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Economic Impacts of Immigrants in Boston
Monday, April 28, 2014
Key Components of Immigration Reform:
Federal, State and Regional Lens
Rod Motamedi, Senior Economic Associate
Chris Judson, Associate Economist
what does REMI say? sm
Timeline
what does REMI say? sm
Nov 2012 – POTUS mentions Immigration Reform
in his election victory speech
Jan 2013 – POTUS highlights Immigration Reform
in his SOTU address
Jan 2013 – Bipartisan group of Senators release
plan to address Immigration Reform
Jun 2013 – Senate Bill passes, considered dead on
arrival in House
Oct 2013 to Present – On and off Policy Agenda
Policy Question
What is the effect of
immigration reform
on the broader economy,
both at the national and
state levels?
What does this mean for Boston?
what does REMI say? sm
Key Components of
Immigration Reform
Creating a Pathway to Legal Status
Effects of incorporating the more than 11 million
undocumented immigrants into the formal economy
Expanding High-Skilled Visas
Increasing cap on H-1B Visa issuance
In national report but not included today
Reforming Lesser-Skilled Visas
H-2A (temporary or seasonal agricultural work)
H-2B (nonagricultural seasonal, intermittent or peak load work)
W-1 (lesser-skilled, nonagricultural work)
what does REMI say? sm
Approach to Modeling
Goal was to understand the effect on the greater
national and state economies.
This study is unique in showing comprehensive
macroeconomic impacts for all states and across all
industry sectors on an annual basis.
Applied MA immigration totals with PI+ BRA model
baseline data to understand regional effects based
on employment shares
what does REMI say? sm
Key Finding
All states see significant growth in
major indicators such as GDP and
total jobs for each component of
immigration reform examined.
what does REMI say? sm
Pathway to Legal Status
what does REMI say? sm
Approach to Analyze Pathway
No increase in workforce or population
Increase in labor productivity
Indirectly modeled
Increase in wages
Accounted for labor costs to businesses
what does REMI say? sm
Summary Pathway Findings
Increased jobs and income
Increased job opportunities for existing U.S.
workers
Increased real income per capita for Americans
Increases in construction for housing- and
consumption-related industries in particular
All states see increases due to economic linkages
between the states
what does REMI say? sm
National Results
Pathway to Legal Status
In 2014, providing a pathway to legal status will
produce a total of 123 thousand jobs as well as
add approximately $10 billion to GDP.
By 2020, it is estimated that the result of the
expansion will be 551 thousand jobs and the
increase in GDP will total $45 billion.
what does REMI say? sm
Change in Employment
from Baseline 2020
Key Industries
Pathway to Legal Status
Job gains are across diverse industry sectors. The
industries listed below, organized by total job gains,
represent over 50% of the total job gains for the
nation as a result of this change in policy.
Retail Trade 15%
Construction 15%
Ambulatory Health Care Services 12%
Administrative and Support Services 6%
Professional, Scientific, and Technical Services 5%
what does REMI say? sm
Boston – Pathway
what does REMI say? sm
0
1,000
2,000
3,000
4,000
5,000
6,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Jobs
Employment Impact
Suffolk County
Four County Region
Rest of MA
Boston – Pathway
what does REMI say? sm
Suffolk County Top Employment by
Industry 2020
Hospitals 318
Securities, commodity contracts,
investments 168
Ambulatory health care services 160
Professional, scientific, and technical
services 153
Educational services 128
Retail trade 103
Administrative and support services 91
Food services and drinking places 80
Construction 73
Personal and laundry services 51
Boston – Pathway
what does REMI say? sm
Gross Regional Product (Millions of Fixed 2014 $)
2020
Suffolk County GRP $205 Million
22 percent of total MA GSP impact
2030
Suffolk County GRP $168 Million
21 percent of total MA GSP impact
Negligible, slightly negative population effects
Boston – Pathway
what does REMI say? sm
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
MillionsofFixed2014$
Personal Income Impact
Suffolk County
Four County Region
Rest of MA
Visa Expansion & Reform
what does REMI say? sm
Approach to Analyze Visas
Increase in jobs and international migrants
Provides workers for U.S. industry expansion
Economic expansion driven by increased business
competitiveness
what does REMI say? sm
Summary of Visa Reforms
Increased jobs and income
Increased job opportunities in income per capita
for existing U.S. workers
Increase in jobs through firm expansion and
increased production
All states see increases due to economic linkages
Expanding economic pie benefits existing U.S
workers
what does REMI say? sm
High-Skilled Visas
what does REMI say? sm
National Results
High-Skilled Visa Expansion
In 2014, expansion of high-skilled visas will
produce a total of 227 thousand jobs as well as
add approximately $22 billion to GDP.
By 2020, the expansion creates approximately 408
thousand jobs and increases GDP by $41 billion.
what does REMI say? sm
Change in Employment from
Baseline 2020
Key Industries
High-Skilled Visa Expansion
Job gains are not only concentrated in industries
with high H-1B issuance. The industries listed below,
organized by total job gains, represent over 50% of
the total job gains for the Nation as a result of this
change in policy.
Professional, Scientific, and Technical Services 18%
Construction 8%
Retail Trade 7%
Food Services and Drinking Places 7%
Administrative and Support Services 7%
Educational Services 4%
what does REMI say? sm
Key Findings
High-Skilled Visa Expansion
The economic benefits are not restricted to
states that receive large shares of H-1B Visa
issuance.
For every visa issued, it creates anywhere
from 2 to more than 8 new jobs depending on
the state.
High-Skilled Visas have a high impact on
economy.
what does REMI say? sm
Boston – H-1B
what does REMI say? sm
0
2,000
4,000
6,000
8,000
10,000
12,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Jobs
Employment Impact
Suffolk County
Four County Region
Rest of MA
Boston – H-1B
what does REMI say? sm
Suffolk County Top Employment by
Industry 2020
Professional, scientific, and technical
services 556
Educational services 242
Hospitals 224
Food services and drinking places 176
Administrative and support services 123
Securities, commodity contracts,
investments 103
Retail trade 90
Real estate 68
Construction 62
Membership associations and
organizations 57
Boston – H-1B
what does REMI say? sm
Gross Regional Product (Millions of Fixed 2014 $)
2020
Suffolk County GRP $348 Million
22 percent of total MA GSP impact
2030
Suffolk County GRP $556 Million
21 percent of total MA GSP impact
Boston – H-1B
what does REMI say? sm
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Individuals
Population Impact
Suffolk County
Four County Region
Rest of MA
Boston – H-1B
what does REMI say? sm
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
MillionsofFixed2014$
Personal Income Impact
Suffolk County
Four County Region
Rest of MA
Concluding Remarks
The immigration policies we evaluated promote
economic growth.
The economic growth is broad based across states
and industries.
Existing American workers have increased
employment opportunities and incomes.
Immigration reform in Boston, benefits
surrounding counties rest of state- counterfactual
approach
what does REMI say? sm
Thank You
http://www.remi.com/immigration-report
@REMIeconomics
www.remi.com
what does REMI say? sm

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Key Components of Immigration Reform: Federal, State and Regional Lens

  • 1. Economic Impacts of Immigrants in Boston Monday, April 28, 2014 Key Components of Immigration Reform: Federal, State and Regional Lens Rod Motamedi, Senior Economic Associate Chris Judson, Associate Economist what does REMI say? sm
  • 2. Timeline what does REMI say? sm Nov 2012 – POTUS mentions Immigration Reform in his election victory speech Jan 2013 – POTUS highlights Immigration Reform in his SOTU address Jan 2013 – Bipartisan group of Senators release plan to address Immigration Reform Jun 2013 – Senate Bill passes, considered dead on arrival in House Oct 2013 to Present – On and off Policy Agenda
  • 3. Policy Question What is the effect of immigration reform on the broader economy, both at the national and state levels? What does this mean for Boston? what does REMI say? sm
  • 4. Key Components of Immigration Reform Creating a Pathway to Legal Status Effects of incorporating the more than 11 million undocumented immigrants into the formal economy Expanding High-Skilled Visas Increasing cap on H-1B Visa issuance In national report but not included today Reforming Lesser-Skilled Visas H-2A (temporary or seasonal agricultural work) H-2B (nonagricultural seasonal, intermittent or peak load work) W-1 (lesser-skilled, nonagricultural work) what does REMI say? sm
  • 5. Approach to Modeling Goal was to understand the effect on the greater national and state economies. This study is unique in showing comprehensive macroeconomic impacts for all states and across all industry sectors on an annual basis. Applied MA immigration totals with PI+ BRA model baseline data to understand regional effects based on employment shares what does REMI say? sm
  • 6. Key Finding All states see significant growth in major indicators such as GDP and total jobs for each component of immigration reform examined. what does REMI say? sm
  • 7. Pathway to Legal Status what does REMI say? sm
  • 8. Approach to Analyze Pathway No increase in workforce or population Increase in labor productivity Indirectly modeled Increase in wages Accounted for labor costs to businesses what does REMI say? sm
  • 9. Summary Pathway Findings Increased jobs and income Increased job opportunities for existing U.S. workers Increased real income per capita for Americans Increases in construction for housing- and consumption-related industries in particular All states see increases due to economic linkages between the states what does REMI say? sm
  • 10. National Results Pathway to Legal Status In 2014, providing a pathway to legal status will produce a total of 123 thousand jobs as well as add approximately $10 billion to GDP. By 2020, it is estimated that the result of the expansion will be 551 thousand jobs and the increase in GDP will total $45 billion. what does REMI say? sm
  • 11. Change in Employment from Baseline 2020
  • 12. Key Industries Pathway to Legal Status Job gains are across diverse industry sectors. The industries listed below, organized by total job gains, represent over 50% of the total job gains for the nation as a result of this change in policy. Retail Trade 15% Construction 15% Ambulatory Health Care Services 12% Administrative and Support Services 6% Professional, Scientific, and Technical Services 5% what does REMI say? sm
  • 13. Boston – Pathway what does REMI say? sm 0 1,000 2,000 3,000 4,000 5,000 6,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Jobs Employment Impact Suffolk County Four County Region Rest of MA
  • 14. Boston – Pathway what does REMI say? sm Suffolk County Top Employment by Industry 2020 Hospitals 318 Securities, commodity contracts, investments 168 Ambulatory health care services 160 Professional, scientific, and technical services 153 Educational services 128 Retail trade 103 Administrative and support services 91 Food services and drinking places 80 Construction 73 Personal and laundry services 51
  • 15. Boston – Pathway what does REMI say? sm Gross Regional Product (Millions of Fixed 2014 $) 2020 Suffolk County GRP $205 Million 22 percent of total MA GSP impact 2030 Suffolk County GRP $168 Million 21 percent of total MA GSP impact Negligible, slightly negative population effects
  • 16. Boston – Pathway what does REMI say? sm $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 MillionsofFixed2014$ Personal Income Impact Suffolk County Four County Region Rest of MA
  • 17. Visa Expansion & Reform what does REMI say? sm
  • 18. Approach to Analyze Visas Increase in jobs and international migrants Provides workers for U.S. industry expansion Economic expansion driven by increased business competitiveness what does REMI say? sm
  • 19. Summary of Visa Reforms Increased jobs and income Increased job opportunities in income per capita for existing U.S. workers Increase in jobs through firm expansion and increased production All states see increases due to economic linkages Expanding economic pie benefits existing U.S workers what does REMI say? sm
  • 21. National Results High-Skilled Visa Expansion In 2014, expansion of high-skilled visas will produce a total of 227 thousand jobs as well as add approximately $22 billion to GDP. By 2020, the expansion creates approximately 408 thousand jobs and increases GDP by $41 billion. what does REMI say? sm
  • 22. Change in Employment from Baseline 2020
  • 23. Key Industries High-Skilled Visa Expansion Job gains are not only concentrated in industries with high H-1B issuance. The industries listed below, organized by total job gains, represent over 50% of the total job gains for the Nation as a result of this change in policy. Professional, Scientific, and Technical Services 18% Construction 8% Retail Trade 7% Food Services and Drinking Places 7% Administrative and Support Services 7% Educational Services 4% what does REMI say? sm
  • 24. Key Findings High-Skilled Visa Expansion The economic benefits are not restricted to states that receive large shares of H-1B Visa issuance. For every visa issued, it creates anywhere from 2 to more than 8 new jobs depending on the state. High-Skilled Visas have a high impact on economy. what does REMI say? sm
  • 25. Boston – H-1B what does REMI say? sm 0 2,000 4,000 6,000 8,000 10,000 12,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Jobs Employment Impact Suffolk County Four County Region Rest of MA
  • 26. Boston – H-1B what does REMI say? sm Suffolk County Top Employment by Industry 2020 Professional, scientific, and technical services 556 Educational services 242 Hospitals 224 Food services and drinking places 176 Administrative and support services 123 Securities, commodity contracts, investments 103 Retail trade 90 Real estate 68 Construction 62 Membership associations and organizations 57
  • 27. Boston – H-1B what does REMI say? sm Gross Regional Product (Millions of Fixed 2014 $) 2020 Suffolk County GRP $348 Million 22 percent of total MA GSP impact 2030 Suffolk County GRP $556 Million 21 percent of total MA GSP impact
  • 28. Boston – H-1B what does REMI say? sm 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Individuals Population Impact Suffolk County Four County Region Rest of MA
  • 29. Boston – H-1B what does REMI say? sm $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 MillionsofFixed2014$ Personal Income Impact Suffolk County Four County Region Rest of MA
  • 30. Concluding Remarks The immigration policies we evaluated promote economic growth. The economic growth is broad based across states and industries. Existing American workers have increased employment opportunities and incomes. Immigration reform in Boston, benefits surrounding counties rest of state- counterfactual approach what does REMI say? sm