Access To Higher Ed 9-25 FINAL
Access To Higher Ed 9-25 FINAL
Access To Higher Ed 9-25 FINAL
Access to Higher Education: Wages Increase and the Tax Base Deepens
The economic advantages of a higher education for both workers and the economy are clear. According to the Bureau of Labor Statistics, workers who lacked a high-school diploma in 2006 earned an average of only $419 per week and had an unemployment rate of 6.8%. In contrast, workers with a bachelors degree earned $962 per week and had an unemployment rate of 2.3%, while those with a doctorate earned $1,441 and had an unemployment rate of only 1.4%.4 Studies of undocumented immigrants who legalized their status through the Immigration Reform and Control Act (IRCA) of 1986 reveal that legal status brings fiscal, economic, and labor-market benefits to individual immigrants, their families, and U.S. society in general.5 The U.S. Department of Labor found that the wages of those immigrants who received legal status under IRCA had increased by roughly 15% five years later.6 Given a chance, now-undocumented students will improve their education, get better jobs, and pay more in taxes.
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A 1999 RAND study found that, although raising the Hispanic college graduation rate to the same level as that of non-Hispanic whites would increase spending on public education, these costs would be more than offset by savings in public health and welfare expenditures and increased tax revenues resulting from higher incomes. For instance, a 30-year old Mexican immigrant woman with a college degree will pay $5,300 more in taxes and cost $3,900 less in government expenses each year compared to a high-school dropout with similar characteristics.7
Experience Shows That Access to Higher Education Helps Kids Without Burdening Institutions of Higher Learning
Ten statesTexas, California, Utah, Washington, New York, Oklahoma, Illinois, Kansas, New Mexico, and Nebraskahave passed laws permitting undocumented students to qualify for in-state tuition if they attended and graduated from high school in the state. In addition, New Mexico and Texas allow undocumented students to compete for financial aid. The experience of these states reveals that the number of undocumented students is far too small to deprive native-born students of college admission slots or financial aid. For instance, three years after Texas passed a law allowing undocumented students to qualify for in-state tuition rates, the total number of students paying in-state tuition under the new law amounted to only 0.36% of all students attending public colleges and universities in the state.8
Given a Chance, Undocumented Students Can Help Fill the Growing Demand for High-Skilled Workers Nine of the 15 occupations which the Bureau of Labor Statistics (BLS) expects to grow at least twice as fast as the national average between 2004 and 2014 require an Associate degree or higher.9 In four of these higher-skilled occupations, immigrants accounted for a significantly greater share of workers than in the U.S. labor force as a whole in 2005: medical scientists (46%), computer software engineers (35%), database administrators (21%), and postsecondary teachers (20%).10
Jeffrey S. Passel The Size and Characteristics of the Unauthorized Migrant Population in the U.S.: Estimates Based on the March 2005 Current Population Survey. Washington, DC: Pew Hispanic Center, March 7, 2006. 2 Jeffrey S. Passel, Further Demographic Information Relating to the DREAM Act. Washington, DC: The Urban Institute, October 21, 2003. 3 ibid. 4 Bureau of Labor Statistics, Spotlight on Statistics: Back to School, August 2007 (http://www.bls.gov/spotlight/2007/back_to_school/) 5 Mary G. Powers, Ellen Percy Kraly & William Seltzer, IRCA: Lessons of the Last U.S. Legalization program, Migration Information Source, July 2004. 6 Shirley Smith, Roger G. Kramer & Audrey Singer, Effects of the Immigration Reform and Control Act: Characteristics and Labor Market Behavior of the Legalized Population Five Years Following Legalization. Washington, DC: Bureau of International Labor Affairs, U.S. Department of Labor, May 1996. 7 Georges Vernez, Richard A. Krop & C. Peter Rydell, Closing the Education Gap: Benefits and Costs. Santa Monica, CA: RAND Education, 1999. 8 Carole Keeton Strayhorn, Undocumented Immigrants in Texas: A Financial Analysis of the Impact to the State Budget and Economy, Special Report of the Texas Comptroller, December 2006, p. 5. 9 BLS occupational employment projections, 2004-2014. 10 2005 American Community Survey.
This publication was made possible in part by a grant from Carnegie Corporation of New York. The statements made and views expressed are solely the responsibility of the author.