A number of recent studies have illustrated that opening a door for undocumented immigrants to earn legal status and, ultimately, citizenship would significantly enhance the U.S. economy.1 This report goes further, examining not just the U.S. case but also the economic impact of allowing immigrants to gain full citizenship in other countries in North America and Europe. The evidence is clear: A pathway to citizenship free of obstacles and undue delays helps immigrants integrate into the labor market and increase their earnings. These increased earnings and the corresponding added tax revenue would help grow the economy, which yields benefits for native-born citizens too. But generally understanding that pro-citizenship policies have positively affected a range of economies is only the first part of the inquiry. The next step is evaluating how the United States can maximize the potential economic gains from such policies. After demonstrating that granting citizenship carries positive economic impacts for an array of countries, this report delves deeper to explore how to maximize the gains from citizenship. The literature on new and old immigrant-destination countries shows that the clearer the pathway to citizenship, the greater the gains, and that the optimal waiting period for citizenship is roughly five years. Placing significant restrictions and lengthy delays on immigrants’ ability to become citizens diminishes the size of their ultimate economic premium for two reasons. The number of years that an immigrant can work for higher wages as a naturalized citizen declines, and immigrants have fewer incentives to invest in training and new skills as they age. Also, the best and the brightest immigrants may leave for their home countries or other, more welcoming countries. But the goal is not simply to maximize individual naturalized citizens’ contributions. It is also to encourage the greatest number of people to naturalize so that the country can reap the biggest economic benefit possible. After all, the economic gains will have little overall impact on a country’s economy if few people are able to actually achieve citizenship. If maximizing the economic benefits of immigration reform is a priority for U.S. policymakers, it follows that they should adopt a clear, achievable, and relatively short pathway to citizenship that encourages the most eligible individuals to naturalize.2 However, legislation presently before Congress, such as the Senate-passed immigration reform bill, proposes a far-longer pathway to citizenship—a minimum of 13 years—than is optimal. This pathway also comes with $2,000 in fines and numerous application fees, all of which could serve to reduce the economic premium from citizenship and the number of people who will naturalize

Publication details and link to source: Pieter Bevelander and Don J. De Voretz, ‘The Economic Case for a Clear, Quick Pathway to Citizenship: Evidence from Europe and North America’, Center for American Progress, January 2014.