The purpose of this study is to assess the impact of undocumented immigration on the United States, specifically the economic implications they may carry and the government effectiveness in managing this population. Utilizing the method of qualitative content analysis, this study examined the various aspects of the U.S. economy affected by this population and the nation's past and current immigration policies. The research found the undocumented population to be an expense on the host economy through their use of social and public services, with expenses even higher in the Southwest Border States. It is important to note, however, that there are benefits to providing these services. In addition amnesty-type policies were shown to be ineffective at managing the population due to various deficiencies. The nation's past experience with the Immigration Reform and Control Act of 1986 (IRCA) is a strong example. / McAnulty College and Graduate School of Liberal Arts; / Graduate Center for Social and Public Policy / MA; / Thesis;

Master of Arts / Department of Economics / Tracy M. Turner / The report examines the fiscal impact of undocumented persons at the federal, state, and local levels in order to explain the likely effects of an amnesty program. The report first provides background on the population of undocumented persons in the United States and an overview of the laws which govern their status. Details of past and current amnesty legislation are given. The channels through which undocumented immigrants have a fiscal impact on the three levels of government in the United States are explained. The paper discusses the economic theory relating to immigration and its effect on economic growth. Published works on the fiscal impact of the undocumented on state and local budgets and on federal programs such as social security are reviewed. The research reviewed includes an analysis of the long-term fiscal impact of immigrants. Undocumented immigrants impose a net cost at the state and local levels in most cases. However, many undocumented immigrants make income and payroll tax payments and the population of undocumented immigrants imposes a net benefit at the federal level. These sources of information are then used to explain how an amnesty program might change the fiscal impact of the undocumented at the three levels of government. The recent executive order signed by President Obama, known as Deferred Action for Childhood Arrivals (DACA), is an amnesty program that has a strong potential to help the U.S. economy retain young and highly educated workers, who have a positive fiscal impact on government finances. This report draws certain recommendations for the design of a successful amnesty and for implementing other immigration reforms from published research.