New Data Places a Value on Immigrant Lost Potential

A new report by the Migration Policy Institute (MPI) on the issue of “brain waste” describes the most important factors that result in high-skilled immigrants being underemployed (that is, high-skilled immigrants in low-skill jobs) or unemployed. For the first time, this report estimates the earnings lost from underutilized immigrant skills.

MPI researchers determined that the 1.5 million high-skilled immigrants working in low-skill jobs earn a total of $39.4 billion less each year than they would if they were employed in jobs appropriate to their skill level. The forgone earnings translate into a total of $10.2 billion in lost state and local tax revenue, according to the report.

This new research gives advocates the tools to go to policy makers at the state and local level and show them what their return on investment will be when they support programs to help skilled immigrants gain whatever extra training they need to gain employment in high-paying jobs appropriate to their skill level. A modest investment of public funding will lead to a big boost in earnings and, as a result, a big boost in taxes paid.

Read more in my post on Immigration Impact.

Photo credit: Department of Foreign Affairs and Trade.

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