Tag: immigration

Ted Cruz’s Mixed Record on Immigration Reform

Republican presidential candidates Ted Cruz and Marco Rubio both impressed audiences in the last debate.  Senator Rubio’s positions on immigration are discussed frequently, but Senator Cruz is normally viewed as an immigration restrictionist – an unfair characterization.  It’s more important to look at Senator Cruz’s actions when he offered amendments to the 2013 “Gang of Eight” comprehensive immigration reform bill (S. 744) than it is to cherry-pick a few quotes.  Senator Cruz did end up voting against S. 744, but only after he offered many amendments.   

Senator Ted Cruz was a tremendous supporter of skilled immigration and supported massively expanding the size of those programs, even beyond what was proposed in S. 744.  He offered four amendments (1324, 1326, 1586, 1587), to expand the number of employment based green cards to over a million annually.  Senator Cruz offered two amendments (1325 and 1585) to increase the number of H-1B visas issued annually to 325,000 while S. 744 allowed an upward bound of 180,000 annually (with some upward adjustments possible).  In other words, Senator Cruz’s amendment intended to practically double the number of H-1B visas over that which was proposed in the Senate’s 2013 comprehensive immigration reform bill.  Amendment 1587 also increased the number of H-1B visas and employment based green cards.  Senator Cruz’s amendments would have also allowed the spouses of all H-1B visa holders to work legally – going beyond President Obama’s actions to increase work eligibly for those spouses.  Expanding the number of green cards and H-1B visas for skilled workers would have been a tremendous boost to the U.S. economy.   

A Tale of Two Studies

Academics and professional economists have critiqued many well known academic papers on immigration in the last year. The first was by Alan de Brauw and Joseph R.D. Russell and it replicates and expands a famous 2003 paper by Harvard University economist George Borjas entitled “The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market.” 

Borjas famously found that from 1960-2000 there was a  wage elasticity of -0.38, meaning that a 10 percent increase in the size of the labor force due to immigration in a particular skill-cell lowered the average weekly wages in that cell by 3.8 percent relative to workers in other skill-cells.  Borjas’ paper is an impressive piece of scholarship and has been the lynchpin of arguments to close the border in order to protect wages.  Many economists disagree with Borjas

De Brauw and Russell had three findings.  Their first finding was that the wage elasticity dropped to -0.22 when they extended Borjas’ study to 2010. That is an important finding by itself – if the Borjas model was correct then why would the impact of immigrants on wages decrease as more of them entered the labor force between 2000 and 2010? 

Their second set of findings is that small changes in variable definitions turned some of Borjas’ ideas into statistically insignificant results. While not definitive, that suggests that the conclusions in his paper are not reliable.     

That leads to De Brauw and Russell’s third set of findings. They looked at the relationship between annualized male and female wages in the skill-cells when women entered the workforce in significant numbers. The correlation turned out to be positive­, which means men and women with the same skill level are complementary.  Thus, they argued that Borjas’ model is misspecified as it assumed immigrants and natives in the same skill-cells are more substitutable than they really are. If this finding is true, it would call into question the assumptions Borjas’ built in to his model, namely that immigration and natives are substitutable rather than complementary.

I’m still eagerly awaiting Borjas’ response to De Brauw and Russell’s paper. The critique of Borjas’ paper was serious because it replicated his work, extended it another decade, and found the results didn’t hold up. Many academics have already contested Borjas’ claims in numerous ways as I document here and here but this challenge cuts deep.

Latinos Don’t Hate Republicans, Except for Trump

In 2012, Exit Polls revealed that President Obama garnered 71% of the Hispanic vote, while his Republican rival Mitt Romney captured a mere 27%. In 2008, Republican John McCain didn’t do much better, capturing only 31% of the Latino vote to Obama’s 67%. In sum, Latinos have demonstrated a strong affinity towards the Democrats. Is that because they hate Republicans? The data suggests no. 

A recent MSNBC/Telemundo/Marist poll finds that while Latinos are more favorable towards Democratic presidential candidates they are not antagonistic towards Republican candidates either, they just don’t know them—except for Trump.

On average, 17% of Hispanics gave negative ratings to potential Democratic nominees  Hillary Clinton, Joe Biden, and Bernie Sanders. Nearly the same share—15% gave negative ratings on average toward Republican candidates including Ben Carson, Marco Rubio, Jeb Bush, Ted Cruz, and Scott Walker. This number excludes, however, the 70% who gave a negative rating of Donald Trump, immigration provocateur.

While Hispanics don’t disproportionately view Republicans unfavorably, they do give more positive marks towards the Democrats. On average, 35% of Latinos had positive ratings of Democratic candidates and 20% had positive ratings of Republican candidates. 

A major difference between Republican and Democratic candidates was the share of Latinos who had never heard of, or had no opinion of, the candidates. On average, 42% of Latinos had no opinion of Republican candidates (again, excluding Trump from this average) compared to 27% who had no opinion of Democratic candidates. 

This data indicate that Latinos don’t hate Republicans. Instead, Republicans haven’t shown up in community venues or in news mediums to garner greater exposure in Hispanic communities as much as Democrats. When Republicans do make headlines in Hispanic communities, it’s typically for bombastic proposals like Trump’s plan to forcibly deport 11 million unauthorized immigrants, necessarily breaking apart families and loved ones.

Perhaps surprisingly, Latinos’ negative attitudes toward Trump do not spill over toward the other GOP candidates. This means GOP candidates can stake out different positions on immigration and potentially win over a fast-growing demographic in the country.

Pope Francis on Immigration

Pope Francis asked all Catholics to pray for those “who seek a home where they can live without fear” but went further by actually praising those who help refugees.  In arguing for the admission of more Syrian refugees, he said the goal should be “to give them a concrete hope, and not just to tell them: ‘Have courage, be patient!’”  No doubt the Pope would go further than many of us in arguing for welfare for refugees even though merely getting the governments of the way to stop hurting refugees is enough, but his full-throated support for granting them refuge is commendable.

Center for Immigration Studies Report Exaggerates Immigrant Welfare Use, Part 2

Steve Camarota of the Center for Immigration Studies (CIS) wrote a response to my criticism of his recent report.  Camarota and I have gone back and forth before on similar issues in the past (here and here).      

Camarota responded to few of the points I made and many that I didn’t make.  The gist of his response is that I changed the subject rather than replying to his paper which is odd since, in his response, he dodged many of my specific points while going off on tangents.  Camarota wrote, “Readers should carefully note when would-be critics try to change the subject.”  Good advice – Camarota should have followed it.     

Here are the points I made in my initial post that he didn’t respond to: 

  1. The head of household variable that forms the core of CIS’s analysis isn’t useful or used much anymore by scholars who study this issue.  That variable counts many native-born Americans, including American-born spouses of immigrants, as part of the welfare consuming households.  This significantly exaggerates welfare use rates.  There are otherreasons why households are not a useful unit of comparison.  Camarota didn’t respond to this.   
  2. The CIS report does not report the dollar value of welfare benefits consumed.  When immigrants consume welfare, the dollar value of the benefits is typically far lower for them than it is for natives – sometimes substantially so.  CIS could have included the value of welfare benefits consumed but they did not.  Camarota did not response to this.    
  3. Larger immigrant households could be driving the results.  Camarota did not respond to this. 
  4. Social Security and Medicare should be included because they are the largest programs in the welfare state.  Camarota sort of responded to that but then oddly implied that I support these welfare programs.  CIS frequently cites the existence of the welfare state to argue against immigration – whether legal or illegal.  I frequently use immigration as a means to argue for restricting or eliminating the welfare state.  You decide who is more opposed to the welfare state. 

CIS claims that welfare use rates for immigrants are higher because our immigration policy favors poorer family members over higher skilled workers.  That point would be noteworthy if CIS supported skilled immigration – which they don’t.  CIS opposes skilled immigration, making their complaint that immigrants are not skilled enough seem like merely a rhetorical play rather than a serious argument.

Camarota’s response was as unsatisfying as his initial report.  He impugns my motives, broadly misrepresents my positions on immigration, and responded to strawmen with only a vague resemblance to my actual criticisms rather than taking on the criticisms directly.  Frankly, I’m disappointed because CIS and Cato readers deserve a real debate on this issue.  

Employers Ignore E-Verify

Alabama, Arizona, Mississippi, and South Carolina have mandated E-Verify for all new hires in their state (see Table 1), which means that every time an employee is hired the employer must use the E-Verify system to check the worker’s ability to legally work.  In our recent Cato Institute policy analysis, Jim Harper and I document that employers are not using E-Verify despite the mandates in those states.  Washington Examiner reporter Sean Higgins wrote an excellent piece expanding on our findings.

Table 1 

E-Verify Mandate Dates





South Carolina





Donald Trump on Immigration: Same Anti-Immigration Ideas, New Salesman

Donald Trump’s newly released position paper on immigration is the precise mix of fantasy and ignorance that one has come to expect from the recently self-described Republican.  Specifically, his position paper reads like an outline of this April op-ed by Senator Jeff Sessions (R-AL).  Trump is still a candidate in the GOP primary supported mainly by older white men who are not particularly conservative.  Although the electorate has never been more supportive of expanding legal immigration, Trump has never been more opposed.

Trump’s position paper attempts to lay the foundation for his immigration policy as president. Below, I review how his ideas measure up. Quotes from his paper are in quotes, my responses follow.

Here are the three core principles of real immigration reform:

  1. A nation without borders is not a nation. There must be a wall across the southern border.
  2. A nation without laws is not a nation. Laws passed in accordance with our Constitutional system of government must be enforced.
  3. A nation that does not serve its own citizens is not a nation. Any immigration plan must improve jobs, wages and security for all Americans.

The first sentence is true by definition, but assumes that for a border to be real, it must have a wall around it. Whether a wall is warranted should depend on the circumstances at the border, which are vastly more safe than Trump claims. 

The last two principles are vague enough that they could support any immigration policy from a total ban on immigration to open borders. The rest of his position paper narrows their focus.

U.S. taxpayers have been asked to pick up hundreds of billions in healthcare costs, housing costs, education costs, welfare costs, etc. Indeed, the annual cost of free tax credits alone paid to illegal immigrants quadrupled to $4.2 billion in 2011.

This analysis factors in only fiscal costs, which will always lead to negative fiscal outcomes. It ignores the fiscal benefits that come from a larger economy.  The fact remains that poor immigrants use less welfare than poor Americans.  They contribute mightily to Social Security, Medicare, and other portions of the U.S budget.  Over time, immigration’s impact on the U.S. taxpayer is about a net-zero.  In other words, immigrants and their descendants pay for themselves. 

Immigration can turn fiscally positive by further restricting welfare access.  Right now illegal immigrants do not have access to means tested welfare programs, but their American born children do.  However, their benefit levels are adjusted downwards to account for the non-eligible members of their households.  Short of lowering welfare benefit levels for everybody, which would be a positive move, the government cannot deny citizens access based on who their parents are.  However, Congress can deny all non-citizens access to welfare.  Cato has published the only guide of how to do that. Removing the Earned Income Tax Credit for unauthorized or other categories of non-citizens would also be easy.

The position paper doesn’t factor in the estimated $400 to $600 billion government cost of removing all unauthorized immigrants as well as the lost tax revenue from the subsequently smaller economy.  Doing so reveals how fiscally damaging this immigration plan would be if it ever became law. 

The effects on jobseekers have also been disastrous …

The influx of foreign workers holds down salaries, keeps unemployment high, and makes it difficult for poor and working class Americans – including immigrants themselves and their children – to earn a middle class wage.

There is a lot of research on whether immigrants displace Americans in the job market – and the general finding is that immigrants displace very few American workers.