Do Undocumented Immigrants Get Paid Less?

Yes, undocumented immigrants generally get paid less compared to U.S.-born workers and legal immigrants.

On average, the hourly wages of undocumented workers are significantly lower. Estimates suggest their wages are 42 percent lower than the wages earned by U.S.-born workers and legal immigrants. This substantial wage gap largely reflects various underlying differences between these groups of workers.

Factors Contributing to Wage Disparities

The observed difference in wages is not solely due to immigration status but also stems from a combination of factors that often distinguish undocumented workers from their U.S.-born and legally authorized counterparts. These factors can include:

• Limited Job Opportunities: Undocumented workers may face restrictions in accessing formal sector jobs, often leading them into industries such as agriculture, construction, hospitality, or domestic work, which are typically characterized by lower wages and fewer benefits.
• Vulnerability and Exploitation: Due to a lack of legal protections and a potential fear of deportation, undocumented workers can be more susceptible to wage theft, unsafe working conditions, and payment below the minimum wage.
• Reduced Bargaining Power: Their legal status can severely limit their ability to negotiate higher wages or demand better working conditions, as asserting rights might carry the risk of job loss or legal repercussions.
• Skill and Education Levels: While not universally true, some undocumented workers may have different average levels of education, language proficiency, or specific skill sets that, when combined with other factors, can influence their earning potential.
• Discrimination: Undocumented status can also contribute to discrimination by employers, further suppressing wages.

Understanding the Wage Gap

The disparity highlights complex dynamics within the labor market. While individual skills, industry choices, and general market conditions play a role, the legal vulnerability of undocumented workers significantly impacts their economic outcomes. This means that even for similar work, their wages can be substantially lower due to their unique position in the labor force.

This table visually summarizes the wage difference, indicating that undocumented workers earn approximately 58% of what U.S.-born workers and legal immigrants earn per hour.