The Undocumented American Dream

Willis Chung

Gone are the days of manicured lawns and white picket fences. For the 10.5 million undocumented immigrants working in the United States, the American Dream means staying on the right side of a concrete wall (Krogstad et al.). In the fiscal year (FY) of 2023, the U.S. Customs and Border Protection recorded more than three million encounters, doubling the figures from FY2019 (“FY23 Factsheet”). This translates to a daily average of nearly ten thousand individuals striving for a better life, only to be detained or, worse, turned away at the border. Those who manage to cross the border undocumented are forced into jobs that don’t utilize their full potential. Instead, they often occupy “unskilled jobs that involve low wages, tend to be temporary and where working conditions are harsh, unpleasant and unsafe” (Nadadur). Despite these harsh realities, they make significant contributions to the U.S. economy. Undocumented workers offset labor shortages, foster entrepreneurship, and boost consumer spending, yet they’re exploited and stigmatized due to their legal status; however, comprehensive immigration reforms can help address this inequality.

Undocumented workers often face exploitation and stigmatization due to their vulnerable immigration status. The U.S. Department of Homeland Security defines “undocumented” as “all foreign-born non-citizens who are not legal residents” (Baker and Robert). This category encompasses individuals who entered without inspection (EWI), overstayed their visas, are currently seeking legalization, or are beneficiaries of programs such as Temporary Protected Status (TPS) and Deferred Action for Childhood Arrivals (DACA). Although the Immigration Reform and Control Act (IRCA) of 1986 prohibits U.S. employers from conscious employment of undocumented workers, it does not explicitly ban undocumented workers from working as independent contractors (Library of Congress). This loophole in the IRCA creates a breeding ground for exploitation. Undocumented workers, constrained by limited options, are lured into a relentless cycle of low-skilled, low-wage jobs with dangerous conditions and zero benefits. Fearing deportation, they are often silenced, unable to challenge these egregious violations that could cost them their lives. A University of Chicago study found that “immigrant workers experience 300 more workplace fatalities and 61,000 more workplace injuries annually than native-born workers” (Quijano). The exploitation of undocumented workers isn't a one-way street; it creates a dangerous race to the bottom. Businesses that undercut costs by exploiting cheap, illegal labor drive downward pressure on wages and working conditions for everyone. This creates a system where all workers, regardless of immigration status, are pitted against each other in a race to see who will accept the least for their labor. Furthermore, the exploitation of undocumented workers perpetuates a downward spiral of vulnerability and marginalization. Due to their illegal status, most undocumented workers live isolated from society, leaving them vulnerable to social discrimination and stigmatization. The 2024 National Monmouth University Poll highlights a striking consensus, with over 8 in 10 Americans agreeing with Trump’s perspective that “illegal immigration hurts American workers … and undermines public safety” (Poll on Illegal Immigration; Trump’s Remarks on Illegal Immigration). However, despite widespread misconceptions, research indicates no direct correlation between the surge in illegal immigration and crime rates in the United States. In fact, data from 1990 and 2013 reveals a stark contrast: as illegal immigration numbers tripled, the U.S. violent crime rate plummeted by 48% (Martínez and Rumbaut). Most undocumented immigrants arrive in the U.S. fleeing violence and instability in their home countries, driven by the desire for safety and security for themselves and their families. This serves as a powerful deterrent to crime, as they wouldn't risk jeopardizing their newfound security by engaging in criminal activity. Unfortunately, nativistic politicians often resort to fear-mongering, dehumanizing undocumented workers as terrorists and scapegoating them for security and economic issues. This divisive rhetoric not only ignores the facts but also fuels racism and xenophobia. However, by fostering a path to legal status for undocumented workers, we can not only protect them from exploitation and marginalization but also unlock their full potential as contributors to our economy and society.

Undocumented workers make significant economic contributions by alleviating labor shortages, fostering entrepreneurship, and increasing consumer spending. During Trump’s “Modernizing Our Immigration System for a Stronger America” speech, he claimed that “foreign workers are coming in and they’re taking the jobs that would normally go to American workers” (Trump’s Remarks on Immigration System). While it’s tempting to view the issue through this straightforward perspective, it grossly oversimplifies the situation. Trump’s argument incorrectly assumes a direct one-to-one competition between native and undocumented workers, suggesting that every job filled by an undocumented worker directly displaces a native worker. This perspective overlooks the broader economic context, where undocumented workers often fill roles that are less desirable among native workers, thereby contributing to economic sectors that might otherwise struggle. According to the Journal of Ethnic and Migration Studies, “though the native unemployment rate for food preparation jobs is 9 percent, 25 percent of these jobs are held by illegal immigrants. Similarly, though the native unemployment rate is 12 percent in farming occupations, illegal immigrants hold 20 percent of them” (Nadadur). These roles, characterized by physically demanding work, lengthy hours, and comparatively lower wages, are significantly less appealing to U.S.-born workers. As a result, the native unemployment rates are much lower than the percentage of undocumented workers in these sectors. Rather than directly competing with their native counterparts, undocumented workers are stepping in to fill critical gaps in the labor force. Their presence serves as a vital buffer against labor shortages, ensuring the continuity of essential industries. Furthermore, undocumented workers demonstrate a higher propensity for entrepreneurship, thereby creating additional job opportunities and fostering economic growth within the United States. A study conducted by the American Economic Association reveals that immigrants are 80 percent more likely to start businesses compared to U.S.-born citizens (Azoulay et al.). Due to their lack of legal work authorization, most undocumented workers are restricted from traditional employment opportunities, prompting them to start their own small businesses as a means of supporting themselves and their families. By becoming entrepreneurs, undocumented workers not only create employment opportunities, but also stimulate economic growth through purchasing supplies, selling goods or services, and paying taxes. Moreover, undocumented workers contribute to the U.S. economy as consumers in the market. According to the Journal of Ethnic and Migration Studies, “90 percent of the wages that the undocumented population earns are currently spent inside the US… the total consumptive capacity of illegal immigrants remaining in the US is around $450 billion” (Nadadur). Since undocumented workers are ineligible for most social safety net programs, they depend solely on their earnings to cover basic necessities. When they spend money on goods and services, they stimulate demand, create jobs, and contribute to economic growth. As consumers, they also contribute to tax revenues through sales taxes on the goods and services they purchase. This revenue helps fund public services and infrastructure, benefiting both immigrant and native-born populations alike. 

Granting permanent legal status to undocumented workers dismantles exploitative systems and strengthens the U.S. economy. In 1986, President Reagan signed the Immigration Reform and Control Act (IRCA) into law, granting lawful permanent residence (LPR) to three million undocumented workers living in the United States (Library of Congress). Two decades later, President Obama introduced the Deferred Action for Childhood Arrivals (DACA) program, which protected undocumented children from deportation and provided them with renewable work permits. According to the President’s Alliance on Higher Education and Immigration, more than 90 percent of DACA recipients were employed in 2021, with more than 75 percent in occupations classified as essential by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (“DACA Statistics”). By providing more undocumented children with the ability to work legally, the U.S. government will open doors to opportunities that were previously inaccessible. Instead of being confined to the shadows of society or restricted to exploitative occupations, DACA recipients will be able to actively seek employment in various fields that match their interests and skills, including those deemed essential to our society. This not only benefits undocumented workers by providing them with better opportunities for personal and professional growth but also strengthens the workforce by tapping into a pool of talented and motivated individuals. Furthermore, the American Immigration Council reveals that undocumented workers’ average hourly wage “increased by 86 percent after receiving DACA, rising from $10.46 per hour to $19.45 per hour” (“DACA Factsheet”). By raising the average wages of undocumented workers through distributing more DACA, the incentive for employers to exploit cheap labor diminishes. This reduces the downward pressure on wages for all workers, including legal citizens and immigrants, who may have previously been forced to accept lower pay to compete with undocumented workers. Additionally, employers will be motivated to invest in better working conditions in order to attract and retain skilled workers. This can lead to improvements such as safer workplaces, reasonable hours, and benefits like healthcare and paid leave. As a result, raising wages for undocumented workers could indirectly benefit all workers by setting higher standards across industries. Furthermore, increased wages for DACA recipients translate to greater consumer spending power. This creates a ripple effect as they purchase goods and services and contribute to tax revenue, which leads to job creation and economic growth that benefits everyone. 

For far too long, a shadow was cast on the American Dream for undocumented immigrants, who were compelled into exploitative jobs and marginalized by their illegal status. Despite alleviating labor shortages, starting businesses, and bolstering consumer spending, their economic contributions remain undervalued by the U.S. public. However, by granting them legal status, we can halt this downward spiral and unleash the full potential of undocumented workers. 

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