Literature Review on the Economic Consequences of the Deportation of Unauthorized Immigrants

Abstract

This paper reviews the literature on the economic consequences of the deportation of unauthorized immigrants from the United States. It reviews research on the economic effects of immigration in general, but focuses on empirical studies of the effects of deportation. It summarizes studies of the effects of both inflows and outflows of immigrants on the size of the U.S. economy, the employment and wages of U.S.-born citizens, and the fiscal consequences in terms of taxes and public spending. The survey illustrates the evolution in the theoretical and empirical findings of the deportation related research. The findings of the most recent studies are that the deportation of unauthorized immigrants would shrink the U.S. economy, cause American workers to lose jobs, reduce the wages of U.S. citizens, lose the taxes paid by deported unauthorized immigrants and worsen the finances of federal, state and local governments.

Keywords: Immigration, Deportation, Unauthorized Immigrants, Employment, Wages, Fiscal effects

JEL Classification: J2, J61, F22, K37