<p>I'm talking specifically about the U.S. Currently, there is a <a href="https://nypost.com/2023/12/18/metro/mayor-adams-opens-door-to-tax-hikes-city-layoffs-to-close-7b-budget-gap/" rel="nofollow noreferrer">migrant crisis</a> and the &quot;sanctuary cities&quot; are facing a budget crisis in the near future because of the influx of migrants. I wonder if the benefits provided by the government will pay off especially if you consider the fact that some get paid under the table.</p>

CC BY-SA 4.0
2023-12-21T18:08:43.993Z
Unfortunately this can't be clearly answered, when we talk about current event. 

Migrants, whether legal/illegal are not homogenous and constantly changing group. The composition of illegal migrants in terms of age, occupation etc in 1990s was probably completely different than it is in 2023. There is research on the net economic benefit of migrants from the past, but you can't necessarily extrapolate that to future if the composition of migrants changed over time. Usually it takes at least 5 years at very minimum of waiting to get enough data to analyse things like this empirically.
1muflon1
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2023-12-21T18:23:03.907Z
In principle if these illegal immigrants have complementary skills to american citizens they should be beneficial for the economy (however, don't confuse economy with state budget, something can be good for economy but bad for state/government budget). However, if they are not complements but substitutes (i.e. mimic the skillset of Americans) they are more likely to have negative effect (although it would still not be certain since with even with substitution there would be positive effect for capital owners, even if the effect on labor is negative) and depending on parameters former could
1muflon1
CC BY-SA 4.0
2023-12-21T18:23:15.440Z
offset the latter.
1muflon1
CC BY-SA 4.0
2023-12-22T04:49:27.253Z
The headline refers to "illegal immigrants" but the current migration crisis consists overwhelmingly of people seeking asylum, which is legal. That's just one reason the central question is unclear... is there a net benefit of what compared to what, exactly?
Brian Z
CC BY-SA 4.0
2023-12-22T09:51:01.757Z
Does this answer your question? [Why does immigration boost the economy? (or does it not...?)](https://economics.stackexchange.com/questions/12420/why-does-immigration-boost-the-economy-or-does-it-not)
Giskard
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2023-12-22T09:52:27.603Z
See also [Is there an economic argument against mass immigration?](https://economics.stackexchange.com/questions/44277/is-there-an-economic-argument-against-mass-immigration) and [Does immigration help to sustain welfare in rich European countries?](https://economics.stackexchange.com/questions/22732/does-immigration-help-to-sustain-welfare-in-rich-european-countries).
Giskard
CC BY-SA 4.0
2023-12-22T09:53:01.540Z
Also do you have a *good* source for >> *"sanctuary cities" are facing a budget crisis in the near future because of the influx of migrants* <<?
Giskard
<labor-economics>
Are illegal immigrants a net benefit to the economy?
Aqua Neon
# Are illegal immigrants a net benefit to the economy?

(Asked by: username_0 on 2023-12-21)

I'm talking specifically about the U.S. Currently, there is a [migrant crisis](https://nypost.com/2023/12/18/metro/mayor-adams-opens-door-to-tax-hikes-city-layoffs-to-close-7b-budget-gap/) and the "sanctuary cities" are facing a budget crisis in the near future because of the influx of migrants. I wonder if the benefits provided by the government will pay off especially if you consider the fact that some get paid under the table.

**Tags:** labor-economics
> **Comments:**
> **username_1**: Unfortunately this can't be clearly answered, when we talk about current event.   Migrants, whether legal/illegal are not homogenous and constantly changing group. The composition of illegal migrants in terms of age, occupation etc in 1990s was probably completely different than it is in 2023. There is research on the net economic benefit of migrants from the past, but you can't necessarily extrapolate that to future if the composition of migrants changed over time. Usually it takes at least 5 years at very minimum of waiting to get enough data to analyse things like this empirically.  
> **username_1**: In principle if these illegal immigrants have complementary skills to american citizens they should be beneficial for the economy (however, don't confuse economy with state budget, something can be good for economy but bad for state/government budget). However, if they are not complements but substitutes (i.e. mimic the skillset of Americans) they are more likely to have negative effect (although it would still not be certain since with even with substitution there would be positive effect for capital owners, even if the effect on labor is negative) and depending on parameters former could  
> **username_1**: offset the latter.  
> **username_2**: The headline refers to "illegal immigrants" but the current migration crisis consists overwhelmingly of people seeking asylum, which is legal. That's just one reason the central question is unclear... is there a net benefit of what compared to what, exactly?  
> **username_3**: Does this answer your question? [Why does immigration boost the economy? (or does it not...?)](https://economics.stackexchange.com/questions/12420/why-does-immigration-boost-the-economy-or-does-it-not)  
> **username_3**: See also [Is there an economic argument against mass immigration?](https://economics.stackexchange.com/questions/44277/is-there-an-economic-argument-against-mass-immigration) and [Does immigration help to sustain welfare in rich European countries?](https://economics.stackexchange.com/questions/22732/does-immigration-help-to-sustain-welfare-in-rich-european-countries).  
> **username_3**: Also do you have a *good* source for >> *"sanctuary cities" are facing a budget crisis in the near future because of the influx of migrants* <<?  

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