Immigrants and Median Income

Correlation Between Foreign Born Population and Median Income

Discussion:

States with the most immigrants- including both documented and undocumented immigrants- have median incomes more than $11,000 higher than the states with the fewest. The correlation is quite strong. For example, immigrants make up less than 10% of the populations of each of the 12 states with the lowest median incomes and less than 5% of 10 of the lowest 12 states while immigrants make up more than 10% of the populations of 7 of the 9 states with the highest median incomes.

It is important to note that this correlation does not prove that having more immigrants causes median income to rise. It is just as plausible that it works the other way around- states with higher median incomes attract more immigrants. That said, the correlation is so strong that leaves no doubt that immigration is associated with, and compatible with, high median income. In reality, it is likely that the correlation is partly the result of immigrants seeking wealthy states to move to, partly the result of immigrants boosting up the economies of the states they move to, and partly the result of booming economies leading employers to seek to hire from a global pool rather than being limited to a local one.

Also, it is interesting to compare this chart with the chart showing the correlation between median income and undocumented immigrant population. Where states with the most undocumented immigrants tend to have a median income that is approximately $5,000 higher than the states with the fewest, states with the most immigrants- including both documented and undocumented immigrants- have median incomes $11,000 higher. That suggests that allowing people to come out of the shadows may increase their positive effect on median income.

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Correlation Between Foreign Born Population and Median Income

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