Analysis of current laws

Notre Dame, IN March 7, 2008

The Institute for Latino Studies is pleased to announce the release of SB 345/HB 1219: Economic and Demographic Impacts on Indiana, a policy brief describing the effects of proposed legislation aimed at controlling unauthorized immigration currently being considered by the Indiana Legislature.

The report highlights the possible unintended consequences that this law could have on the short- and long-term economic cycles of production and consumption and on the demographics of Indiana. Many of these unintended consequences are the result of common — but incorrect — beliefs about the characteristics, costs, and economic effects of immigration.

If this law were to be successful in its stated aim of expelling undocumented immigrants from the state, it will directly and immediately affect some 153,000 people (immigrants and their families), 2.6 percent of Indiana’s population.

Potential economic effects could include:

• A sudden increase of up to 44,000 vacant dwellings on the market — 2 percent of the housing stock.

• The loss of 87,000 workers, or 2.2 percent of the overall labor force, concentrated disproportionately in the food, manufacturing and construction sectors.

• A $5 billion reduction to the State’s gross domestic product.

• A $2.3 billion decrease in personal income in Indiana.