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A Profile of Low-Income Working Immigrant Families An Urban Institute New Federalism Program to Assess National Survey of America’s Families Changing Social Policies THE URBAN INSTITUTE Series B, No. B-67, June 2005 A Profile of Low-Income Working Immigrant Families Randy Capps, Michael Fix, Everett Henderson, and Jane Reardon-Anderson Immigrants are a large and growing part of While children of immigrants exhibit high America’s labor force. They accounted for levels of need for public benefits and ser- half the growth in the U.S. workforce dur- vices, current laws restrict immigrant ing the 1990s (Sum, Fogg, and Harrington eligibility for many major federal and state- 2002). In 2001, immigrants were 11 percent funded programs. Undocumented immi- of the U.S. population, but 14 percent of all grants are generally ineligible for all public workers and 20 percent of low-wage work- benefits except emergency health services. Like other low-income ers in the U.S. economy (Capps, Fix et al. The 1996 welfare reform law restricted 2003).1 Immigrants are overrepresented many legal immigrants’ eligibility for these working families, among all U.S. workers but especially programs as well (Fix and Passel 2002). immigrant families among lower-paid workers. Despite significant benefit restorations Many Americans work hard yet strug- in 1997 and 2002, most legal immigrants need income, food, and gle to pay bills and provide for their chil- with less than five years of residency in the dren (Acs, Ross Phillips, and McKenzie United States are ineligible for cash wel- housing assistance, as 2000). Immigrant families are no exception, fare, food assistance, public health insur- well as health coverage since such a high share of immigrant work- ance, housing assistance, and other major ers earns low wages. In 2001, one-quarter federal benefits (National Immigration Law and child care. of all children living in low-income families Center 2002).3 Although over three-quarters had one or more foreign-born parents (Fix, of children in immigrant families are U.S. Zimmermann, and Passel 2001). Almost citizens and therefore not subject to these half (47 percent) of all low-income immi- eligibility bars (Capps 2001), their access to grant families fit our definition of working benefits may be affected by their parents’ families, where adults on average worked lack of citizenship, as well as other factors at least part-time (1,000 hours) in 2001.2 including language barriers, cultural mis- For low-income native families, this rate understandings, and fear of interaction is 40 percent. These figures suggest that with government agencies (Rodriguez, unemployment, underemployment, and Hagan, and Capps 2004). episodic employment are common for In previous studies, we profiled immi- low-income families headed by both immi- grant workers. In this brief we extend that grants and natives. analysis to benefit and service use among Despite similar levels of work effort families of immigrant workers with chil- among their parents, children of immi- dren. Our analyses are based on data from grants are substantially more likely than the 2002 National Survey of America’s children with U.S.-born parents to be Families (NSAF).4 The benefits examined poor, have food-related problems, live in here include the Earned Income Tax Credit, crowded housing, lack health insurance, cash welfare, food stamps, housing and be in fair or poor health (Capps 2001; assistance, health insurance coverage, Reardon-Anderson, Capps, and Fix 2002). and child care. 1 ASSESSING THE NEW FEDERALISM An Urban Institute Program to Assess Changing Social Policies Defining Low-Income Poverty in Working low-income working immigrant fami- Working Immigrant Families Immigrant Families lies were significantly less likely than native families to have heard about Our focus in this brief is on families In 2001, one-quarter of all low- the EITC or to have received it in the that include working adults, specifi- income working families were immi- past three years (figure 2).7 Seventy- cally those with family incomes grant families. Working immigrant nine percent of native families had below twice the federal poverty level families were about twice as likely as heard about the EITC, about three (FPL) in 2001 and with adults who on working native families to be either times the share for immigrant fami- average worked at least part-time low-income (under 200 percent of lies (26 percent). Native families were (1,000 hours) during 2001.5 Our def- FPL) or poor (under 100 percent of about four times as likely as immi- inition of working families includes FPL). Forty-two percent of immi- grant families to report receiving the four groups: grant families were low-income, com- EITC during 1999–2002 (57 versus pared with 21 percent of native 14 percent). Ⅵ single-parent families in which the families, and 12 percent of immigrant These figures do not tell the families were poor, compared with whole story, however. Many low- parent worked at least part-time 5 percent of native families (figure 1).6 income working families may have for 1,000 hours; received the EITC without being able Ⅵ two-parent families in which both Public Benefit Participation to identify the program by name, par- parents worked part-time for a ticularly if someone else (such as a total of 2,000 hours or more; Despite higher levels of economic community organization worker or a Ⅵ two-parent families in which one hardship, low-income working im- paid tax preparer) filled out their tax parent worked full-time (at least migrant families are less likely than return.8 If we assume that all families 2,000 hours) and the other parent native families to report receiving receiving assistance in preparing their did not work at all; and public benefits in four major areas: tax return also received the EITC, Ⅵ a small number of families with tax credits, income assistance, food then the gap between immigrants 9 three or more working adults, in assistance, and housing subsidies. and natives narrows considerably. In which the adults on average 2002, 83 percent of low-income native worked at least 1,000 hours in families either had their taxes pre- 2001. Earned Income Tax Credit pared for them or received the EITC within the past three years, com- As a result of policy changes over the pared with 68 percent of immigrant We classify families where the past 15 years, the Earned Income Tax families. In other words, our upper highest earner was born outside the Credit (EITC) has grown from a rela- bound estimate of working immi- United States as “immigrant” families tively small program into one larger grant families’ EITC receipt com- and those where the highest earner than TANF, food stamps, or SSI bines those who reported receiving was U.S.-born as “native” families. (Blank and Schmidt 2001). In 2002, the benefit and those who used tax preparers. Our upper bound estimate is FIGURE 1. Low-Income and Poverty Rates for Working Families, 2001 close to overall EITC receipt levels found in recent studies. For instance, Burman and Kobes (2003) show that between 80 and 86 percent of eligible families with children took advantage Immigrant families 30 12 42 of the EITC from 1990 to 1999, and Berube and Tiffany (2004) conclude that about 15 to 20 percent of tax fil- ers who are eligible for the EITC did not claim it in 2001.10 Income100%–200% Regardless of how EITC receipt is Native families 165 21 of FPL measured, our findings show a signif- Income below 100% of FPL icant gap between low-income work- ing immigrant and native families. 0 1020304050Lower EITC receipt among immi- Percent grants is explained in part by legal status, as 29 percent of immigrant Source: Authors’ calculations using the 2002 National Survey of America’s Families. workers are undocumented and Notes: Working families are families with children in which adults worked at least 1,000 hours on average in 2001. Low income is income below 200 percent of the federal poverty level (FPL) or the sum of the light and dark gold sec- therefore ineligible for the EITC tions of the bars. All differences between immigrant and native families are statistically significant at the p < .05 level. (Capps, Fix et al. 2003).11 Lower EITC 2 An Urban Institute Program to Assess Changing Social Policies ASSESSING THE NEW FEDERALISM (Capps 2001), but many of their par- FIGURE 2. Earned Income Tax Credit Receipt among Low-Income Working Families, 2002 ents are undocumented or legal im- migrants who are ineligible for these Immigrant families benefit programs. Food stamp use 26 Native families Heard about EITC by noncitizens and their children is 79 lower than for the total eligible popu- lation: in 2001, only 40 percent of eli- Heard about and 14 gible noncitizens and 34 percent of received EITC within citizen children living with noncitizen past three years 57 adults participated in the Food Stamp Program, compared with 62 percent Had taxes prepared or 68 received EITC within of all eligible individuals (Cunnyng- past three years 83 ham 2003). 0204060 80 100 Percent Housing Assistance Source: Authors’ calculations using the 2002 National Survey of America’s Families. Low-income immigrant families were Notes: Low-income working families are families with children, incomes below 200% of the federal poverty level, also less likely to have received hous- and adults who worked at least 1,000 hours on average in 2001. EITC = Earned Income Tax Credit. All differences between immigrant and native families are statistically significant at the p < .05 level. ing assistance from public sources in 2002 (15 versus 24 percent, as shown in figure 3). The NSAF asked respon- dents whether the government pays receipt among immigrants may also and state child care subsidies.
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