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Thursday, Feb. 24, 2005 11:10 a.m. EST

Americans Lose $68 Billion to Illegals

Using a new approach, Columbia University economists David Weinstein and Donald Davis estimate the net economic losses from immigration to Americans.

Unlike earlier studies, this new model does not treat the movement of immigrant labor into the country simply as a result of abundant resources and demand for labor, assumptions more appropriate to the 19th century.

Rather, the model takes into account globalization, the technological superiority of the American economy, and the resulting high standard of living.

Among the report’s findings:

  • In 2002, the net loss to U.S. natives from immigration was $68 billion.

  • This $68 billion annual loss represents a $14 billion increase just since 1998. As the size of the immigrant population has continued to increase, so has the loss.

  • The decline in wages is relative to the price of goods and services, so the study takes into account any change in consumer prices brought about by immigration.

  • The negative effect comes from increases in the supply of labor, and not the legal (or illegal) status of immigrants.

  • While natives lose from immigration, the findings show that immigrants themselves benefit substantially by coming to America.

  • Those who remain behind in their home countries also benefit from the migration of their countrymen.

    Donald R. Davis and David E. Weinstein are both professors of economics at Columbia University, as well as Research Associates at the National Bureau of Economic Research (NBER).

    Editor's note:

  • Illegal immigration threatens our security and tears at the fiber of America - click here!

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