Economic impact of a guest worker program on American agriculture


Fox News
carried on 4/10 a story, “Farmers Keep Wary Eye on Immigration Debate” which has some good interview quotes. The nub of the article is that farm owners need Hispanic workers and they need them cheap ($10 and hour). A guest worker program will provide the workers, but I expect at a noticeably higher cost. I have noted that the bill sent out by the Senate Judiciary Committee had an “AgJobs” component.here.
Here is my posting about my own remote state of Vermont depending on Hispanic workers to keep its diary industry alive –if only for the tourism industry.
From the Fox News article:

Cutting farmers’ access to cross-border workers without giving them an alternative could cost the industry up to $9 billion in annual production, according to the American Farm Bureau Federation, which has long lobbied for a streamlined temporary worker program.

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This week’s immigrant demonstrations make big impact

“People Power” is how the New York Times painted the large and many orderly demonstrations this Monday. In Washington DC, Ted Kennedy addressed the crowd like a modern day Henry V, evoking future memories of that day. Demonsrtators read from sheets the following phonetized pledge of allegiance: “Ai pledch aliyens to di fleg, Of d Yunaited Esteits of America, An tu di republic for wich it stands, Uan naishion, ander Gad, Indivisibol, Wit liberti an yostis, For oll”

The immigration rallies of recent weeks have drawn an astounding number of people around the country: Monday’s “national day of action” was attended by an estimated 180,000 in Washington, 100,000 each in Phoenix and New York City, 50,000 each in Atlanta and Houston, and tens of thousands more in other cities.

Adding in the immense marches last month in Los Angeles and Chicago, the immigrants and their allies have carried off an amazing achievement in mass political action, even though many of them are here illegally and have no right to vote.

The marchers in white T-shirts poured out of the subway doors and merged into a stream, flowing like blood cells through the tubular innards of the Washington Metro, past turnstiles and up escalators and out into the delicate brilliance of a fine spring day. On the street, they met up with the others — young parents, old people, toddlers in strollers, teenagers in jeans and jewelry — and headed to the Mall, where they and their American flags dissolved into a shimmering sea of white, red and blue.

The AP reported the following:

“This is bigger than the civil rights movement in the sixties. This is huge,” New Mexico Gov. Bill Richardson said Tuesday on CBS’ “The Early Show.” “What this is building is enormous pressure on the Congress to pass a comprehensive immigration bill _ tighten border security, more border patrol agents, secure the border from drugs and illegal traffic, but also a sensible legalization plan that brings the 11 million undocumented workers out of the shadows,” he said.

Out of Many, One: The Far-Reaching Touch of the Crowd” was the title of an analysis in the Washington Post on 4/11 by a reporter clearly impressed by the orderliness of the demonstration. “The crowd as historical actor is acting again.”

A few handy figures about immigration to work in the U.S.

There is no easy way to estimate the net change from year to year in foreign workers coming to the U.S. and the number of foreign workers in the U.S. at any time. The following figures can help. One can infer from these figures that upwards of half of the net increase in foreign workers has been illegal workers. The entire set is divided among official permanent admissions, official temporary admissions, and illegal entrants.
Number of foreign-born persons in the U.S. today: 35 million
Subset of 35M who have become American citizens: 12 million
Subset of 35M who are eligible for citizenship but have elected to become citizens as yet: 8 million
Simple math suggests that about 15 million foreign born people in the U.S. are neither citizens nor on a citizen track. The estimated 12 million illegal immigrants make up the large majority of these persons.
OFFICIAL PERMANENT ADMISSIONS
Number of persons (adults, children, retirees) formally admitted into the U.S. each year for permanent residence (which can lead to citizenship): roughly about 1 million
(This and other official figures below are rough due to volatility from year to year, driven in part by paperwork backlogs)
Subset of these 1M persons who are working age adults: 400,000?
Subset of these 400,000 +/- working age adults who were admitted on the basis of employment criteria (“employment based preferences”) as opposed to family ties, other: about 150,000
OFFICIAL TEMPORARY WORK ADMISSIONS
Number of new H-1B temporary professional workers formally admitted each year (i.e. Bill Gate’s programmers): 95,000
Number of new H-2A temporary agricultural workers (special agricultural workers) admitted each year: 200,000? less those returning
Number of other temporary workers admitted for miscellaneous programs: to be found but probably well under 50,000 (types: H-2B, H-1C, E, L, O, P, R, for nurses, ministers, ahtletes, etc, etc.)
ILLEGAL ENTRANTS
Number of new illegal workers each year: roughly 350,000

Lessons from immigration reform in 1986

David North closely analyzed the 1986 reform effort – IRCA, or the Immigration Reform and Control Act, and found lessons for today. In his paper published at an immigration lawyer website, he lists six attributes of IRCA worth noting:
1. Large numbers—often much larger than anticipated—of aliens sought legalization and the overwhelming majority of applications were accepted.
2. The compromises leading to the passage of the legislation led to an extremely complex program, full of internal inconsistencies. [This is already evident in the guest worker and amnesty provisions proposed in 2006 – PFR]
3. There was a great deal of many different kinds of fraud in the program; much of the apparent fraud did not lead to the denial of applications.
4. The promised balance—of a large legalization program for currently illegal aliens joined with a strict enforcement program against the future arrival of illegal aliens—did not eventuate. Yes, there was much legalization, but there was little enforcement of the law forbidding the employment of the undocumented (employer sanctions). [It may well be that the law enforcement system in the U.S. is so poorly acculturated to personal identity enforcement (“big brother”) that it will always be messy – PFR]
5. Within the legalization process there was a built-in (if probably unconscious) bias toward Hispanics and away from other undocumented populations. [We will see a lot of Europeans and Asian computer specialists coming out of the woodwork – PFR]
6. Demographic considerations (are there too many of us?) and equity in the labor market (are we widening the disparity between rich and poor?) were largely overlooked. [These issues have of course been much more openly addressed, especially in the past few months. There is a lot of research on these issues, serving as a foundation for books and articles. – PFR]

Opinions by Washington Post, NYT’s Nicholas Kristoff

I am excerpting two opinion pieces from this weekend: the Washington Post’s editorial 4/8/06, ‘Nirvana,’ Lost Thanks largely to Democrats, the Senate missed an opportunity, and Nicholas Kristoff’s column today 4/9/06 in the New York Times, “Compassion that hurts.”
The editorial says that the compromised bill was working in the right direction and that Democrats killed it. I have a problem with an unstated premise of the editorial, that the compromise bill would not be savaged on the floor of the Senate. More likely, no bill will come out of conference with the enforcement-focused House of Representatives. Sure, Democrats at the time would very much like to run in November with a partisan pro-Hispanic position and no legislation enacted with a Republican majority in Congress.
Kristoff essentially repeats arguments made and cited before by me, that massive immigration by poorly educated Hispanics are to the detriment of America’s poorly educated. (To find the several entries, search for Borjas and Camarota.)
The Washington Post’s editorial (link not available):

Continue reading Opinions by Washington Post, NYT’s Nicholas Kristoff

U.S. Senate struggles on April 6 with immigration bill compromise

The Senate this week came up with a compromise which in my judgment is doomed to fail, for at least two reasons. First, the anti-amnesty lobby wants to shred it. Second, it will be incredibly hard to enforce. To me, this is a means by some Senate Republicans to record a pro-business, pro Hispanic voter vote for a McCain-like bill before such a bill is mauled in conference committee by the House. The business lobby and Hispanic community appears to be strongly in support of the McCain-like bill as it will provides for a continuity of residence and work.
The Senate is (as of right now) proposing in effect to modify the bill approved by the Senate Judiciary Committee, which is modeled after the MeCain bill. This bill pretty much allows all illegal immigrants to stay in the country for a nominal penalty and sets them on the road to long term residency or citizenship. I addressed the Committee’s March 27 work here.
The compromise creates artificial categories of immigrants defined by duration of illegal residency so far in the U.S. The Pew Hispanic Center quickly came out with an estimate of the duration of illegal residency so far. It says it has “produced estimates of the unauthorized population according to the categories established in the legislation now before the Senate. These estimates are based on the March 2005 Current Population Survey. For a full report based on that data please go to” here.
Time in the US
Five years or more: 6.7 million
Two to five years: 2.8 million
Less than two years: 1.6 million
Total: 11.1 million
Based on analysis of other data sources that offer indications of the pace of growth in the foreign-born population, the Center developed an estimate of 11.5 to 12 million for the unauthorized population as of March 2006.

Case study of Nevada: Do immigrants take jobs from Americans?

The Las Vegas Sun talked to two immigration experts. Jeff Passel, from the Pew Hispanic Center, said the relatively high illegal worker population did not seem to have a negative impact on unemployment among citizens. Steven Camarota of the Center for Immigration Studies said that the damage is evidenced in lower workforce participation, to him a truer measure.
Per Passel, Nevada had the second-highest proportion of unauthorized workers in the nation in 2004, the state’s unemployment rate of 3.8% was one of the country’s lowest – a full point lower than the national rate of 4.8%.
( My posting here estimated the size of undocumented workforce relative to total state workforce as of March 2005. Note the high percentage for NV.)
Nearly one in 10 workers in Nevada was unauthorized in 2004, second only to Arizona, according to a recent Pew Hispanic Center report. Of the 10 states with the highest shares of illegals in the work force, seven had unemployment rates below the national average. NV’s unemployment rate of 3.8% for 2004 was a point below the national rate of 4.8%.
However, Steven Camarota says you need to look at unemployment rates just for the most impacted cohorts, such as male teenagers. In 2004 male teenagers between 16 and 19 had a 16% unemployment rate.
More importantly, one needs to look at the drop in labor force participation. In 2000, 55.1% of Nevadans between 16 and 19 were either employed or looking for work. By 2004, that number slipped to 45.8%. Among people age 20 to 24, the participation rate dropped from 81.3% to 77%. The number of blacks participating in the state’s work force fell from 71.1% to 64.9%.

Douglas Massey of Princeton: a blast of fresh air on Mexican immigrant workers

Douglas S. Massey, Princeton University professor, has closely studied Mexican immigrants and comes up with energetic, constructive interpretations of worker migration into the United. States. I will summarise several of his books. He also wrote an op-ed piece in the New York Times on Monday. One of his most intensely argued points is that border security-alone advocates hugely misperceive what the Mexican worker migration is all about. Massey’s broad view puts our immigration issues in the context of 160 million immigrants troughout the world.
Crossing the Border (2004) (co-editor)
The full title: “Crossing the Border: Research from the Mexican Migration Project” (2004). Per the review in Amazon, the book draws from “the largest, most comprehensive, and reliable source of data on Mexican immigrants currently available”. It is a myth-breaking book:

Continue reading Douglas Massey of Princeton: a blast of fresh air on Mexican immigrant workers

Anti-guestworker panel argues its case

I have condensed the transcript of a March 3 2006 panel discussion called: Guestworker Programs: Do They Make Sense for America? The meeting was sponsored by the Center for Immigration Studies, and the transcript came from its website. All the panelists are vocal critics of the guestworker program. I have divided the posting into major segments: (1) 1986 IRCA failed in processing, enforcement, and numbers of evaders, (2) economics of farm labor and what happens when labor costs rise (we adjust) (3) net cost to taxpayer even after guestworker program of $10B, and (4) How to deal with current 12 million illegal immigrants (attrition).

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AgJobs bill passes Judiciary Committee March 27

AgJobs legislation was approved by the Senate Judiciary Committee on March 27. This bill significantly revises the government’s H-2A guest worker program for farm workers. Key is an earned legal immigration status provision which the Fund estimates will cover several hundred thousand undocumented farm workers. The bill creates a “blue card” status which can lead to a green card.
According to a Farmworker Justice Fund press release,
AgJOBS contains two basic programs. First, the earned legalization program would allow many unauthorized immigrant farmworkers to earn legal immigration status by demonstrating their recent agricultural work experience in the U.S. and by continuing to work in agriculture for three to five years. Second, it would revise the H-2A agricultural guest worker program to streamline the process for employers while retaining major protections for workers.
All of the Senate Judiciary Committee Democrats, led by Senator Edward Kennedy, supported AgJOBS. The Committee Republicans who voted for AgJOBS were Senators DeWine, Brownback, and Specter. Senators Hatch and Graham “passed,” choosing not to vote on the AgJOBS amendment. The Republican opponents were Coburn, Grassley, Kyl, Sessions, and Cornyn.
Provisions include
* To enter the earned legalization program, farmworkers will have to show that they performed at least 150 days of agricultural work in the U.S. during the 24-month period ending December 31, 2005. (This is not a per-year requirement; it is a total of 150 days.)
* Once the person shows eligibility, he or she gets a “blue card” to demonstrate temporary resident status. Previously, there was no special card or color.
* Once the farmworker obtains a blue card, the farmworker’s spouse and minor children obtain temporary resident status and the spouse gets work authorization. These family members may also then travel across the U.S. border.
* To earn a green card, the farmworkers must perform agricultural work for at least 100 work days per year for five years, or perform 150 days per year for three years. Participants may work outside agriculture but only if they continue to meet the annual agricultural work requirement.
* Disqualification will occur due to conviction of a felony or three misdemeanors or a single crime that involves bodily injury or injury to property in excess of $500.
* In addition to an application fee, farmworkers will have to pay a fine of $100 upon obtaining a blue card.
* To obtain a green card, farmworkers must pay a fine of $400 and must be current on their income taxes.
* The earned legalization program has a cap of 1.5 million.
* The H-2A temporary foreign worker program will allow employers in the dairy industry to hire workers even if they are year-round workers.