An Economic Analysis on The Social Cost of Illegal Immigration

Van, Germinal and Orellana, Jose (2021): An Economic Analysis on The Social Cost of Illegal Immigration.

Abstract

The purpose of this paper is to analyze the economic cost of illegal immigration in the United States since the 1990s and its consequences on American society. Indeed, illegal immigration has been a major topic of discussion among the main social issues during election cycles in the United States. Those who lean more conservative have argued that illegal immigration is an externality that increase social cost. They argue that illegal immigrants increase the cost of healthcare, public education, and welfare programs such as Medicaid and food stamps. And the cost falls on the American taxpayer. Those who lean more liberal argue that the government should create social programs to assist illegal immigrants in helping them adjusting and conforming their immigration status to the laws and customs of the United States. This paper has two objectives: (1) to determine if illegal immigration imposes a higher social cost on the American taxpayer based on a multivariate regression analysis, (2) to propose recommendations to help the illegal immigrants becoming legal while minimizing the future social cost of illegal immigration on the American taxpayer. Our findings show that there is a correlational relationship between illegal immigration and the cost of social welfare, and this correlational relationship is of strong magnitude.

• Item Type: MPRA Paper
• Language: English
• Keywords: Econometrics, Economic Analysis, Applied Economics, Econometric Modelling, Multivariate Regression Analysis, Statistical Modelling
• Subjects: C - Mathematical and Quantitative Methods > C0 - General > C01 - Econometrics; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C10 - General; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C31 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions ; Social Interaction Models; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C54 - Quantitative Policy Modeling; D - Microeconomics > D6 - Welfare Economics > D60 - General; H - Public Economics > H4 - Publicly Provided Goods

References

1. U.S. Department of Homeland Security (2020).

2. Daniller, Andrew. (2019). “Americans’ Immigration Policy Priorities: Division Between—and within—the two parties.” Pew Research Center.

3. Ibid. (2019).

4. Artiga, Samantha; Diaz, Maria. (2019). “Health Coverage and Care of Undocumented Immigrants.” Kaiser Family Foundation. Issue Brief. pp.1-6.

5. Ibid. p. 3

6. Conover, Chris. (2018). “How Americans Citizens Finance $18.5 billion for Unauthorized Immigrants.” Forbes.

7. Conover, (2018).

8. Conover, (2018)

9. Camarota, Steven; Zeigler, Karen; Richwine, Jason. (2019). “How Much Would It Cost to Provide Health Insurance to Illegal Immigrants?” Center for Immigration Studies.

10. Conover, (2018)

11. Conover, (2018)

12. Conover, (2018)

13. Conover, (2018)

14. Ku, Leighton; Kessler, Bethany. (1997). “Number and Cost of Immigrants on Medicaid, The National Estimates.” The Urban Institute.

15. Ku; Kessler. (1994)

16. Ku; Kessler. (1994)

17. Camatora, Zeigler, Richwine. (2019)

18. Camarota, Zeigler, Richwine. (2019)

19. Nowrasteh, Alex; Orr, Robert. (2018) “Immigration and the Welfare State.” Research and Policy Brief: Immigration. Number 6. Cato Institute. pp. 1-8.

20. In figure 6, the term “nonimmigrants” was used. According to the Department of Homeland Security, the term “nonimmigrant” refers to foreign nationals who are admitted to the United States temporarily for a specific purpose. By contrast, the term “immigrant” refers to foreign nationals who wish to come to the United States permanently.

21. Nowrasteh; Orr. (2018)

22. Gigliotti, Katherine. (2004). “Food Stamps Access for Immigrants: How States Have Implemented the 2002 Farm Bill Restorations.” National Conference of State Legislatures. pp.1-13

23. Ibid. p. 3

24. Ibid. p. 3

25. Ibid. p. 3

26. Ibid. p. 3

27. Ibid. p. 9

28. Passel, Jeffrey; Cohn, D’Vera. (2019). “Children of unauthorized immigrants represent a rising share of K-12 students.” Pew Research Center.

29. Passel; Cohn. (2019)

30. Passel; Cohn. (2019)

31. Passel; Cohn. (2019)

32. Passel; Cohn. (2019)

33. Daly, Christopher J. (2017) “The Impact of Immigrant Children on America’s Public Schools.” Negative Population Growth. pp. 1-8

34. Ibid. p. 3

35. Ibid. p. 3

36. Ibid. p. 4

37. Ibid. p. 4

38. Ibid. p. 4