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Illegal Immigrants and Refugees--Their Economic Adaptation and Impact on Local U.S

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Illegal Immigrants and Refugees--Their Economic Adaptation and Impact on Local U.S DOCUMENT RESUME ED 301 389 RC 016 843 AUTHOR Ainsworth, Robert G. TITLE Illegal Immigrants and Refugees--Their Economic Adaptation and Impact on Local U.S. Labor Markets: A Review of the Literature. INSTITUTION National Commission for Employment Policy (DOL), Washington, D.C. REPORT NO NCEP-RR-86-22 PUB DATE Oct 86 NOTE 78p.; For related document, see ED 268 351. PUB TYPE Information Analyses (070) EDRS PRICE MF01/PC04 Plus Postage. DESCRIPTORS Case Studies; *Community Change; Economic Opportunities; Foreign Workers; Literature Reviews; *Refugees; *Socioeconomic Influences; Socioeconomic Status; *Undocumented Immigrants IDENTIFIERS *Economic Impact; Economic Impact Studies; * Immigration Impact; Refugee Resettlement ABSTRACT This paper presents a review of existing case study literature on the local and regional impacts of illegal immigrants and refugees in the United States. This report 4s a part of the second phase of the National Commission for Employment Policy's long-term work plan "Changes in the Workplace." While there is an enormous amount of literature on the undocumented population, research on this group and the analysis of it have been stymied by the clandestine nature of migration and by problems in using national data. By comparison, there has been little research on refugees, particularly before the palsage of the Refugee Act of 1980. The case study literature on refugees concentrates primarily on Southeast Asians. The review of the literature in this paper also concerns the economic and social adaptation of refugees and undocumented workers. In reference to refugees, the report details 6 recommendations on the following topics:(1) English language skills; (2) use of public assistance; (3) types of services available;(4) support systems; (5) U.S. placement policy; and (6) quality of immigration statistics. The report is intended as a broad survey of the literature, rather than as r- independent evaluation and critique of A nine-page bibliography is provided. (TES) Reproductions supplied by EDRS are the best that can be made from the original document. A Ch Co pr\ CI O14\ LA.1 ILLEGAL IMM'GRANTS AND REFUGEES -- THEIR ECONOMIC ADAPTATION AND IMPACT ON LOCAL U.S. LABOR MARKETS: A REVIEW OF THE LITERATURE by ROBERT G. AINSWORTH October 1986 RR-86-22 RESEARCH REPORT SERIES NATIONAL COMMISSION FOR EMPLOYMENT POLICY 1522 K STREET, N.W. WASHINGTON, D.C. 20005 U. DEPARTMENT Of EDUCATION "PERMISSION TO REPRODUCE THIS Mao o Educational Reearch and Improvement MATERIAL HAS BEEN GRANTED BY EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) Pe, seAT6 la'document has been reproduced as received from the person Or organization originating it A 1/Y 5Wola 0 Mon Or chanjeS have been made to improve raproductiOn quality Points Of view or opinions slated in this dOcu TO THE EDUCATIONAL RESOURCES mint du not necessarily represent Otfic.s1 INFORMATION CENTER (ERIC)" OERI position or policy C0 In1, 02 t§% eM =cri I DO tg) c.5 ocPoi BEST COPY AVAILABLE CONTENTS Page Preface Executive Summary ii Introduction 1 I. Economic and Social Adaptation 5 A. How Well Undocumented Aliens and Refugees Have Adapted 5 Size and Location of Groups 5 Labor Market Experiences 11 Summary 16 B. Factors Which Affect Economic and Social Adaptation 17 Public Assistance Programs 17 Training and Employment Services 18 Economic Conditions 18 Socio-economic Characteristics 19 Community Organizations and Networking 21 Length of Stay ;.... 2 Summary 27 II. Impacts of Undocumented Aliens and Refugees on Local Communities 29 A. Impacts on Labor Markets 29 Displacement of Resident U.S. Workers 31 Job Creation 34 Impact on Wages and Working Conditions 36 Summary 39 3 ii Page B. Impact on Public Service Programs 39 Income Transfer Programs 42 Education 43 Health Services 45 cummary 47 C. Methods Used in Alleviating Negative Impacts 47 Summary 50 III. Conclusions and Recommendations 51 Notes 56 Bibliography 57 4 ( iii PItIEFACE This report presents a review of the literature on the economic and social adaptation of illegal immigrants and refugees and the impacts these groups have on local U.S. communities.As a staff member for the Commission's "Changes in the Workplace" work group, the author prepared this paper for the purpose of providing input into its investigation of how U.S. employment and training policies can help to improve U.S. competitiveness. Immigration is one of three dimensions being considered in the Commission's analysis the effects on employment of the internationalization of the U.S. economy. Commission staff members Carol Romero, Stephen Baldwin, Sara Toye, and Nancy ReMine Trego have provided constructive comments. In addition, the author also thanks several other reviewers for their comments on a draft of this paper: Gregory B. Smith, Executive Assistant to the Deputy Commissioner, Immisration and Naturalization Service (INS); Janelle Jones, Office of Plans and Analysis, INS; Linda Gordon, Office of Refugee Resettlement, U.S. Department of Health and Human Services; Marion Houstoun, International Liar Affairs Bureau, U.S. Department of Labor; Davi North, New TransCentury Foundation, Washington, D.C.; and Tom Muller and Demetrios G. Pepademetriou, Population Associates International, Fairfax, Virginia. The findings and conclusions of this study as well as the interpretation of the literature contained herein are those of the author alone and should not be construed as representing the views of the reviewers, the Commission or its staff. 5 V ILLEGAL IMMIGRANTS AND REFUGEES -- THEIR ECONOMIC ADAPTATION AND IMPACT ON LOCAL U.S. LABOR MARKETS: REVIEW OF THE LITERATURE Executive Summary This paper presents a review of existing case study literature on the local and regional impacts of illegal immigrants and refugees in the United States. As part of the Commission's long-term workplan on "Changes in the Workplace," this report along with two studies sponsored by the Commission will provide input into the second phase of the project, which is investiga- ting how employment and training policies may help to improve U.S. competitiveness. The Commission has coLipleted its first project in this workplan with the Spring 1986 publication of Computers in the Workplace: Selected Issues. While there is an enormous amount of literature on the undocumented population, research on this group and the analysis of it are stymied by the clandestine nature of the migration and problems in using national data. By comparison, there has been little research on refugees, particularly before the passage of the Refugee Act of 1980.The case study literature on refugees concentrates primarily on Southeast Asians. The review of the literature in this paper concerns the economic and social adaptation of refugees and undocumented workers and their impacts on local communities. It is intended as a broad survey of the literature, rather than as an indepEndent evaluation and critique of it. Economic and Social Adaptation How Well Ille al Immigrants and Refu ees Have Adapted. Wnce the Statue of Liberty was dedicated a hundred years ago, the composition of those legally entering the United States has changed. In 1886, Europeans accounted for 90 percent 02 the immigrants coming to this nation, whereas in 1985, Asians made up nearly half, Latin Americans 40 percent, and Europeans only 5 percent. In addition to legal immigrants, there are an estimated 4 million to 6 million undocumented aliens in this country, slightly more than half of whom are from Mexico. About half of the illegal population live in California. The general lack of literature on the economic adaptation of undocumented aliens is probably due to the fact that they are in this country illegally and are difficult to track in the workplace. The U.S. has admitted nearly two million refugees since the 'end of World War II, mostly from the Communist-dominated countries.Southeast Asians, with the Vietnamese being the largest group, have dominated the more recent arrivals. At the end of Fiscal Year 1985, there were approximately 760,000 Southeast Asian refugees in this country.While the Southeast Asians 6 vi predominate among refugee arrivals since 1975, Cubans remain the largest group admitted since the Second World War, totaling about 800,000. Where refugees live in the U.S. is determined by initial placement and secondary migration. U.S. refugee placement policy through 1975 was aimed at dispersing refugees throughout the country so as to minimize their impacts on the receiving communities and to hasten their self-sufficiency.After 1975, placement policy for the majority of refugees was based on family reunification which does not lead to widespread dispersal. After initial placement in this country, many refugees migrate to other areas within the United States.One cause of this secondary migration appears to be the availability of higher public assistance benefit levels in some States. Other factors relate to the availability of work, the desire of refugee groups to live among people from their homeland and the preference for a warm climate. As is the case with undocumented aliens, California is the State in which the largest number of Southeast Asian refugees reside, accounting for about AO percent in FY 1985. Economic self-sufficiency -- measured by labor force participation and employment rates, earnings and use of public assistance programs -- affects not only the lives of the refugees but also the cost of the resettlement program, the U.S. labor market, and ultimately the receptivity of the United States to refugees. The prospects for refugee self-sufficiency appear promising in the long-run; but during the early period in this country, they experience low labor force participation, high unemployment, large numbers below the poverty level, and substantial reliance on public assistance programs. The pattern of occupational mobility revealed by recent research on refugees is similar to that found in research on immigrants. Many studies document that immigrants coming from a high socio-economic status in their countries of origin initially take jobs that are lower in status; but with time their status increases until it reaches or surpasses former levels.
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