Gordon Hanson, a University of California at San Diego economist who has studied the issue for the nonpartisan Council on Foreign Relations, has detailed
how large-scale immigration undermines wages for low-skilled workers. In Arizona’s case, he thinks the state is paying an economic price for its decision. “As the U.S. economy continues to recover, the Arizona economy will be weighed down by slower growth and by less export production in traditional industries” such as agriculture where illegal immigrants play a big role, he says.
Proponents of doing more to curb illegal immigration say the mass departures helped the state economically in several ways. Government spending on health care and education for illegal immigrants and their U.S.-born children dropped. Wages for plasterers, landscapers, farmworkers and other low-skilled laborers jumped because of scarcity, according to employers and federal data.
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Even if the size of the state’s GDP decreased, the decrease in immigration redistributed income from employers to employees, particularly at the bottom end of the labor market,” says Steven Camarota, research director of the Center for Immigration Studies, in Washington, which favors reduced illegal immigration. “That’s a good deal.”