Unauthorized Immigration: A Mixed Bag for the Economy
Recent debates surrounding immigration have focused on both its positive and negative impacts. One of the key concerns has been the large number of unauthorized immigrants, estimated to be around 14 million for the years 2021-2024.
A new study by the Federal Reserve Bank of Dallas aimed to address some of these concerns by examining the economic effects of unauthorized immigration in two main areas: the labor market and the housing market. The researchers used data from 2021 to 2025, during which they found that total employment rose directly with an increase in unauthorized immigrants.
This means that jobs were either created or filled by these immigrants, rather than replacing existing workers. Interestingly, wages did not decrease as a result of this influx, suggesting that the new arrivals took on new or vacant positions and didn't compete with those already employed.
Another positive finding from the study was an increase in public revenues due to the filling of new or vacant jobs. Additionally, total public social support payments actually decreased during this period.
However, there was a downside: home prices and rents increased significantly during the surge in unauthorized immigration. This is likely due to the limited supply of residential units and the competition for existing housing when large numbers of new households are added to the population.