The Economic Value of Citizenship for Immigrants in the United States
Highlights
Naturalized U.S. citizens earn up to 70 percent more than noncitizens, yet cost and language barriers leave an estimated 8 million eligible immigrants without citizenship.
- Naturalized citizens earn 50 percent to 70 percent more than noncitizen immigrants, are less likely to be unemployed, and weathered the economic crisis better—earnings fell 5 percent from 2006 to 2010, versus 19 percent for noncitizens.
- Most of the earnings gap reflects naturalized immigrants' higher education, language skills, and U.S. work experience. But citizenship itself appears to carry a wage premium of at least 5 percent, larger for Latino immigrants and women.
- An estimated 8 million lawful permanent residents are eligible to naturalize but have not; barriers include the $680 application fee—higher than most OECD countries—low English proficiency, and limited process knowledge.
- U.S. naturalization rates lag behind most English-speaking receiving countries, including Australia and Canada, which have made more active efforts to promote citizenship among eligible immigrants.
Although citizenship is an important milestone along immigrants’ journey toward full political and economic membership in the United States, the total share of naturalized citizens in the U.S. immigrant population is low in comparison with other Organization for Economic Cooperation and Development (OECD) countries. This report examines the role of naturalization as both an indicator and facilitator of successful integration. It asks why immigrants decide to naturalize, what benefits they can expect to receive as a result, and why a substantial share of immigrants who appear to be eligible to naturalize are unable or choose not to do so. In particular, the report examines the advantages naturalized immigrants may have in the U.S. labor market.
The report finds that naturalization rates depend on a complex interplay of factors that shape immigrants’ ability to meet eligibility criteria on the one hand and their motivation to naturalize—ranging from gaining political rights and economic benefits to personal and social considerations—on the other. The authors suggest that the cost of naturalizing in the United States, which is high compared with other OECD countries, presents a significant barrier to naturalization, especially among low-income immigrants. They also point to low English proficiency and lack of knowledge about the application process as additional barriers.
In general, immigrants who are motivated to naturalize tend to possess characteristics associated with economic success. According to the scholarship highlighted in this report, however, citizenship appears to have a positive impact on immigrants’ incomes even after controlling for observable differences between naturalized citizens and noncitizens. Findings show that naturalized citizens have higher employment rates and earn between 50 and 70 percent more than noncitizens. Naturalized citizens also appear to have weathered the effects of the economic crisis more successfully than their noncitizen counterparts.
Table of Contents
I. Introduction
II. Who Naturalizes, and Why?
Determinants of Naturalization and Barriers to Citizenship
III. What is the Economic Value of Naturalization?
IV. Conclusion
About the National Center on Immigrant Integration Policy
The Center is a national hub connecting policymakers, educators, community leaders, and service providers with evidence-informed policy research, technical assistance, and data to advance effective immigrant integration at U.S., state, and local levels.
About the U.S. Immigration Policy Program
The U.S. Immigration Policy Program provides analysis of U.S. immigration pathways, the impacts of enforcement and other policies, and the characteristics of immigrant populations.
