Thread: Study: Illegals depress wages by $1.4 billion in Arizona

Monday, January 7, 2008 - 4:43 PM MST
Study: Illegals depress wages by $1.4 billion in Arizona

The Business Journal of Phoenix - by Mike Sunnucks

Illegal immigrants depressed wages in Arizona to the tune of $1.4 billion in 2006 and dipped lower-skilled legal workers' pay by 4.7 percent.

That is according to a study by a Harvard University economist commissioned by the Maricopa County Attorney's Office. The MCAO had the study done as part of its defense of the state's new employer sanctions law.

Business and Hispanic groups have challenged that law questioning its validity and arguing it would hurt the state's economy.

The study by Harvard economist George Borjas said hiring illegal immigrants depresses wages because they work for lower pay and sometimes are paid under the table. The study said illegal immigrants primarily impact wages and jobs held by legal workers with lower education levels. Borjas said that illegals make up 10 percent of all state workers and decrease all wages by 1.5 percent.

The study did not look at the economic benefits of immigrants, such as the taxes paid or whether the lower wages result in lower costs for food and other items.

Employers say they hire illegals for a host of reasons including that they are unable to find legal employees to take certain jobs and that immigrants' have a better work ethic than legal workers. Sanctions law backers say businesses hire illegals because they offer cheap labor.

Maricopa County Attorney Andrew Thomas said the report has been filed with U.S. District Court Judge Neil Wake, who is hearing the sanctions law case. Thomas supports the law.

The U.S. Chamber of Commerce, Arizona Contractors Association, Arizona Chamber of Commerce & Industry and Arizona Restaurant & Hospitality Association are among the business groups challenging it in federal court.

Wake, in recent rulings on the sanctions law, has voiced support for the argument that hiring illegals hurts legal working-class employees.

A University of Arizona study published in October concluded that illegal immigrants had a net fiscal benefit of $940 million to $1 billion. The UA study found that illegals paid about $2.4 billion in various taxes but cost the state about $1.4 billion in services.

The sanctions law suspends or revokes the business licenses of employers caught knowingly hiring illegals.

http://www.bizjournals.com/phoenix/stor ... ily17.html

A University of Arizona study published in October concluded that illegal immigrants had a net fiscal benefit of $940 million to $1 billion. The UA study found that illegals paid about $2.4 billion in various taxes but cost the state about $1.4 billion in services.


I FIND this hard to believe. paying in more than taking out...
YEAH whatever

A University of Arizona study published in October concluded that illegal immigrants had a net fiscal benefit of $940 million to $1 billion. The UA study found that illegals paid about $2.4 billion in various taxes but cost the state about $1.4 billion in services.

I don't believe period.

How much money was sent out of the county in remittances and money orders from AZ last year?

Fences make good neighbors.

I don't believe it either.

That sounds like a similar report I saw about the illegals here in TExas - they even told how much the illegal spent on the state lottery.

I had to laugh. They don't know how many are here, where they are, if they have insurance, if they work, how many are in school, etc. - but they do know how much they spend on the lottery.

The people who put these out are either really not smart - or they think we aren't.

ITS A DIVERSION TO SAY THAT ILLEGALS PAY MORE TAX THAN THE SERVICES THEY USE. I BET THAT INCLUDES SALES TAX. BUT THEY ARE STILL HERE ILLEGALLY. ALL LAW BREAKERS PAY SALES TAX....THAT IS NO REASON TO LET THEM CONTINUE TO BREAK THE LAW. WHEN OTHER LAW BREAKERS ARE SENT TO JAIL IT IS NEVER CONSIDERED HOW MUCH SALES TAX WILL BE LOST. I THINK TO BALANCE A STUDY LIKE THIS, A STUDY SHOULD BE DONE ON HOW MUCH TAX, INCLUDING SALES TAX, ALL LAWBREAKERS PAY VERSUS THE SERVICES THEY USE. ARE WE GOING TO GIVE AMNESTY TO ALL LAWBREAKERS INSTEAD OF SENDING THEM TO JAIL?

How can they know how much sales tax they pay? That's impossible.

If they knew how much sales tax they pay - or any other tax - then the argument of 'we don't know if they are illegal' holds no water. Same as the 'we don't know where they all are'.

These are made up stories - guesstimations - fabrications, if you will.

We can get the figures of how wages have decreased, how taxes have increased, how healthcare has increased, etc., because legal Americans are paying those and there are records of it.

Not so with the illegals -

Who cares how much sales tax they paid! Everyone pays sales tax. should the tourist from Germany qualify for citizenship simply because he bought a six pack and a loaf of bread while here on vacation. That's how idiotic that argument is.

In addition, The argument that illegals pay into the social security system through fradulent documents and thus should be entitled to SS Benefits.

Under similiar logic, the guy who steals your car should be entitled to the proceeds from the sale of the car irrescpective of the fact the car never belonged to him in the first place.

This is how crazy the arguemnts are from those who are pro-illegal.

A University of Arizona study published in October concluded that illegal immigrants had a net fiscal benefit of $940 million to $1 billion. The UA study found that illegals paid about $2.4 billion in various taxes but cost the state about $1.4 billion in services.

I so agree with you NoBueno

It's sheer Propoganda! Am so sick of hearing this tripe.
If illegal immigrants are paying so much in SALES tax that would mean they are purchasing items, and in large quanities, that citizens can't afford due to high taxes.


"The State Department reminds U.S. citizens to avoid participating in demonstrations and other activities that might be deemed political by Mexican authorities. The Mexican Constitution prohibits political activities by foreigners, and such actions may result in detention and/or deportation."
U.S. State Department