The Costs of Brain Waste among Highly Skilled Immigrants in Select States
Highlights
Brain waste among highly skilled immigrants costs U.S. states billions in forgone earnings annually, with Florida posting the highest underutilization rate, as these state fact sheets show.
- Brain waste represents the underutilization of college-educated individuals, who either work below their skill levels or are unemployed.
- The eight study states—California, Florida, Michigan, New York, Ohio, Oregon, Texas, and Washington—together accounted for more than 57 percent of the $39.4 billion in forgone annual earnings among highly skilled immigrants nationally.
- Florida had the highest rate of immigrant brain waste (32 percent) among the states examined; Michigan and Ohio had the lowest (20–21 percent), reflecting wide variation in immigrant population composition and state economic conditions.
- California and New York had the greatest absolute losses: California's highly skilled immigrants forgo $9.4 billion in annual earnings, translating to approximately $700 million in lost state and local tax revenues.
Across the United States, nearly 2 million immigrants with college degrees are unemployed or stuck in low-skilled jobs. This skill underutilization—a phenomenon also known as “brain waste”—varies significantly by state. These fact sheets explore the key factors underlying brain waste and estimate the annual earnings and state and local taxes that are unrealized as a result of this skill underutilization for highly skilled immigrants living in eight states: California, Florida, Michigan, New York, Ohio, Oregon, Texas, and Washington State.
The fact sheets accompany a national report on skill underutilization, Untapped Talent: The Costs of Brain Waste among Highly Skilled Immigrants in the United States.
The eight states were selected because they represent a mix of traditional immigrant destinations (California, Florida, New York, and Texas), two relatively new-destination states (Oregon and Washington), and two industrial states that have recently sought to attract skilled immigrants (Michigan and Ohio). Together, these study states accounted for more than 57 percent of the $39.4 billion in forgone annual earnings that highly skilled immigrants experienced across the United States.
See below for links to individual state fact sheets.
Table of Contents
Key Findings
I. Highly Skilled Immigrants by the Numbers
II. Economic Cost of Brain Waste
III. Factors Driving Brain Waste
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.
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