly, and individuals with disabilities due to their availability to take on these demanding roles at lower wages.

7. What is the economic impact of deporting large numbers of undocumented immigrants or revoking DACA status for recipients?


The economic impact of deporting large numbers of undocumented immigrants or revoking DACA status for recipients is complex and controversial, and it depends on various factors such as the number of individuals affected, their level of education and skills, and the specific industries they work in.

On one hand, proponents of stricter immigration policies argue that removing undocumented immigrants from the workforce would open up job opportunities for American citizens and legal residents. They also argue that lower competition for jobs would drive wages up and improve conditions for U.S. workers.

However, many experts argue that mass deportations or revoking DACA status could have significant negative effects on the economy. First, many undocumented immigrants contribute to the economy through their labor, paying taxes and purchasing goods and services. Removing them from the workforce could lead to labor shortages in certain industries, which could result in higher production costs and ultimately higher prices for consumers.

Moreover, a study by the Center for American Progress estimated that revoking DACA status for its recipients would result in an annual GDP loss of $433 billion over ten years due to losses in productivity and tax revenue. This loss would also have ripple effects on businesses that rely on these individuals’ consumption, resulting in further economic impacts.

Additionally, some industries heavily depend on immigrant labor, such as agriculture, construction, and hospitality. A decrease in this labor pool could disrupt these sectors’ operations and potentially lead to reduced economic output.

Furthermore, removing large numbers of undocumented immigrants from communities could also have a widespread impact on local economies. These individuals often rent housing units or own homes, pay property taxes, and support local businesses. Their removal could result in vacancies or foreclosures in housing markets and reduced patronage for small businesses.

In summary, the economic impact of deporting large numbers of undocumented immigrants or revoking DACA status is likely to be significant but difficult to quantify precisely. It could lead to labor shortages affecting various industries’ operations and cause a decline in economic output, tax revenue, and consumer spending. Disrupting the lives of millions of individuals could also have negative effects on local economies. However, some argue that these measures would result in job opportunities and better wages for American workers, which could potentially benefit the economy in the long run.

8. Are there any economic incentives for businesses to hire and exploit cheap labor from undocumented immigrants or DACA recipients?


In general, hiring undocumented immigrants is illegal and businesses can face fines and legal consequences for doing so. However, some businesses may still hire undocumented immigrants because they can pay them lower wages and avoid other costs such as providing benefits or paying taxes. This can create a competitive advantage for these businesses by reducing their labor costs.

As for DACA recipients, they have work authorization and are legally allowed to work in the United States. However, some employers may still try to exploit them by offering lower wages or less favorable working conditions because DACA recipients are often young and inexperienced workers who may not be aware of their rights or afraid to speak out against exploitation.

Overall, there are potential economic incentives for businesses to hire cheap labor from undocumented immigrants or DACA recipients, but it is important to note that doing so is illegal and can result in penalties for both the business and the individual worker.

9. How does uncertainty about immigration policies affect investment in businesses owned by undocumented immigrants or DACA recipients?


Uncertainty about immigration policies can have a major impact on the investment in businesses owned by undocumented immigrants or DACA recipients. It creates a sense of instability and risk for potential investors, as they may fear that changes in immigration policies could lead to the business owner being forced to leave the country or facing difficulties in running their business.

Such uncertainty also affects the access to funding and resources for these businesses. Undocumented immigrants and DACA recipients often face barriers in obtaining traditional financing options such as loans or credit from banks, which can hinder their ability to grow and expand their businesses.

Moreover, uncertain immigration policies can also discourage entrepreneurs from starting businesses, leading to a lack of economic opportunities in communities that are heavily impacted by immigration policies. This can result in a slower growth rate for these communities and ultimately affect the overall economy.

Uncertainty about immigration policies can also have a negative impact on consumer confidence, as customers may be hesitant to support businesses owned by undocumented immigrants or DACA recipients due to concerns about their legal status. This can result in decreased sales and revenue for these businesses.

Overall, uncertainty about immigration policies creates an unstable environment for business owners who are already facing challenges due to their immigration status. It ultimately hinders their ability to invest in their businesses and contribute to the economy, which can have wider consequences on employment opportunities and economic growth.

10. Do undocumented students who qualify for in-state tuition contribute positively to the economy through higher education and potential career opportunities?


Yes, undocumented students who qualify for in-state tuition contribute positively to the economy through higher education and potential career opportunities. These students have the opportunity to receive a higher education, which can lead to better job prospects and higher paying jobs. This not only benefits the individual student but also contributes to the overall economic growth and development of their state or country.

Additionally, as educated individuals, they are more likely to pay taxes and contribute to the economy through consumer spending. They may also create new businesses and provide employment opportunities for others. This has a ripple effect on the local and national economy.

Moreover, by providing access to education for undocumented students, states benefit from more educated workers who can fill essential jobs in sectors such as healthcare, technology, and agriculture. This leads to a more skilled workforce overall, which can attract businesses and industries that require highly educated employees.

Overall, giving undocumented students access to in-state tuition benefits both the individual students and the economy as a whole. It allows them to reach their full potential while contributing positively to society and boosting economic growth.

11. Can being an undocumented immigrant or a DACA recipient hinder one’s ability to start a business and create jobs in the community?

Yes, being an undocumented immigrant or a DACA recipient can hinder one’s ability to start a business and create jobs in the community. There are several reasons for this:

1. Limited access to funding: As an undocumented immigrant or a DACA recipient, you may not have access to traditional sources of funding such as loans from banks or investment from venture capitalists. This can make it difficult to secure the necessary capital to start and grow your business.

2. Legal barriers: Depending on your immigration status, you may face legal barriers that prevent you from starting certain types of businesses or obtaining necessary licenses or permits. This can limit your options and make it more difficult to establish a successful business.

3. Insecurity about future status: The uncertain nature of the immigration system can create insecurity about your future status and ability to continue running your business. This uncertainty can make it difficult to plan for long-term growth and stability.

4. Limited job opportunities: Undocumented immigrants and DACA recipients may face limited job opportunities due to their immigration status, making it challenging to find skilled employees for their businesses.

5. Potential discrimination: Unfortunately, some people may choose not to do business with an undocumented immigrant or DACA recipient due to their immigration status, which could impact the success of their business.

Overall, being an undocumented immigrant or DACA recipient can present significant challenges when it comes to starting a business and creating jobs in the community. However, there are resources available that can help support entrepreneurs in these situations, such as local small business development centers and organizations that specifically assist immigrant entrepreneurs.

12. Is there a correlation between regions with high populations of undocumented immigrants or DACA recipients, and economic development in those areas?


The answer to this question is not entirely clear-cut, as there can be a variety of factors at play in determining economic development in a certain region. However, some studies have found evidence for a positive correlation between high populations of undocumented immigrants or DACA recipients and economic growth.

One study by Manuel Pastor et al. (2011) looked at the impact of unauthorized immigrant populations on metropolitan areas in the United States. They found that, on average, higher levels of unauthorized immigration were associated with lower levels of poverty and higher levels of economic output and job growth.

Another study by Giovanni Peri (2016) found that DACA recipients have had positive effects on the labor market outcomes of native-born workers in the US. Specifically, he found that DACA recipients increased employment rates and wages for native-born workers, leading to overall economic growth.

Additionally, some research has suggested that undocumented immigrants are more likely to start businesses compared to other immigrant groups. A study by Robert Fairlie and Bruce D. Meyer (2003) found that the self-employment rate among undocumented immigrants is higher than among legal immigrants and native-born citizens, indicating potential economic contributions through entrepreneurship.

On the other hand, there are also studies that have found no significant correlation between undocumented immigrant populations and economic development. One reason for this could be that while they may contribute to the economy through labor or entrepreneurship, their lack of legal status may also limit their access to resources and opportunities for advancement.

Overall, while there is some evidence for a positive correlation between high populations of undocumented immigrants or DACA recipients and economic development, it is important to consider various factors at play and avoid oversimplifying complex issues related to immigration and economics.

13. How do border control measures, such as increased border patrol, affect local economies near the borders where many undocumented immigrants live and work?


Border control measures, such as increased border patrol, can have a significant impact on local economies near the borders where many undocumented immigrants live and work. This is because these immigrants make up a significant portion of the labor force in many industries, such as agriculture, construction, and hospitality.

One effect of increased border patrol is the decrease in available labor for these industries. Undocumented immigrants may be deterred from crossing the border due to increased security measures and fear of deportation. This leads to labor shortages, which can result in higher wages for low-skilled positions or difficulty finding workers for certain jobs. As a result, businesses may struggle to remain competitive or may be forced to raise prices, which could potentially harm their customers and overall economic growth.

Moreover, many undocumented immigrants contribute to the local economy by purchasing goods and services from local businesses. With stricter border control measures in place, these individuals may choose not to travel across the border as frequently or spend less money when they do visit. This can lead to a decline in consumer spending and negatively impact small businesses that depend on this revenue.

Furthermore, strict border control measures can create social and political tensions within communities near the border. There may be increased mistrust between law enforcement and residents, who feel targeted or unfairly treated due to their ethnicity or immigration status. This can create a hostile environment and hinder community relationships, which can ultimately have negative effects on the local economy.

In summary, increased border control measures can disrupt local economies near the borders where undocumented immigrants live and work by creating labor shortages, reducing consumer spending, and causing social tensions. It is important for policymakers to consider these potential impacts when implementing border control policies in order to minimize any adverse effects on local economies.

14. What is the economic cost of separating families through deportations of parents who are breadwinners for their families as well as leaving behind their American-born children who may be citizens.


The economic cost of separating families through deportations of breadwinners can vary greatly depending on the specific circumstances and characteristics of each family. It is difficult to estimate a specific cost, but some potential economic impacts could include:

1) Loss of income: If the deported parent was the primary breadwinner for the family, their removal from the US could result in a significant loss of household income. This loss of income could negatively impact the family’s ability to cover basic expenses such as housing, food, and healthcare.

2) Increased dependence on government assistance: In cases where the deported parent was also the primary caregiver for children or other family members with special needs, their removal may leave these individuals without adequate care. As a result, they may need to rely on government assistance programs such as Medicaid or SNAP (Supplemental Nutrition Assistance Program), which can place a strain on public resources.

3) Reduction in tax revenue: Deportation of an individual who was paying taxes can result in a reduction in tax revenue for both local and federal governments. This loss of revenue can have various implications, including potential cuts to public services or higher taxes for those that remain.

4) Negative impact on local economy: Many immigrants contribute to their local economies through businesses they own or work for. When a parent is deported and takes their business or employment with them, it can have a ripple effect on the local economy. This could result in job losses and decreased consumer spending in the community.

5) Cost of reintegration: If families are separated due to deportation, there may be additional costs associated with reuniting them. This could include travel expenses for family members to visit each other or legal fees if they are pursuing avenues for reunification through immigration channels.

6) Long-term effects on children: The emotional toll on children who are separated from their parents through deportation cannot be quantified easily. However, research has shown that children who experience such traumatic events can suffer long-term psychological and developmental consequences, which could potentially result in future economic costs for society.

15. Do businesses rely on hiring undocumented immigrants due to scarcity of available workforce willing to take on low-paying jobs with poor working conditions, at higher prices, resulting from state minimum wage laws enforced against them by Texas authorities (such as happened during Hurricane Harvey) ?


There is evidence to suggest that some businesses in Texas rely on hiring undocumented immigrants due to a lack of available US citizens or documented immigrants who are willing to work for low pay and under poor working conditions. In some cases, employers may prefer to hire undocumented immigrants because they may be less likely to report workplace violations or advocate for better wages and working conditions.

During natural disasters, such as Hurricane Harvey, the demand for labor can increase significantly, leading some businesses to turn to undocumented workers who may be willing to work at lower wages. This was seen during the aftermath of Hurricane Harvey when workers were needed for reconstruction and cleanup efforts. Some reports indicated that employers took advantage of this situation by paying undocumented workers below minimum wage and providing substandard housing.

In addition, stricter enforcement of state minimum wage laws against businesses that hire undocumented workers can result in higher prices for goods and services. This can make it more difficult for these businesses to compete with others who do not comply with labor laws.

Overall, while there are examples of businesses relying on undocumented immigrants for cheap labor, it is important to note that many studies have found that immigration generally has a small or neutral impact on wages and employment levels for US-born workers. Therefore, the use of undocumented labor cannot be solely attributed to state minimum wage laws or perceived scarcity of available workforce willing to take on low-wage jobs.

16.Remittances sent by undocumented individuals back to their home country contribute to the home country’s economy. Can it be considered as a form of foreign aid from the United States?


No, remittances sent by undocumented individuals back to their home country cannot be considered as a form of foreign aid from the United States. Foreign aid is usually provided by governments or international organizations, while remittances are personal transactions made by individuals. Additionally, remittances do not involve any government oversight or intention to provide assistance to the receiving country. They are simply funds being transferred from one individual to another for personal reasons.

17. How does local law enforcement’s involvement in federal immigration policies impact community trust and cooperation, potentially creating economic repercussions for businesses that rely on undocumented workers?


When local law enforcement takes on an active role in enforcing immigration policies, it can have a significant impact on community trust and cooperation. This can create economic repercussions for businesses that rely on undocumented workers in several ways:

1. Fear of Deportation: Undocumented immigrants may be hesitant to interact with local law enforcement if they fear being deported or their personal information being shared with federal immigration authorities. This fear can lead to a decrease in cooperation and reporting of crimes, making it more difficult for law enforcement to ensure public safety.

2. Lack of Documentation: Many undocumented workers do not have proper documentation, which may make it difficult for them to obtain employment or secure loans. This could also affect their ability to purchase goods and services from local businesses, impacting the overall economy.

3. Labor Shortages: Undocumented immigrants make up a significant portion of the workforce in industries such as agriculture, construction, and hospitality. If these workers are targeted by local law enforcement and forced to leave or go into hiding, it can create labor shortages for businesses that rely on them, leading to disruptions in production and potentially even closures.

4. Negative Perception: Local law enforcement’s collaboration with federal immigration agencies can create a negative perception among immigrant communities. This can lead to decreased foot traffic and sales for businesses located in these areas as customers may be afraid to venture out due to fear of being subjected to immigration checks.

5. Loss of Talent: Many undocumented immigrants possess valuable skills and contribute significantly to the local economy through entrepreneurship or other means. If they are continuously threatened with deportation or faced with barriers to employment, these individuals may choose to leave their communities for areas where they feel more welcomed and secure.

Overall, when local law enforcement is overly involved in federal immigration policies, it creates an environment of fear and uncertainty within immigrant communities. This drives away potential customers from local businesses and negatively impacts the economy as a whole.

18. Are there any economic advantages for countries, such as Mexico, when their citizens migrate to the U.S. as undocumented immigrants or DACA recipients?


There are different perspectives on this issue and the economic impact of undocumented immigration is a topic of debate.

On one hand, some argue that undocumented immigrants contribute to economic growth by filling low-wage and often undesirable jobs in industries such as agriculture, construction, and service industries. They also pay taxes, including sales, property, and Social Security taxes (through fraudulent or false documentation). In 2016, undocumented immigrants paid an estimated $27 billion in federal taxes.

Additionally, undocumented immigrants contribute to the economy through their consumer spending. A study by the Institute on Taxation and Economic Policy found that in 2010, undocumented immigrants collectively had $11.74 billion in consumer purchasing power.

Furthermore, some argue that DACA recipients brought to the U.S. as children have been able to achieve higher education and secure higher-paying jobs, which ultimately benefits the economy through increased productivity and tax revenue.

On the other hand, critics argue that undocumented immigration puts strain on social services and creates competition for low-skilled jobs with American workers. They also argue that providing benefits, such as education and healthcare, to undocumented immigrants can be financially burdensome for state and local governments.

Overall, the economic impact of undocumented immigration is complex and there are valid arguments from both sides. Ultimately, the extent of any economic advantages for countries like Mexico would depend on various factors including the number of migrants leaving their country and their contributions to the host country’s economy.

19. What is the economic impact of DACA recipients losing their work permits and being unable to contribute to taxes and social security?


The economic impact of DACA recipients losing their work permits and being unable to contribute to taxes and social security would likely be significant. Since the implementation of DACA in 2012, hundreds of thousands of undocumented immigrants brought to the US as children have been able to obtain work permits and legally join the workforce. This has allowed them to contribute to the economy through paying taxes and contributing to Social Security and Medicare funds.

If these work permits were revoked, DACA recipients would no longer be able to legally work in the US. This would result in a loss of tax revenue for the government, as well as a decrease in contributions to Social Security and Medicare funds. A study by the Institute on Taxation and Economic Policy estimated that over $11 billion in federal taxes could be lost over a decade if DACA recipients were unable to work.

Additionally, DACA recipients make important contributions to various industries such as healthcare, education, technology, and small businesses. Losing their participation in the workforce could result in labor shortages and decreased productivity. According to a study by the Center for American Progress, revoking DACA could cost employers $3.4 billion in turnover costs.

DACA recipients also often use their earnings to support their families and contribute to local economies through consumer spending. A report by New American Economy estimates that rescinding DACA would result in a $460.3 billion decrease in US GDP over a decade.

Furthermore, many DACA recipients are highly educated individuals who have been able to pursue higher education through their work permits. Losing these permits could mean that they are unable to continue their studies or apply for jobs that require specific education qualifications, which could lead to an overall decrease in human capital development.

Overall, losing thousands of productive workers who contribute billions of dollars in taxes and economic activity each year would have a significant negative impact on the US economy at both a federal and local level.

20. How does the presence of undocumented immigrants or DACA recipients affect local tax revenue and funding for public services such as schools and healthcare?


The presence of undocumented immigrants or DACA recipients can have both positive and negative effects on local tax revenue and funding for public services.

On the positive side, these individuals often work and pay taxes, contributing to the local tax base. According to a study by the Institute on Taxation and Economic Policy, undocumented immigrants contribute an estimated $11.64 billion in state and local taxes each year. This includes sales and excise taxes, property taxes, and income taxes (either through payroll taxes or utilizing Individual Taxpayer Identification Numbers).

Additionally, many of these individuals may also own homes or rent properties, generating additional property tax revenue for their communities.

However, there can also be negative impacts on tax revenue and funding for public services. Undocumented immigrants may face barriers in accessing certain government programs such as Medicaid or SNAP (Supplemental Nutrition Assistance Program), which can result in limited resources being allocated towards these services.

Furthermore, since undocumented immigrants often earn lower wages than native-born workers, they may receive less income tax revenue for the government. This can also impact local school funding as schools rely heavily on property taxes to fund their operations.

In areas with a large immigrant population, there can also be strain on public services such as healthcare and education as resources are spread thin among a growing number of people.

Overall, the impact of undocumented immigrants or DACA recipients on local tax revenue and funding for public services is complex and varies depending on factors such as location and individual circumstances.

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