Employment of Western Hemisphere undocumented aliens: Is there a negative fiscal impact on the United States?

Abstract

This paper presents estimates of the income of undocumented Western Hemisphere aliens working in the continental United States. It is estimated that annual earnings of undocumented Western Hemisphere aliens were approximately $7 billion during the 1980s. Although the unreported income of undocumented Western Hemisphere aliens was significant, $3.7 billion per year, it does not appear to have resulted in a significant tax loss. The tax loss is estimated to be about $85 million per year during the early 1980s, increasing to slightly less than $190 million per year in the latter part of the 1980s.