Mass deportation is often framed as a pro‑worker policy. Remove unauthorized immigrants, the argument goes, and native wages will rise as labor supply contracts. This logic is intuitive, politically potent, and economically incomplete.
Mass deportation is a massive market intervention. When examined through the lens of labor markets, production complementarities, and historical evidence, mass deportation emerges not as a wage‑enhancing reform but as a broad negative shock—one that reduces output, raises prices, and ultimately leaves most American workers worse off.
Current proposals target roughly 11 million unauthorized immigrants, of whom an estimated 8.5–10.8 million participate in the labor force. The scale alone distinguishes this agenda from prior enforcement efforts. Economic models from the American Immigration Council and the Penn Wharton Budget Model estimate that removing workers at this magnitude would shrink U.S. GDP by between 2.6–6.8%—losses comparable to, or exceeding, those of the Great Recession. These are not abstract macroeconomic projections. They reflect concrete disruptions in industries where unauthorized workers are deeply embedded and difficult to replace.
From a first-principles perspective, forcibly removing 8–10 million mostly prime‑age workers is a negative labor supply shock: it shrinks hours worked and productive capacity, raises prices in sectors where labor cannot be quickly substituted, and destroys the specific capital and complementarities that make those workers especially productive. Because unauthorized workers are concentrated in labor‑intensive, hard‑to‑automate industries, the lost output is not easily offset by capital deepening or native labor. Instead, the burden is split between consumers paying higher prices, complementary workers earning lower real wages, and owners absorbing lower profits.
Construction and agriculture already show these effects in miniature. In construction, unauthorized immigrants make up about 19% of workers and more than 30% in trades like roofing, drywall, and concrete, so mass deportation would pull roughly 1.5 million workers—about 14% of the sector’s workforce—off job sites, slowing projects and driving up building costs. In agriculture, unauthorized workers account for nearly one quarter of farm labor nationally and closer to one third in harvesting and sorting roles, so deporting them would eliminate on the order of 225,000 agricultural workers, reduce output, and raise food prices. One modeling exercise projects food price inflation approaching 9% under large‑scale deportation scenarios. Hospitality, childcare, cleaning services, and food preparation could together lose close to one million workers, and because these jobs are physically demanding, irregular, and geographically fixed, employers have historically struggled to replace immigrant workers with natives at wages consumers will tolerate.
History reinforces these projections. During the expansion of the Secure Communities program between 2008 and 2013, interior enforcement intensified in many jurisdictions. Research from that period shows that increased deportations reduced construction activity and raised housing prices by 5–10% in affected areas, with no lasting wage gains for native workers. Short‑term labor scarcity did not translate into durable improvements in worker welfare. It translated into lower output and higher prices.
Advocates of mass deportation often acknowledge these disruptions but argue that native workers will benefit through higher wages. In the short run, some low‑skill native workers may indeed experience modest wage increases, typically on the order of 1–3%. However, these gains are both small and temporary. Firms respond to labor shortages not by bidding wages up indefinitely, but by reducing hours, cutting output, automating, or closing altogether. As production contracts, labor demand falls, erasing the initial wage bump.
Meanwhile, higher‑skill workers—who make up roughly two‑thirds of the U.S. labor force—face clear losses. Because low‑skill and high‑skill labor are complements in production, removing workers at the bottom of the skill distribution reduces the productivity of those above them. The Penn Wharton Budget Model estimates long‑run wage declines of 0.5–2.8% for higher‑skill workers following mass deportation. These losses are diffuse and less visible. This makes them politically easier to ignore.
Fiscal effects compound the damage. The Baker Institute estimates that the upfront cost of mass deportation would exceed $315 billion, with ongoing annual enforcement costs approaching $88 billion. Implementing such a policy would require a dramatic expansion of federal enforcement capacity, potentially adding hundreds of thousands of new agents. These expenditures would be financed by taxpayers while producing no corresponding increase in productive capacity.
At the same time, deportation eliminates substantial tax revenue. Unauthorized immigrants contribute approximately $46.8 billion annually in federal taxes and $29.3 billion in state and local taxes, including payroll taxes that support Social Security and Medicare. Removing these contributors worsens long‑term fiscal pressures rather than alleviating them.
The social spillovers are equally significant. More than five million U.S.‑citizen children live in households with at least one unauthorized parent. Deportation often cuts household income in half overnight, destabilizing families and increasing reliance on public assistance. These downstream costs rarely appear in enforcement‑first rhetoric, but they are real and persistent.
The political appeal of mass deportation lies in its visibility. Raids, removals, and enforcement statistics provide tangible signals of action. Economically, however, deportation functions much like a cartel—restricting labor supply to benefit a narrow group while imposing diffuse costs on consumers, taxpayers, and complementary workers. Property owners do not possess a monopoly on physically demanding work, nor does excluding immigrants magically reassign those jobs to natives at higher productivity.
Labor markets coordinate through specialization and price signals. Immigrant workers tend to specialize in tasks that complement native labor, allowing firms to expand output and natives to move into supervisory, technical, and customer‑facing roles. Deportation disrupts this process, replacing cooperation and coordination with force. This shrinks the economic pie, and so it cannot simply redistribute jobs and wages more fairly.
If the goal really is higher wages and sustained prosperity, a more productive alternative is straightforward and supported by the most basic economic knowledge. Expand legal work visas, price them transparently, and enforce contracts rather than people. This means treating migrant workers like any other market participants. Give firms legal, tradable access to labor through visas, then police wage theft, recruitment fraud, and safety violations through contract and labor law enforcement—rather than relying on raids and deportation as the primary compliance tool.
This need not neglect the concerns of those concerned about border security. For example, visa auctions could fund the resources needed for an orderly border while allowing labor markets to function. Employment verification could occur post‑hire, protecting property rights while discouraging exploitation.
Mass deportation does not elevate American workers. It impoverishes them—quietly, broadly, and predictably. An economy grounded in voluntary exchange and secure property rights requires labor mobility, not forced scarcity. If the objective is abundance—more homes, lower prices, and rising real wages—the evidence points decisively away from deportation and toward legal, market‑driven labor flows.
READER COMMENTS
David Henderson
Jan 23 2026 at 1:53pm
Very well reasoned. Thanks, Tarnell.
Tarnell Brown
Jan 23 2026 at 3:54pm
I very much appreciate your kind words, David.
john hare
Jan 23 2026 at 7:04pm
I would suggest that one effect of keeping millions of people illegal is to mask the actual criminals. Looking for one criminal among a mass of one thousand people that are illegal by fiat makes that criminal very hard to find. One criminal among fifty that are illegal and nine hundred fifty that are doing well would be much easier.
Tarnell Brown
Jan 23 2026 at 10:40pm
This is backwards on law, crime, and economics. Merely being present in the U.S. without status is a civil/administrative violation, not a standalone criminal offense; most undocumented people are removable, not “criminals” in the legal sense. Empirically, states with more undocumented immigrants saw larger drops in violent crime from 1990–2014, and detailed Texas data show undocumented immigrants have lower felony arrest rates than natives. Treating millions of workers as presumptive criminals is just bad policing: it wastes resources on low‑risk people while making communities less willing to cooperate, which makes it harder to find serious offenders.
And none of that rescues the economics. As I argue in the piece, deporting 8–10 million mostly prime‑age workers is a huge negative labor‑supply shock: it shrinks output, raises housing and food prices, and erodes the productivity of complementary workers. You don’t fix that by relabeling it as crime control. If your concern is criminals, the logical response is legal status plus targeted enforcement, not an economy‑wide experiment in making everyone poorer to make bad policing look easier.
john hare
Jan 27 2026 at 4:05am
Not sure why my computer doesn’t display all the comments at first. After refresh your reply became visible. I think we are going the same direction with different phrasing. (yours is better)
Alex S.
Jan 23 2026 at 7:36pm
Very good and timely post! Thank you.
Joseph
Jan 24 2026 at 1:35pm
I am not surprised but still very disappointed that you have not mentioned any negative externalities of having a massive number of illegal immigrants in the country. Listing positives only is not a proper analysis, it’s propaganda, sorry. It’s not enough to just claim that you only consider the economy, it’s never that simple. And GDP – please, don’t forget to consider per capita.
Your own text mentions 5 million kids in households with at least one illegal. Well, who is paying for their education? Their healthcare? I.e. can you prove these people are actually net positive for the country?
Tarnell Brown
Jan 24 2026 at 2:01pm
Immigration’s net positives are robust in the data, especially via GDP growth, deficit cuts, and labor contributions, even for unauthorized flows. My EconLog post highlighted deportation’s labor shocks; critics ignoring positives skew propaganda-like. Let’s crush the one‑sided take with evidence—and with the replication notes that carefully show why your argument doesn’t hold up.
Net Fiscal Positive
Recent immigration surges (including unauthorized) cut federal deficits by roughly $0.9 trillion over 2024–2034 via higher revenues outpacing spending, according to CBO—boosting payroll and income taxes while filling jobs. Unauthorized immigrants alone paid on the order of $100 billion in taxes in recent years, and shifting them into legal, higher‑productivity work raises that by tens of billions annually as wages and compliance improve. Over lifetimes (immigrants plus their children and grandchildren), the mainstream empirical literature finds a net positive fiscal impact across levels of government, especially when you count second generation outcomes.
GDP and Per Capita Gains
Immigration adds trillions to GDP (CBO projects around $8–9 trillion over a decade), and per capita income rises because the inflow is disproportionately working‑age in a rapidly aging native population. Dallas Fed and other macro work find that lower immigration has already weighed on GDP growth with little benefit to per capita income, while maintaining robust inflows supports growth without stoking persistent inflation. Mass deportation would reverse these gains, shrinking GDP by an estimated 2–7% and dragging per capita GDP down rather than up once you factor in lost output and capital adjustment.
Kids’ Costs in Context
Yes, roughly 5 million U.S.-citizen kids in mixed‑status households use public schools and health services, and that is not free. But their parents also pay substantial state, local, and federal taxes—sales taxes, property taxes (directly or via rent), and payroll taxes—such that the fiscal balance depends heavily on legal status and earnings, both of which policy can change. When you move unauthorized workers into legal status, their wages and tax contributions rise, their children’s long‑run earnings jump, and the long‑run fiscal ledger tends to swing more clearly positive.
Why the Comment Misses the Mark
Your objection treats “costs” for education and healthcare in isolation, as if taxes, output, and long‑run human‑capital returns do not exist. That is exactly the error my replication notes document: when you actually go into the Secure Communities data, there is no “free lunch” for natives from deportation, and the supposed gains vanish once you do the math. The replication notes walk through the wage, price, and employment effects step by step, show precisely where simplistic “they’re a net drain” stories overreach, and make clear that a selective focus on visible public costs while ignoring tax payments, consumer surplus, and long‑run growth is not serious economic analysis.
john hare
Jan 25 2026 at 5:46am
Who is paying for the education and health care of your children? Can you prove that they will be a net positive for this country? And your neighbor down the street with several kids and seldom employed? Watch out for circular arguments!
In my local area, immigrants are a strong positive. I don’t trust that knowledge to be applicable nationwide without a lot more study than I am willing to do. I do note that many of the negatives are self (this nation) inflicted harm.
Joseph
Jan 25 2026 at 9:06am
Please don’t switch the subject. No idea how you know that illegals in your area are net positive, you’d need to know how much tax they pay. Do you really?
Guess what: I am an immigrant. Legal. Payed all charges involved and obtained citizenship. And yes, there are millions of people who are net negative fiscally, it’s unfortunate but it’s not a reason to increase the number of such people in the country. “Hey, we have our own people on benefits, why not allow in a few more” is a terrible argument.
My original comment was related to the failure to even mention, let alone take into account, negative effects. Nothing in your reply addresses this.
Jon Murphy
Jan 25 2026 at 9:53am
John’s comment actually directly addresses your comment, but that’s fine.
The question I have is: what are these negative effects and negative externalities you mention. You blame Tarnell for not discussing them, but you don’t either. You merely assert they are there.
Joseph
Jan 25 2026 at 1:51pm
Jon,
You know full well what negatives are regularly mentioned with regards to immigration, both legal and especially illegal. I also know you are a smart man, there is absolutely no need to send me googling to make sure I don’t miss major points. I have mentioned one by the way – money spent on children of illegals which may well be comparable with “taxes” (real or not) paid by these people. Last time I checked states were spending roughly £20K a year per child. I have my doubts their parents pay as much in tax.
And of course I am not a published author on econlib – Mr Brown is. I won’t apologise for expecting certain standards. Writing only “from a market theory POV” as Steve put it is not good enough for me.
john hare
Jan 25 2026 at 11:31am
An earlier reply probably ran afoul in moderation. The majority of the negative externalities are self inflicted. The ability to abuse welfare in whatever form is an own goal and immigrants are far from the only offenders. Per capita for working citizens goes up when there are entry level workers to handle the less skilled work. Using your $40.00 an hour worker to do $15.00 an hour work prevents that worker from being more productive and earning more. Who is paying for your kids education and can you prove that a net positive?
john hare
Jan 25 2026 at 11:33am
The previous comments popped up as i posted this. Apologies for addressing a different issue.
steve
Jan 25 2026 at 12:11pm
Fromm my POV Tarnell is writing from the POV, first, of market theory which is that a free market approach to labor will provide the best possible outcome rather than trying to pick and choose the outcome you want. He points out some of the positives from this approach and does acknowledge that there would be some losses like with low income earners having temporary losses. He does not offer comprehensive lists of positives and negatives but that would require many pages of writing. He acknowledges that there are other possible negatives that people may not like and offers possible solutions in his second and third to last paragraphs.
Steve
john hare
Jan 26 2026 at 5:34am
One of the problems with the illegals hysteria is the echoes from history. Blacks within living memory accused of similar, not even going back to slavery justifications. Jews worldwide, even up to the present in some cases. Italians about a century ago, reference WOP. (insult derived from With Out Papers) Irish in the 1800s when there were signs in some windows that “Irish need not apply.” The list is extensive of finding someone else to blame.
It should be undeniable that there are problems in this country. Also that our current standard of living is the highest in recorded history. (Validated history, not legends) Solving the actual problems starts with identifying real problems. That is more difficult when obscured by manufactured problems.
I can work on fixing me. Fixing others is not in my life description, though I can occasionally help them help themselves.
Joseph
Jan 31 2026 at 12:22pm
Sorry, the editor displayed a reasonably formatted message. All paragraphs, numbering etc. were gone on submitting 🙁
Gray Brendle
Feb 2 2026 at 2:45pm
Why does there seem to be such a strong public aversion to the current regime of undocumented immigration? One plausible explanation is not cultural or ethnic, but structural: our social safety net is designed in a way that places certain households squarely in a fiscal “sweet spot.”
Let us begin with a few assumptions. First, assume we are all economists, or at least willing to reason like them. Second, assume that people respond to incentives. Finally, assume that neither the reader nor I condemns individuals who respond rationally to the incentives created by public policy. The issue here is not individual behavior; it is system design.
Now imagine a group of four people—intentionally not called a “family,” because that classification would disrupt access to certain benefits. That fact alone should give us pause. The group consists of a skilled construction worker earning $1,000 per week and a woman who is the mother of two U.S.-born children, working as a domestic and earning $350 per week. There are four people in total.
The adults are not married. One of them is not a citizen, which one does not matter for the analysis. The man files taxes as a single individual. The woman files as head of household and claims both children. This arrangement is legal under current law.
This group pays substantial taxes—payroll, sales, and income taxes. However, once refundable credits and benefits are accounted for—specifically the Earned Income Tax Credit, the Child Tax Credit, SNAP benefits, and Medicaid coverage for the children—the group receives more than $5,000 above what it pays in taxes. In effect, the household achieves approximately $77,000 in cash-equivalent purchasing power, despite earning far less in market income.
Importantly, this group has broken neither the letter of the law nor committed fraud. At most, they have violated the spirit of certain policies by structuring their household in the most financially advantageous way available to them.
Now consider a second group of four: two American citizens, both high school graduates, married, working full-time, and raising two children. This household receives few, if any, means-tested benefits and must purchase private health insurance. To reach the same effective purchasing power as the first group, this second household would need to earn approximately $120,000 per year.
It is widely understood—and empirically true—that undocumented workers pay taxes. The point is not that they contribute nothing. The point is that the system allows —and often rewards —strategic household structuring, and that this structuring frequently benefits those who do not—or cannot—organize their lives around traditional family formation.
Again, I do not fault individuals for responding to incentives. I do, however, find it deeply troubling that public policy has evolved in ways that discourage marriage, penalize household consolidation, and reward the fragmentation of family units. This outcome is not accidental, and it is unlikely to resolve itself without deliberate reform.
nobody.really
Feb 9 2026 at 2:57am
Sure, pretty much any aid creates perverse disincentives, by diminishing the burdens of needing aid. Even government-provided police reduce the incentives for people to minimize their risk of being victimized by criminals.
But what does this have to do with immigration and the labor supply? Do native-born US citizens not have an equal incentive to pursue “strategic household structuring” as immigrants? As far as I can tell, this critique–even if accurate–misses the point of the discussion.
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