Almost one in four of dallas’ 1.3 million people were born outside the United States, but that doesn’t reveal much about them. What is important to know is that many of our friends, neighbors, and co-workers come from somewhere overseas—the economically free and vibrant city of Dallas ranks at or near the top among U.S. cities as a magnet for newcomers.
Being born in Arkansas or Ohio raises few eyebrows. Yet the same can’t be said for being born in another country—at least not in the current political climate, with its white-hot rhetoric stoking an Us v. Them rancor over immigration. Echoing an anti-immigrant sentiment that goes back to the 19th century, some contemporary nativist voices among the Us portray the Them from other countries as a threat to America, jeopardizing our safety, our jobs, our standard of living, our public services, and our democracy.
But learning more about the foreign-born living in Dallas and how they compare to those born in the USA can illuminate the controversial issue. The Census Bureau’s annual American Community Survey (ACS) provides a treasure trove of data on how the people in Dallas and across the country live and work.
The ACS collects information on a wide range of characteristics for both the U.S. and foreign-born populations. In the latest survey, which covers 2022, we decided to concentrate on key data points relevant to the local economy.
What immediately jumps out is that the foreign-born come here to work. According to the ACS, 68.1 percent held a job in 2022, compared with 65.9 percent for those born in the United States. Labor-force participation rates for both groups are around 70 percent, implying that foreign-born are slightly less likely to be unemployed.
The median household income for the foreign-born was $67,357—about 11 percent less than those born in the United States. Education is probably a factor. Among the foreign-born, 43 percent did not graduate high school, compared with 19 percent for natives of the United States. For those with bachelor’s degrees, the foreign-born were at 21.8 percent and the native born at 38.1 percent.
The poverty rate was slightly lower for the foreign-born than for U.S. natives.
In Dallas, the foreign-born trail those born in the United States by less than three percentage points in homeownership. When it comes to median home values, however, their properties lag 33 percent.
Naturalized citizens and green card holders (authorized to work) are eligible for Social Security and some other government benefits. In Dallas, 13.9 percent of the foreign-born received payments, compared with 21.9 percent for the American-born. The immigrants’ average Social Security income is about 25 percent lower.
An Asset to the Economy
The prospects for jobs, spending money, a home of their own, and retirement income all point to the benefits people born in other countries gain from living in Dallas. That’s good for them—and what about for the rest of us?
Additional workers and their spending help drive growth in North Texas’ economy. This is true for newcomers who arrive from other states and just as true for those who come from other countries.
The ACS data provides a rough sketch of what Dallas’ foreign-born workers contribute to the local economy. They help build houses and offices, filling more than 60 percent of construction jobs. They help make goods, with more than 40 percent of manufacturing employment. They work in hotels and restaurants, making up better than a third of the labor force in the arts, entertainment, recreation, accommodation, and food services category.
Overall, Dallas’ foreign-born residents work in every sector, doing nearly 30 percent of the work that keeps North Texas prosperous. Earlier this year, the American Immigration Council, working with Dallas’ city government, estimated the immigrant workers’ total income at $10.7 billion in 2022, which injected $8.2 billion in after-tax spending power into the private economy.
Without Dallas’ foreign-born residents, three in 10 jobs would go vacant, and billions in spending power would evaporate. Labor shortages would force businesses to raise prices, and some business establishments would close, costing more jobs, while others would move more jobs overseas. Loss of tax revenue would erode support for law enforcement and other services.
An ardent nativist might be fine with the downward spiral of a shrinking economy, perhaps vainly hoping American-born workers and consumers would fill the gaps. The nation simply doesn’t have enough idle hands willing and able to replace labor from other countries. Dallas and the rest of the country are economically benefited by foreign-born residents, and welcoming more of them would strengthen our economy further.
W. Michael Cox is professor of economics in the Bridwell Institute for Economic Freedom at Southern Methodist University’s Cox School of Business. Richard Alm is writer-in-residence at the Bridwell Institute.
Author
