The Economic Cost of Brain Waste in the U.S. Jeanne Batalova, Senior Policy Analyst Michael Fix, MPI President

Similar documents
Fact Sheet. The Costs of Brain Waste among Highly Skilled Immigrants in Michigan. I m m i g r a n t S k i l l U n d e r u t i l i z a t i o n

A Demographic Profile of Mexican Immigrants in the United States

Ohio s Immigrants. Toledo and Dayton December 10-11, George Gund Foundation Migration Policy Institute

New Americans in Michigan

ORIGINS AND EXPERIENCES A GROWING GENERATION OF YOUNG IMMIGRANTS MICHIGAN IMMIGRANTS HAVE VARIED

Using Data to Improve Workforce Innovation & Opportunity Act (WIOA) Services for Immigrants and Refugees

Immigration and Language

The Foreign-Born Population of Southeastern Pennsylvania. By Randy Capps

DACA at Four: Estimating the Potentially Eligible Population and Assessing Application and Renewal Trends

DAPA in the Balance: Supreme Court Arguments and Potential Impacts on U.S. Families and Communities

New public charge rules issued by the Trump administration expand the list of programs that are considered

IMMIGRATION FACTS. How Changes to Family Immigration Could Affect Source Countries Sending Patterns. Migration Policy Institute

New Americans in Houston

A Profile of Current DACA Recipients by Education, Industry, and Occupation

IMMIGRANTS IN THE U.S. LABOR FORCE: CBO Report Underscores Diverse Contributions of Foreign-Born Workers

A Portrait of Foreign-Born Teachers in the United States. By Yukiko Furuya, Mohammad Ismail Nooraddini, Wenjing Wang, and Michele Waslin 1

Ready to Meet the Needs of All Children? A Closer Look at Diversity in the Early Childhood Workforce

Fact Sheet. SETTLING IN A Profile of the Unauthorized Immigrant Population in the United States. I. Countries and Regions of Origin

Facts & Figures in this issue: income employment growth trends baby boomers millennials immigration

History of Immigration to Texas

Illegal Immigration: How Should We Deal With It?

A Profile of U.S. Children with Unauthorized Immigrant Parents

INFOBRIEF SRS. Over the past decade, both the U.S. college-educated

Recent Trends in Immigration Enforcement

Utah s Demographic Transformation

Louisville: Immigration Rebirth Matt Ruther, Department of Urban and Public Affairs, University of Louisville

Our Shared Future: U N D E R S T A N D I N G B O S T O N. #SharedFuture. Charting a Path for Immigrant Advancement in a New Political Landscape

Gauging the Impact of DHS Proposed Public-Charge Rule on U.S. Immigration

State & Local Tax Contributions of Young Undocumented Immigrants

Impact of Immigration: Disruptive or Helpful?

The EEO Tabulation: Measuring Diversity in the Workplace ACS Data Users Conference May 29, 2014

Migration Information Source - Chinese Immigrants in the United States

New Americans in Lancaster

TRENDS IN IMMIGRATION AND MIGRATION OF ENGLISH AND DUAL LANGUAGE LEARNERS

Profiling the Eligible to Naturalize

Employment outcomes of postsecondary educated immigrants, 2006 Census

Understanding the Immigrant Experience Lessons and themes for economic opportunity. Owen J. Furuseth and Laura Simmons UNC Charlotte Urban Institute

Immigrant Employment by Field of Study. In Waterloo Region

Issues in Education and Lifelong Learning: Spending, Learning Recognition, Immigrants and Visible Minorities

Immigration Policy Brief August 2006

Overview of Boston s Population. Boston Redevelopment Authority Research Division Alvaro Lima, Director of Research September

Chinese. imagine all the people. Chinese in Boston Photos by Renato Castello & Jeremiah Robinson

Foreign-born Share of Total Population and Labor Force, Civilian labor force age

Metro Atlanta Workforce:

The Immigration Population in the Washington, D.C. Region and the Service Needs of Central American Child and Family Migrants By Randy Capps

Making Sure WIOA Works for All:. Michigan s Obligations and Opportunities in Serving Immigrant and Refugee Jobseekers

Latinos in Saratoga County. Trudi Renwick Senior Economist Fiscal Policy Institute April 26, 2008

Gone to Texas: Migration Vital to Growth in the Lone Star State. Pia Orrenius Federal Reserve Bank of Dallas June 27, 2018

U.S. immigrant population continues to grow

Children of Immigrants

Welcoming and Integrating Refugee Professionals

Foreign-Educated Immigrants Are Less Skilled Than U.S. Degree Holders

Immigrants and the Direct Care Workforce

LATINOS IN AMERICA: A Demographic Profile

Ward 16 River. City of Ottawa Ward Profiles 2011 Census and National Household Survey POPULATION* 45, ,390. Total City of Ottawa Population

Where U.S. Immigrants Were Born 1960

LABOR MARKET SNAPSHOT SWITZERLAND COUNTY & LABOR SHED

The foreign born are more geographically concentrated than the native population.

Analysis of Demographic and Socioeconomic Characteristics of African Immigrants in USA

Labor Force Characteristics by Race and Ethnicity, 2015

Migration Information Source - Indian Immigrants in the United States

Older Immigrants in the United States By Aaron Terrazas Migration Policy Institute

Corporate. Report COUNCIL DATE: April 28, 2008 NO: R071 REGULAR COUNCIL. TO: Mayor & Council DATE: April 28, 2008

ECONOMICS OF IMMIGRATION

Effectively Serving Children in a Superdiverse Classroom: Implications for the Early Education System. Webinar

Employment, Education and Income

Representational Bias in the 2012 Electorate

WALTON COUNTY PROPERTY APPRAISER S OFFICE APPLICATION FOR AT-WILL EMPLOYMENT

Labour Force Outcomes of Engineers in Australia

I M M I G R A N T S A N D I M M I G R A T I O N RE S E ARCH RE P O R T. Upskilling the Immigrant Workforce to Meet Employer Demand for Skilled Workers

The Brookings Institution Metropolitan Policy Program Alan Berube, Fellow

Annual Flow Report. of persons who became LPRs in the United States during 2007.

Including Immigrant and Refugee Families in Two-Generation Programs: Elements of Successful Programs and Challenges Posed by WIOA Implementation

FAMILY IMMIGRATION POLICY AND TRENDS: HOW THE U.S. COMPARES TO OTHER COUNTRIES

Q 23,992. New Americans in Champaign County 11.6% 11.8%

Immigrant Workers in the Construction Labor Force NAHB Economics February 3, 2015

Release of 2006 Census results Labour Force, Education, Place of Work and Mode of Transportation

HEALTH CARE EXPERIENCES

Profile of New York City s Bangladeshi Americans

Immigrants, Education and U.S. Economic Competitiveness

Resources and Tools for Advising Immigrant and Refugee Professionals. November 9, 2012 National College Transition Network Conference

Cultural Frames: An Analytical Model

New Americans in Long Beach POPULATION GROWTH 3.3% 14.3 % Total population 481, % Immigrant population 128, % 26.1% 47.

Regina City Priority Population Study Study #2 - Immigrants. August 2011 EXECUTIVE SUMMARY

Impact of Immigration on Canada s Digital Economy

Changing Dynamics and. to the United States

The County-Level View of Unauthorized Immigrants and Implications for Executive Action Implementation

Asian Pacific American Heritage Month: May 2004

Legal Immigration to US Still Declining IMMIGRATION FACTS. Figure 1: Total Immigrant Admissions,

A Review of the Declining Numbers of Visa Overstays in the U.S. from 2000 to 2009 Robert Warren and John Robert Warren 1

AN ANALYSIS OF THE LABOR FORCE OF THE PONCA CITY AREA IN NORTHEAST OKLAHOMA

Making Sense of the Federal Policy Landscape

Canadian Labour and Business Centre. handbook. clbc IMMIGRATION & SKILL SHORTAGES DRAFT JULY 2004

Experiential Learning and Pathways to Employment for Canadian Youth

Immigration and the U.S. Economy

Oregon and STEM+ Migration and Educational Attainment by Degree Type among Young Oregonians. Oregon Office of Economic Analysis

Presenters. Agenda DACA & DAPA. DACA Eligibility Requirements 5/6/2015 EXECUTIVE ACTION ON IMMIGRATION

Demographic Change How the US is Coping with Aging, Immigration, and Other Challenges William H. Frey

Evaluating Methods for Estimating Foreign-Born Immigration Using the American Community Survey

Characteristics of the underemployed in New Zealand

Transcription:

The Economic Cost of Brain Waste in the U.S. Jeanne Batalova, Senior Policy Analyst Michael Fix, MPI President Washington, DC December 7, 2016

Who Was Involved Support and collaboration New American Economy: Angela Marek, Pavel Dramski, and Kate Brick World Education Services: Paul Feltman and Stacey Simon The J.M. Kaplan Fund: Suzette Brooks Masters Research team Jeanne Batalova, Michael Fix, and Ariel Ruiz, MPI Jim Bachmeier, Sociology Department, Temple University Carl Davis and Meg Wiehe, Institute on Taxation and Economic Policy

Research Questions 1. How many immigrants are underemployed (i.e., in low-skilled jobs) or unemployed? 2. Profiles by nativity, place of education, and legal status Foreign born, foreign educated Foreign born, U.S. educated U.S. born, U.S. educated 3. What are the most important contributors to immigrant underemployment?

Research Questions (Cont d) 4. What are the costs of underemployment in terms of forgone earnings? 5. What are the costs of underemployment in terms of forgone federal and state taxes?

Factors Linked to Skill Underutilization Place of education English language proficiency Legal status Race and ethnicity Time in the U.S. Degree level Degree field

Foreign Degree is a Major Risk Factor Percent in low-skilled jobs or unemployed 29% 18% 21% U.S. Born U.S.-Educated Immigrants Foreign-Educated Immigrants Source: MPI analysis of 2009-13 ACS and 2008 SIPP U.S. Census Bureau data, with legal status assignments by Bachmeier and Van Hook.

The U.S. Citizenship Premium Percent in low-skilled jobs or unemployed Unauthorized 40% Legal Permanent Residents 30% U.S. Naturalized Citizens 23% Temporary Visa Holders 10% Source: MPI analysis of 2009-13 ACS and 2008 SIPP U.S. Census Bureau data, with legal status assignments by Bachmeier and Van Hook.

Immigrants from Latin America and Africa Have High Underutilization Rates Percent in low-skilled jobs or unemployed Mexico Caribbean South America Africa Philippines Middle East India China European Union/EEA** Canada 0% 10% 20% 30% 40% 50% Source: MPI analysis of 2009-13 ACS and 2008 SIPP U.S. Census Bureau data, with legal status assignments by Bachmeier and Van Hook.

Immigrants with Degrees in Education and Business More Likely to Be Underutilized Percent in low-skilled jobs or unemployed 36% 34% 19% 18% 17% 15% 13% Education Business Engineering Physical Sciences Computer Sciences Health Biological Sciences Source: MPI analysis of 2009-13 ACS and 2008 SIPP U.S. Census Bureau data, with legal status assignments by Bachmeier and Van Hook.

Florida Has High Rate of Skill Underutilization; Michigan & Ohio: Low Percent in low-skilled jobs or unemployed 35% 30% 25% 20% 15% 10% 5% Immigrants U.S. Born 0% U.S. FL NY CA WA TX OH MI Source: MPI analysis of 2009-13 ACS and 2008 SIPP U.S. Census Bureau data, with legal status assignments by Bachmeier and Van Hook.

How Immigrant College Graduates in FL and MI Differ from the U.S. Characteristic Florida Michigan English proficiency Less likely More likely With U.S. degrees Less likely Less likely Advanced degree Less likely More likely Temporary visa holders Lower shares Age Older Similar Top origin Caribbean and South America Higher shares Asia and Europe

Economic Impact What are the costs of underemployment? Forgone earnings Forgone federal and state/local taxes

Difference in Annual Earnings Adequately Employed vs. Underemployed Average Annual Earnings Foreign-Educated Men Employed in high/middle-skilled jobs $96,000 Employed in low-skilled jobs $40,000 Gap $56,000

Amount and Sources of Underemployment Disadvantage: Foreign-Educated Men $56,000 Due to differences in characteristics: $24,000 Due to low-skilled employment: $33,000 Total due to low-skilled employment: $15.9B

Annual Forgone Earnings Due To Low-Skilled Employment $39.4 Billion $9.4 B - California $5.0 B New York $16.9 B Other states $3.6 B - Florida $2.5 B - Texas $830 M - Washington $510 M - Michigan $510 M - Ohio

Annual Forgone Taxes $10.2 Billion Federal level: $7.2 billion State/Local level: $3 billion

Annual Forgone State and Local Taxes State California New York Florida Texas Washington Ohio Michigan Total U.S. Forgone State & Local Taxes $694.8 M $594.0 M $214.7 M $167.5 M $74.9 M $53.0 M $48.6 M $3,033.6 M

Takeaways: Brain Waste s Impacts 1.9 million or 25% of the 7.6 million university-educated immigrants Costs $39.4 billion in forgone earnings $10.2 billion in forgone taxes, including $3.0 billion at state/local level $7.2 billion at federal level Conservative estimates

Why Is It An Urgent Issue? 48% of recent immigrant adults have with a university degree 7 million or 18% U.S.-born college graduates Focus on both development and full use of human capital regardless of place of education Promising initiatives: International and U.S.

MPI s Research National Report & Report-in-Brief http://bitly.com/mpi untappedtalent Infographic http://bit.ly/ infobrainwaste State Fact Sheets CA, FL, MI, NY, OH, TX, WA http://bit.ly/untappedtalentstates

For More Information Topic Brain Waste and Credential Recognition: www.migrationpolicy.org/topics/brain-waste-credential-recognition Contact us at Jeanne Batalova, jbatalova@migrationpolicy.org Michael Fix, mfix@migrationpolicy.org Ariel Ruiz, aruiz@migrationpolicy.org

Key Definitions Brain waste (aka skills underutilization): College graduates cannot fully utilize their skills and education in the workplace despite their high professional qualifications. Includes two outcomes: 1. Unemployment: Persons are actively searching for employment but unable to find work. 2. Underemployment: College graduates working in low-skilled jobs (e.g., home-health aides, personal-care aides, maids and housekeepers, taxi and truck drivers, and cashiers). These occupations typically require a high school diploma or less. Adequate employment in high- or middle-skilled jobs. High-skilled jobs require at least a bachelor s degree (e.g., postsecondary teachers, surgeons, engineers); middle-skilled jobs require longterm on-the-job training, vocational training, or an associate s degree (e.g., carpenters, electricians, and real estate brokers).

How Serious is Brain Waste in the United States? Of the 7.6 million immigrant college graduates in the U.S. labor force 1.9 million one in four are in low-skilled jobs or unemployed Nearly 1.4 million are in middle-skilled jobs 4.4 million in high-skilled jobs

Immigrants with Low English Skills Are 5 Times More Likely to Be Underemployed

English Proficiency The Strongest Predictor Percent in low-skilled jobs or unemployed 61% 35% 20% Not well/not at all Well English only How well do you speak English?

The U.S. Citizenship Premium Distribution by citizenship/legal status Unauthorized 11% Temporary visa holders 8% Legal permanent residents 24% U.S. naturalized citizens 57%

Immigrants with Degrees in Education and Business More Likely to Be Underutilized 40% Percent in low-skilled jobs or unemployed Immigrants U.S. Born 35% 30% 25% 20% 15% 10% 5% 0% Education Business Engineering Physical Sciences Computer Sciences Health Biological Sciences