Unauthorized Immigration Boosts Employment, Revenue, Despite Housing Costs
A recent study by the Federal Reserve Bank of Dallas sheds light on the economic impacts of unauthorized immigration in the US. The study, which analyzed data from 2021 to 2025, found that an increase in unauthorized immigrants resulted in a direct rise in total employment. Jobs were either created or filled by these immigrants, with no substitution for existing workers.
Interestingly, wages did not decrease due to the influx of unauthorized immigrants. This is likely because they took new or unfilled jobs, thereby not competing with existing workers. The study also found that public revenues increased as a result of the filling of new or vacant jobs.
However, there was a downside: home prices and rents rose during the surge in unauthorized immigration. This is due to the limited supply of residential units, which leads to increased competition for existing units when new households are added to the population.