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1 Latino Contributions to Oregon

Lati no Contributi ons to Oregon Strengthening Our State Economy

OREGON'S IMMIGRANT RIGHTS ORGANIZATION


Contents

Forward 2

Methodology and Terminology 3

Executive Summary 4

Section 1: Latinos in Oregon 7The Growing Latino Population in OregonThe Shift in the Latino PopulationLatinos Today in Oregon

Section 2: Latinos in the Workforce 14Latinos Work in Key Occupations and Industries in OregonImmigrant WorkersImmigrants Complement Native WorkersDamage Done to Oregon if Immigrants LeaveBarriers for Latino WorkersLatino Workers and the Future of Oregon

Special Report: Restoring Drivers’ Licenses for All 25

Section 3: Latinos as Entrepreneurs 27Latino Entrepreneurs Contribute to Business growth in OregonLatino Businesses Support Oregon’s Main StreetBarriers Facing Latino and Immigrant Entrepreneurs

Special Report: Naturalization 32

Section 4: Latino Contributions to the State Economy 35Latinos are a Growing Consumer ForceFueling Demand, Changing SupplyLatinos as Home-buyers: Supporting the Housing MarketLatinos Support the State as Taxpayers

Section 5: Drivers of Prosperity 39Allocation of State Funding for Naturalization EffortsDriver’s License RestorationState Advocacy for Federal Immigration ReformPromote Business Creation and Entrepreneurship Among ImmigrantsDrivers of Prosperity


ForwardBy Francisco López, Executive Director of Causa

This report, Latino Contributions to Oregon: Strengthening our State Economy, is designed to help our state’s residents, citizens, and elected leaders gain a better understanding of the contributions Latinos make to Oregon’s economic growth and prosperity.

We seek to honor and celebrate the contributions made by Oregon’s Latinos. This report also seeks to recognize the difficulties Latinos face in our communities. While reading this report I asked myself where we could find hope in the midst of these difficulties. There is a very popular saying in Latin America that reminded me of what this report is all about: “la esperanza es lo ultimo que se muere”; hope dies last. Hope is very much alive among the Latino community in Oregon, and this is a source of great inspiration for me and for all Oregonians.

Latinos in Oregon are a diverse mix of first generation immigrants and long time residents. They serve as contributors to our state’s economy as workers, taxpayers, entrepreneurs, and consumers. With a rapidly growing Latino population, Oregon is the perfect place to examine our contributions and provide insight into how Latinos contribute in other states and nationwide.

Latinos have become an increasingly integral part of our state, and will help shape and develop the shared future of Oregon. It is incumbent upon us to come together and build a state that fosters the well being of Latinos and all Oregonians. We hope that leaders and elected local and state officials will use this report as a foundation to make sound policy decisions for Oregon.

On behalf of Causa’s Staff and Board, I would like to thank you for your interest and taking time to read this important report. I also would like to express my deep appreciation to Robin Wright, Causa’s Policy Analyst and the primary author of this report for her hard work and dedication, and for teaching all of us that the Latino story is part of the great Oregon story.

Gracias,

Francisco LópezExecutive DirectorCausa Oregon


Methodology

This report is a synthesis of the current research about Latinos and Latino immigrants in Oregon and the U.S. and Causa’s analysis of data published by a variety of government agencies. We primarily draw upon data from the 2010 Decennial Census and the 2010 3-year estimates from the American Community Survey, both of which are administered by the US Census Bureau, as well as data from the Bureau of Labor Statistics, Department of Homeland Security, United States Citizenship and Immigration Services, and the Small Business Administration. Non-partisan policy think tanks such as the Migration Policy Center, the Kauffman Foundation, Pew Hispanic Center, and the Brookings Institute, as well as academically published articles, provide further state and national data.

The 2010 American Community Survey estimates are our primary source for Oregon specific data about the Latino and Latino immigrant community. The ACS is the only nationally administered survey that provides detailed state-specific information about the employment, origins, status, and demographics of immigrants. We utilize the 3 year estimates in this report (an aggregate of results from the 2008, 2009 and 2010 ACS surveys) because they provide smaller margins of error compared to the 1 year estimates while remaining more current than the 5 year estimates. However, there are some downsides to using the ACS. When dealing with small populations, such as immigrants from a specific area or country, the accuracy of the data does decrease. Furthermore, the ACS only distinguishes between foreign born citizens and non-citizens, which makes it impossible to look at differences amongst the non-citizen immigrant community. Finally, the ACS is best utilized for comparisons between populations rather than for absolute population numbers, as it is a survey sent to a sample of the US population. The report therefore uses 2010 Census numbers when discussing population size and growth in the state of Oregon.

Terminology

In this report we use the words Latino and Hispanic interchangeably. Both words are used to denote an individual with origins in Mexico, Central America, or South America. Latino and Hispanic refer to a self-described ethnicity, meaning that Latinos and Hispanics can be of any race. Non-Latinos and non-Hispanics are individuals who do not identify as Latino or Hispanic and can be of any race. We use the words immigrant and foreign-born interchangeably to refer to someone who was born outside the United States but now resides within the United States. We use the word native born to describe those residents of the United States who were born in the United States. When speaking of immigration status, a naturalized citizen refers to someone born outside the United States who later gained citizenship. The term undocumented immigrant refers to someone residing in the US who does not have legal immigration status. Undocumented immigrant and other terms often fail to capture the complexity of many immigrants’ legal status. Immigration status is not static; many immigrants come on valid visas, or are in the process of applying for a temporary visa, legal permanent residency, or citizenship.


Latinos, as new Americans and long time residents, are a growing part of our community in Oregon. This report finds that Latinos play an important role in advancing the economy of Oregon and the well being of our communities through their contributions as workers, entrepreneurs, consumers, and taxpayers.

Latinos in Oregon

Oregon has long been a destination and home to Latin American immigrants and their descendants. Mexican mule-riders and vaqueros were trading in Oregon even before Oregon gained official statehood. Throughout the 20th century migration flows from Mexico and Latin America ebbed and flowed, but Latino immigrants and their descendants were putting down roots in communities across the state.

Census data shows that recent decades have brought increased migration to the state. Migration from Mexico and the rest of Latin America increased dramatically during the 1990’s; in Oregon, the immigrant population from Latin America nearly tripled between 1990 and 2000. Immigration from Latin America to Oregon peaked around the year 2000, and since then, the rate of immigration has gradually decreased.1

While migration has fallen in recent years, the Latino population in the state has continued to grow. Between 2000 and 2010, the Latino population grew 63%, from 275,314 to 450,052. This growth accounted for 43% of the total population growth for the state of Oregon over the last decade, and Latinos now make up 12% of the total population.2 The dramatic population

increase is largely due to growth in the native born population, which accounted for 65% of the total growth in the Latino population since 2000.3 Now, nearly one in four children under age 5 in Oregon are Latino, and 21% of students enrolled in Oregon k-12 public schools are Latino.4 While the large majority of these students are U.S. citizens, many of them have immigrant parents. In Oregon, approximately 1 in 5 native-born children live with at least one foreign-born parent.5

Latinos in Oregon are a diverse mix of first generation immigrants and long-time residents; 2010 American Community Survey data shows that of those who identify as Latino, a majority of them (60%) were born in the United States. Foreign-born Latinos make up the remaining 40%; of those, 16% are naturalized citizens and 84% are not naturalized citizens.6 Many Latinos live in households with mixed immigrantion statuses, meaning family members and relatives are a mix of native-born citizens, naturalized citizens, legal permanent residents, temporary workers, and undocumented immigrants.

Latinos in the Workforce

Currently, there are over 200,000 Latinos in the workforce in Oregon, representing 10.5% of the workforce. The highest percentage of Latino workers are employed in service occupations (27.8%), followed by natural resources, construction, and maintenance (20.8%), production, transportation, and material moving (17.9%), sales and office occupations (17.7%), and management, business, science and arts (15.7%). There were over 124,000 immigrants from Latin America in the

Executive SummaryLatino Contributions to Oregon: Strengthening our State Economy


labor force in Oregon in 2010, representing 6.3% of the workforce. Nearly two thirds of immigrant workers from Latin America are concentrated in service occupations (30.9%) and natural resources, construction, and maintenance occupations (28.7%), with a smaller number working in production, transportation and material moving (21.3%), sales and office occupations (10.2%), and management, business, science, and arts (9.4).7

Latino and Latin American immigrant workers represent a significant percentage of workers in a number of occupations. Latinos make up 58.8% of the workforce in farming, fishing, and forestry occupations, 28.7% in building and grounds cleaning and maintenance, 23.5% in material moving, 20% in food preparation and serving, and 16.6% in construction and extraction.8

Latino and immigrant workers help bridge the gap between the growing aging workforce and the smaller population of young native born workers. Latino workers in Oregon are younger on average, with a median age of 34.3 compared to 38.2 for the general population.9 Latinos also have higher work force participation, at 67.5% compared to 64.7% for the general population. Latino men aged 25- 54 (primary working age) have the highest participation rate of any age or ethnic group, at 91.5% compared to 89.3% for the total population.10

Studies show that Immigrant workers also increase the wages of the majority (90%) of U.S. workers.11 Immigrants with comparable levels of education bring unique skill sets that allow them to compliment, rather than compete, with most native workers. A majority (71.6%) of immigrants from Latin America living in Oregon report having limited English proficiency, and 60% arrive without a completed high school education.12 Immigrant workers encourage the specialization of native Oregonian workers, who occupy jobs that require high levels of communication in English. Immigrants also bring unique cultural, linguistic, and practical knowledge that allows them to diversify and expand already existing industries and occupations.

Undocumented immigrants are indispensable workers in key Oregon industries. While Oregon-specific data is unavailable, national studies show that undocumented immigrants are over-represented in occupations such as agriculture workers, maids and housekeeping workers, ground maintenance workers, as well as in construction occupations such as roofers, painters, maintenance workers, drywall installers, ceiling tile installers and tapers.13 Agriculture alone is a $3.65 billion dollar industry in Oregon, and agricultral goods are an increasingly important export product. Immigrant workers are integral to the continued growth and success of the agriculture, construction, and service industries in the state.

According to a study by the Perryman Group, if all undocumented immigrants left the state, Oregon would lose up to $3,389,646,682 in total expenditures, even after accounting for proper market adjustments. The state would additionally loose 19,250 jobs.14 Cities around the country that have enacted punitive anti-immigrant employment laws have already had negative results. A study found that these cities have worse business climates and fewer employees compared to those which enacted non-restrictive or “sanctuary” ordinances.15 Creating a welcoming environment for workers and businesses benefits all Oregonians, by boosting wages, employment levels, and tax dollars.

Latinos as Entrepreneurs

Latino business owners are helping drive the economic recovery in Oregon. There has been dramatic growth in the number of Oregon Latino business owners during the last decade. The results of the 2007 Survey of Business Owners released in 2010 show a 78% increase in the number of Latino-owned businesses from 2002 to 2007. There were 11,338 Latino-owned businesses in Oregon as of 2007, up from 6,360 in 2002. Oregon was among the 10 states with the highest Latino business growth rate, with a rate nearly double the national growthrate of 43.6% for Latino-owned businesses.16


The rate of growth for the number of Latino-owned businesses was over 4 times as much as total business growth in the state. The growth of Latino-owned businesses in Oregon is also outpacing growth in new businesses owned by Whites and Asians, which grew by 14.7% and 39.8%, respectively. As a result of this rapid growth, Latino businesses now make up 3.3% of all businesses in Oregon.17

Receipts from Latino-owned businesses are also growing. Latino-owned businesses had a record $1,655,864,000 in receipts in 2007, a 16.9% increase from 2002.18 While data about immigrant-owned businesses is relatively scarce, a 2008 report from the Small Business Administration suggests that immigrant-owned firms in Oregon had an income of over $549 million and made up 7% of the total business income for the state in 2000.19

Latino small business owners are playing an important role in the growth of Main Street businesses in Oregon. The majority of Latinos are owners of small businesses. Over 40% of Latino-owned businesses employ between 1 and 4 employees. This reflects the general trend in Oregon businesses; 48% of all firms in Oregon have between 1 and 4 employees.20 While there are substantially more business with 4 employees or less, 62% of sales from Latino-owned businesses were from firms with 10-99 employees.21

Latino Contributions to the State Economy

Latinos are part of the growing multicultural economy in Oregon, as businesses work to provide culturally specific and relevant services to consumers. Latino customers have fueled the growth of Latino-owned small businesses providing culturally specific food and clothing products, and linguistically and culturally relevant services in the real estate, healthcare, and banking industries.

In Oregon, Latinos had a purchasing power of $7 billion in 2009, a 660.9% increase from 1990.22 In the Salem Metro area alone, Latinos have a purchasing power of $955 million, accounting for

approximately 11% of the total purchasing power for the area.23 Nationally, Latino buying power is expected to grow by 48.1% by 2016, compared to 27.5% for the nation as a whole.24

Latinos represent a growing number of homeowners in Oregon. The number of Latinos owning homes in Oregon grew 87.7% between 2000 and 2010, while the number of White homeowners grew 6.5%.25 This dramatic growth in the number of Latino homeowners reflects both the substantial growth in the Oregon Latino population over the last decade, and the rising of number of immigrant homeowners in the state. Latino homeownership is expected to drive up homeownership levels nationwide; it is estimated that between 2002 and 2012, Latinos will represent 40% of first-time homebuyers in the U.S.26 While Census data is not available for immigrant populations, the American Community Survey shows that 38.4% of immigrants from Latin America residing in Oregon report being homeowners.27

Immigrants in Oregon contribute significantly to state GDP and funds through income and taxes. The Oregon Center for Public Policy estimates that undocumented immigrants in Oregon earned between $2.3 and $4.5 billion in 2011 and contributed $154 to $309 million dollars in state and federal taxes. Oregon employers paid an additional $121 to $243 million dollars in state and federal taxes on behalf of undocumented employees. 28

Drivers of Prosperity

Latinos are driving the growing diversity in Oregon. This poses both challenges and opportunities for state and local policy makers, businesses, schools, and communities throughout Oregon. Participation by Latinos and immigrants as workers, consumers, entrepreneurs, and taxpayers are essential for the continued progress of our state. Promoting integration and improving access to education, healthcare, transportation, and housing will serve as the drivers of prosperity that will allow Latinos in Oregon to further grow and contribute to Oregon’s economy.


Oregon has long been a destination and home to Latin American immigrants and their descendants. Mexican mule-riders and vaqueros were trading in Oregon even before Oregon gained official statehood. By the early 1920s, Oregon already had a small but significant Mexican community providing important labor for wheat, berry, nut, hop, beet, and other crop growers. During the 1940s Oregon farmers participated in the Bracero Program, which helped alleviate labor shortages during and after World War II by bringing in temporary workers from Mexico. Over the course of 6 years, over 15,000 workers, mostly single men, came from Mexico to work the fields and pick the crops to feed Oregon’s families.29 Immigration slowed after the program ended, but Mexican-American families continued to migrate from the southern states to Oregon. By the 1970s, sizable communities were appearing in Woodburn, Independence, and Ontario, areas now considered centers of the Latino community in Oregon.30

Immigration from Mexico to Oregon and the rest of the United States began to pick up in the early 1970’s as employers sought workers directly from Mexico, rather than drawing from Mexican-American migratory laborers already residing in the US.31 The passage of the Immigration Reform and Control Act and the accompanying Seasonal Agricultural Workers program in 1986 contributed to the growing population by allowing family members in Mexico to join their newly legalized relatives in the U.S. IRCA also helped change the face of the immigrant communities, as single men were reunited with their wives and children.

Migration from Mexico and the rest of Latin America increased dramatically during the 1990’s; in Oregon, the immigrant population from Latin America nearly tripled between 1990 and 2000.32 As the number of immigrants from Mexico and Central America increased, the migrants and their occupations diversified. While immigrants in the 1970s were largely young men working in the agricultural industry, women now make up 43.8% of immigrants from Latin America. Industries of employment have also expanded, with a significant number of immigrants working in manufacturing, food and hospitality services, construction, and maintenance.33

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Figure 1: Latino Immigrants by Decade of Entry and Region of Origin

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Latinos in OregonThe Growing Latino Community in Oregon

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Immigration from Latin America to Oregon peaked around the year 2000, and since then, the rate of immigration has gradually decreased. Yet the Latino population in the state has continued to grow. Between 2000 and 2010, the Latino population grew 63%, from 275,314 to 450,052. This growth accounted for 43% of the total population growth for the state of Oregon over the last decade. Latinos now make up 12% of the total population.34

The population increase is largely due to growth in the native born population, which accounted for 75.3% of the total growth in the Latino population since 2000.35 While this does reflect new births, most of it stems from migration to Oregon primarily from California and other southwest states. Nearly one in four Latinos living in Oregon were born in another state, and they make up 40% of the native born Latino population in Oregon.36

Counties that host important agricultural, nursery, processing, and ranching industries have traditionally had higher percentages of Latino and immigrant populations compared to the rest of the state. That trend continues today, with Latinos making up at least 20% of the population in Marion, Malheur, Hood River, and Umatilla County. In Malheur and Marrow County, Latinos make up over 31% percent of the population, more than double the percentage of Latinos statewide.

Yet the largest areas of growth in the Latino community over the last 10 years occurred in newer, non-traditional locations. Deschutes County in Central Oregon saw a 172% growth in the Latino population, largely due to the boom in the construction and maintenance industries in the first half of the decade. The population growth was due to recent in-migration of Latinos relocating to the area from within Oregon and the continental United States.37 Coastal counties also saw higher than average growth, as did previously less populous counties along the I-5 corridor (Linn, Benton, and Jackson Counties). Gillian County, which borders Morrow County, also saw dramatic growth in the Latino population.

The highest concentration of Latinos is still found in towns with historic immigrant populations. Oregon now has 5 cities with majority-Latino populations, all of which are located in traditional agriculture and ranching areas: Gervais (67.1%), Boardman (61.7%), Nyssa (60.5%), Woodburn (58.9%), and Cornelius (50.1%).38 Yet these cities experienced slower growth in the past decade compared to other cities in Oregon. Larger cities in the Portland metro area, such as Hillsboro, Gresham, and Beaverton, saw significant increases in the Latino population, as did Bend in Central Oregon and the Eastern Oregon cities of Hermiston and Umatilla.

Figure 2: Percent Latino by County, 2010

Source: Portland State University, Population Research Center, Oregon Census State Center, “Census 2010 Mapped: Percent Latino Population, 2010, Oregon Counties.”


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Figure 3: Growth of the Latino Population in Oregon Cities 2000-2010

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Figure 4: 2010 Latino population in Oregon Cities

Figure 5: Percent Change in the Latino Population 2000-2010, by County

Source: Portland State University Population Research Center, Oregon Census State Data Center, “2010 Census Mapped: Percent of Latino Population Change, Oregon Counties.”


The Latino population is growing at a faster rate due to two major factors: Latinos are generally younger, and thus more likely to be at the age to start a family, and they often have larger families and more children. The Latino population in Oregon is on average much younger than the general population, with a median of age of 23.7 versus 38.2. Furthermore, Oregon Latinos have an average family size of 4.01 versus 3.00 for the general population.39

The Latino population in Oregon is growing especially among children and young adults. Nearly one in four children under age 5 in Oregon are Latino, and 21% of students enrolled in Oregon k-12 public schools are Latino.40 While the large majority of these students are U.S. citizens, many of them are first generation Oregonians with immigrant parents. In Oregon, approximately 1 in 5 native-born children live with at least one foreign-born parent.41

The Oregon department of education reports that the Latino student population grew 113.1% between the 1999-2000 school year and the 2009-2010 school year. The number of Spanish speaking English learning students has also grown; currently, 9.1% of all k-12 students in Oregon are Spanish-speaking English Language Learners.42

The Shift in the Latino Population

National surveys and statistics from Mexico and the United States show that fewer immigrants are coming to the US from Mexico, and fewer are returning home. This means more are choosing to stay and raise the next generation of Mexican-Americans here in the U.S. If Oregon follows national trends, the number of immigrants coming from Mexico will likely continue to decrease in the coming years, while migration of Latinos from other states and new births will contribute to the continued overall growth of the Latino population. Since over 80% of Latinos in Oregon are Mexican or of Mexican descent, the migration flow from Mexico greatly influences Oregon’s Latino community and the general population. This shift in

migration will have significant implications for our communities here in Oregon and our future fiscal and social policies.

Fewer Immigrants are coming to the U.S. from Mexico and Central America. Pew Hispanic research shows that the number of Mexicans leaving Mexico for the United States had fallen from over 1 million in 2006 to just over 400,000 in 2010. This marks a 60% drop in the number of people electing to migrate from Mexico to the U.S. The decline in migration over the last 4 years resulted in a lower number of immigrants arriving from Mexico in the 2000’s (4.2 million) then in the 1990’s (4.7 million).43

Numbers from Mexico paint a similar picture. In 2011, only .09% of the Mexican population migrated out of the country, compared to .53% in 2006- an 83% drop in the migration rate.44 The slowing rate of in-migration from Mexico to the U.S. likely stems from declining job opportunities here in the U.S, increasing difficulty in crossing the border, slowing population growth in Mexico, and increasing job and educational opportunities in Mexico.45

Mexico’s population growth rate is expected to drop to U.S. levels in the next 40 years, greatly reducing job competition in Mexico and the need to seek employment abroad. Accompanying this gradual decrease in population is a rise in the number of children in school and the general education level of Mexico’s youth; 98% of children in Mexico are enrolled in primary education, and the average education attainment has increased to almost meet the U.S. level.46

Fewer immigrants are returning to Mexico. Not only are fewer immigrants coming to the United States, fewer of those here are returning to their countries of origin. A recent study by the RAND institute found that there was a significant decline (32%) in the number of male migrants returning to Mexico between 2007 and 2009, despite the recession.47 This may in part due to migrants’ reluctance to return before reaching their “target


earnings,” a process which was greatly delayed by the recession. Concerns about the growing drug violence in much of Mexico may also play a role in immigrants’ decisions to stay in the U.S.48

More immigrants are staying and making America their new home. Studies suggest that the bigger reason behind falling return numbers is that more immigrants are choosing to stay and raise their children, who are often U.S. citizens, in their adopted country. As of 2010, birth has now surpassed immigration as the largest driver of growth of the US Hispanic population. Between 2000 and 2010, the Hispanic population grew by 7.2 million due to births, and only 4.2 million due to immigration. Indeed, 58% of the population increase came from these births rather than the arrival of new immigrants.49

Latinos Today in Oregon

Although the Latino immigrant community has rapidly gained prominence within the state, Oregon is host to a diverse group of immigrants. Latin Americans are a plurality (48%) of all foreign-born residents of Oregon; a large number also come from Asia, and more recently, from post soviet Russia, Ukraine, and Romania. This diversity is due in part to Oregon’s large and growing refugee population; In 2006 Portland was the 12th largest receiver of refugees in the country.50

Oregon has traditionally experienced higher rates of immigration from Mexico compared to other Latin American countries. The 1970’s brought increased migration of indigenous groups within Mexico, as well as Guatemalan and Salvadoran immigrants. Today the majority of Latinos in Oregon are still Mexican or of Mexican descent; 82% self-identify as having Mexican heritage. Latinos with Puerto Rican, Guatemalan, Salvadoran, and Cuban heritage are the next largest groups, with a much smaller number of Latinos reporting heritage from South American countries such as Peru, Colombia, and Argentina.51

Mexican 82%

South American 2%

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4%

Puerto Rican 2%

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Latino 10%

Figure 6: Latino Heritage in Oregon

Source: 2010 US Census Bureau Population Survey

The Latino community is incredibly diverse, and encompasses a wide array of race, generations, and nativity. Of those who identify as Latino in Oregon, a majority of them (61%) were born in the United States. Foreign-born Latinos make up the remaining 39%: of those, 17% are naturalized citizens and 83% are not naturalized citizens.52 This final category includes immigrants who are here on temporary work visas, student visas, legal permanent residents, and those without documentation. No surveys track the status of foreign-born residents by state, so it is difficult to know the status breakdown of non-citizen immigrants in Oregon.

Europe 16%

Asia 28%

Africa 2%

Oceania 2%

Latin America 48%

North America 4%

Figure 7: Origin of Foreign-born Population in Oregon



Undocumented Immigrants in Oregon

Undocumented immigrants are a small, but significant population. The Pew Hispanic Center estimates that there are currently 160,000 undocumented immigrants living in Oregon, making up 4.3% of the total state population. Oregon is one of the dozen states with the highest share of undocumented immigrants in the state population, although the Oregon undocumented population remains far below that of California, Arizona, Nevada, or New Jersey. It is estimated that 60 to 75 percent of the undocumented population in Oregon is from Mexico.53

Undocumented Immigrants perform important roles in the Oregon economy. Undocumented immigrants make up 5.3% of the workforce in Oregon, and are indispensable workers in key industries in Oregon.54 Major industries such as agriculture, particularly labor intensive food and nursery crops, as well as construction, maintenance, and parts of the hospitality and service industries all benefit from the work and skills of undocumented immigrants. These workers compliment the jobs done by native workers and ensure the continued growth and success of some of Oregon’s flagship industries and commodities.

Losing experienced immigrant workers hurts everyone. Recent experience in other states has shown that laws punishing undocumented workers have severely impacted local business, such as growers, retailers and construction companies in Georgia and Alabama.55 A study done in Oregon suggests that if all undocumented immigrants left Oregon there would be serious consequences for businesses, workers, and state revenue. In the long run, local business owners could see their income reduced by as much as 7.4%. State employment numbers could be as much as 6.5% below what they would have been, with the total state economic output reduced by $14.7 billion.56

Policies and programs that celebrate and promote diversity aren’t just good for our communities; they are good for the economy. A study by the Council of the Americas found that cities which enacted anti-immigrant employment ordinances had worse business climates than those which enacted non-restrictive or “sanctuary” ordinances.57 In general, cities with employment restrictions (such as mandating E-verify) would have approximately .26 times fewer employees than in cities without such measures.

Policies and programs affecting undocumented and documented immigrants also affect the broader Latino population. Many Latinos live in “mixed status” families. This refers to families with members who are a mix of US citizens, legal

Native 61%

Naturalized Citizen 6%

Not a naturalized citizen 33%

Foreign Born 39%

Figure 8: Native and Foreign-Born Latinos in Oregon

Source: 2010 American Community Suvey 3-year Estimates


residents, temporary workers, and those without legal documentation. Nationally, there are 16.6 million people with at least one undocumented family member. Of those, there are 8.8 million Latinos living in families with undocumented parents and U.S. citizen children, and even more who have extended family members with differing statuses.58

Furthermore, in a 2011 national poll, 53% of Latinos reported knowing someone who was undocumented, and 25% personally know someone who faced detention or has been deported.59 Laws that target undocumented immigrants therefore impact the entire Latino and immigrant community, as well as the rest of our state.

Undocumented immigrants are Oregonians as well. The Pew Hispanic Center estimates that 63% of undocumented immigrants nationwide have been in the country for 10 years or more. Only 15% of undocumented immigrants have arrived within the past 5 years.60 This means that the majority of undocumented immigrants are long-time residents with deep familial, economic, and social connections to their communities. The same report suggests that nearly 50% of undocumented immigrants are parents of children under the age of 18, most of whom are U.S. born citizens. This new data further demonstrates that a large number of undocumented immigrants are making the U.S. their home, working and raising their families here rather than in their native countries.

Opening Doors to Oregon’s Diverse Communities

Latinos are driving the growing diversity in Oregon. This poses challenges and opportunities for state and local policy makers, businesses, schools, and communities throughout Oregon. Part of what will determine the continued success and integration of the Latino community in Oregon is a policy of open doors and expanding opportunities. Immigrants are much more likely to integrate into a community when there is a welcoming environment and policies geared to facilitate, rather than deter, their contributions to the community. The size, growth,

and economic contribution of Latinos will play an increasingly important role in the future of Oregon. The following sections look at how Latinos are already contributing as workers, entrepreneurs, and taxpayers.


Currently, there are over 200,000 Latinos working in Oregon, representing 10.5% of the workforce. Latinos have higher workforce participation, at 67.5% compared to 64.7% for the general population.61 This is in part because Latinos have a younger median age, and thus have a higher portion of people who are of working age. Latino workers in Oregon are younger on average, with a median age of 34.3 compared to 38.2 for the general population62

Latino men aged 25- 54 have the highest participation rate of any age or ethnic group, at 91.5% compared to 89.3% for the total population. Latina women have a much lower participation rate in the workforce, although it has increased in recent years. In 1990, Latina women had the lowest participation rate of all groups at 54.8%. In 2010 their annual participation rate rose to 59.5%, almost equal to the rate of White women but still lower than Asian and black women.63

Latino workers are represented in all major occupations and industries in Oregon. The highest percentage of Latino workers are employed in service occupations (27.8%), followed by natural resources, construction, and maintenance (20.8%), production, transportation, and material moving (17.9%), sales and office occupations (17.7%), and management, business, science and arts (15.7%). Latinos are more likely to work in the private sector than other workers; 8 in 10 Latinos work for a private employer.64

Latinos, both men and women, represent a significant percentage of workers in a number of occupations. Latinos make up 58.8% of the workforce in farming, fishing, and forestry occupations, 28.7% in building and grounds cleaning and maintenance, 23.5% in material moving, 20% in food preparation and serving, and 16.6% in construction and extraction.65

Latinos in the Workforce

Latinos work in key occupations and industries in Oregon

2

Management, business, science,

and arts occupations:

15%

Service occupations:

28%

Sales and office occupations:

18%

Natural resources,

construction, and maintenance occupations:

21%

Production, transportation, and

material moving occupations:

18%

Figure 9: Latino Workers by Major Occupation in Oregon



Latina women are concentrated in office and administrative support occupations (16%), service occupations such as food preparation and service (14.6%), building and grounds cleaning and maintenance (10.2%), education, legal, community service, arts, and media (10%), and production occupations (8.2%). Latina women make up over 50% of the female workforce in farming, forestry, and fishing occupations, and are more likely than the general population of women to work in production, building and grounds cleaning and maintenance, and food preparation and service occupations.

Latino men predominantly work in farming, fishing and forestry (15%), construction and extraction (12.9%), management, business, science, and arts occupations (12%), production occupations (11%), food preparation and serving (9.8%), building and grounds cleaning and maintenance (9.6%), and material moving (7.4%). Latino men are more likely than the general population of men to work in all of the above occupations with the exception of management related occupations.66

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00%

Management, business, and financial occupations

Computer, engineering, and science occupations

Education, legal, community service, arts, and media

Food preparation and serving related occupations

Building and grounds cleaning and maintenance occupations

Sales and related occupations

Office and administrative support occupations

Farming, fishing, and forestry occupations

Construction and extraction occupations

Production occupations

Transportation occupations

Material moving occupations


Figure 10: Latino Males and Total Male Workforce by Select Occupations in Oregon

Total Workforce Latinos

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Education, training, and library occupations

Management, business, and financial occupations

Education, legal, community service, arts, and media occupations

Healthcare practitioners and technical occupations

Healthcare support occupations

Food preparation and serving related occupations

Building and grounds cleaning and maintenance occupations

Personal care and service occupations

Sales and related occupations

Office and administrative support occupations

Production occupations


Source: American Community Survey 3-year Estimates

Figure 11: Latina Females and Total Female Workforce by Select Occupations in Oregon

Total Workforce Latinas


The yearly median wages of full time Latino workers in Oregon are still lower than that of white workers in Oregon. Latino male and female workers earn $30,884 and $17,965 respectively, compared to $51,395 and $38,548 for their white counterparts. Over the last 30 years, the wage gains of Latinos have trailed in comparison to White workers even as the employment of Latinos rose.67

Latino Immigrant Workers

There were over 124,000 immigrants from Latin America in the labor force in Oregon in 2010, representing 6.3% of the workforce. Latino immigrant workers are concentrated in the same occupations as the general Latino population, but with even higher levels of representation. Foreign-

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Figure 12: Labor Force Participation Rates by Race, 1973-2010

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and arts occupations

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material moving occupations


Figure 13: Latino Immigrant Workers and Latino Workers by Major Occupation

Latino Immigrant Workers Latino Workers


born Latinos share similar work characteristics with the general Latino population, and their employment patterns are closer to those of Latinos than to the general foreign-born population in Oregon.

Nearly two thirds of immigrant workers from Latin America are concentrated in service occupations (30.9%) and natural resources, construction, and maintenance occupations (28.7%), with a smaller number working in production, transportation and material moving (21.3%), sales and office occupations (10.2%), and management, business, science, and arts (9.4%).68 Further detailed information regarding specific occupations is not currently available for the immigrant population in Oregon through the American Community Survey.

Immigrants from Mexico make up the large majority (84.6%) of immigrants from Latin America living in Oregon, and as such strongly influence the data regarding Latin American immigrants. Yet within the Latino immigrant community, there is significant variation in employment and earnings among immigrants from different regions within Latin America. Immigrants from Central America make up the second largest group of immigrants from Latin America (8.5%), and are concentrated in similar occupations as Mexican immigrants.

Central American immigrants are more likely to work in sales and office occupations (16.2%) and production, transportation and maintenance occupations (25.1%) and less represented in natural resources, construction and maintenance occupations (19.2%). Immigrants from South America have dramatically higher levels of employment in management, business, science, and arts (39.7%) and sales and office occupations (23.8%) and much lower levels in production, transportation, and maintenance (10.1%) and natural resources, construction, and maintenance occupations (10.3%).69

Latino immigrant workers have lower yearly median wages than the general Latino population in Oregon. This is in part because immigrant workers are more likely than native workers to work part time, contract, or seasonal jobs. The yearly median earnings for full time Latino immigrant workers were $24,218 for male workers and $21, 153 for female workers. Within the Latino immigrant population, Mexican workers had some of the lowest yearly median earnings at $23,353 and $20,632 for men and women respectively, and immigrants from South America had some of the highest yearly median earnings at $44,193 and $29, 796.70

Management, professional, and

related occupations 8%

Service occupations 28%

Sales and office occupations

10%


17%

Construction, extraction,

maintenance, and repair occupations

15%



23%

Figure 14: Foreign born workers from Latin America by Major Occupation in Oregon



Undocumented Workers

Undocumented immigrants are indispensable workers in key Oregon industries The Pew Hispanic Center estimates that there are 110,000 undocumented immigrants making up 5.3% of the workforce in Oregon.71 While Oregon-specific data is unavailable, national studies show that undocumented immigrants are over-represented in occupations such as agriculture workers, maids and housekeeping workers, and ground maintenance workers, as well as in construction occupations such

as roofers, painters, maintenance workers, drywall installers, ceiling tile installers and tapers.72

Undocumented immigrants are employed in industries that add greatly to the state’s gross domestic product (GDP). Agriculture alone is a $3.65 billion dollar industry in Oregon, and agricultural goods are increasingly important export products. Immigrants are highly represented in crops requiring high levels of manual labor, such as berry crops and nursery/greenhouse work. Oregon is ranked fourth in the country for fruit

Agriculture, forestry, fishing and hunting,

and mining 18%

Construction 12%

Manufacturing 17%

Wholesale trade 4%

Retail trade 7%

Professional, scientific, and

management, and administrative and waste management

services 10%

Educational services, and health care and

social assistance 7%

Arts, entertainment, and recreation, and accommodation and

food services 16%

Other Industries 9%

Figure 15: Latin American foreign born workers by Industry


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Management, professional, and

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Figure 16: Native Workers and Latin American Immigrant Workers by Occupation in Oregon

Native Latin American Foreign Born


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support

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Source: Pew Hispanic Center, "A Portrait of Undocumented Immigrants in the United States," 2009

Figure 17: Share of Legal Immigrants, Undocumented Immigrants, and U.S. born workers in Major Occupations

Undocumented Immigrant Legal Immigrant U.S. born Share of Undocumented Immigrants in Total Civilian Workforce

0% 5% 10% 15% 20% 25% 30%

Brickmasons, blockmasons and stonemasons

Drywall installers, ceiling tile installers and tapers

Roofers

Agriculture workers

Maids and housekeeping cleaners

Cement masons, conrete finishers and terrazzo workers

Packaging and filling machine operators and tenders

Ground maintenance workers

Painters, construction and maintenance

Chefs and head cooks

Packers and packagers

Source: Pew Hispanic Center, "A Portrait of Undocumented Immigrants in the United States," 2009

Figure 18: Undocumented worker share of select occupations


and prepared fruit exports, and greenhouse/nursery commodities are the highest earning farm commodities in Oregon, making up 20% of total farm receipts.73 Other industries with high levels of immigrant employment such as construction ($5.78 billion), accommodation and food services ($4.18 billion), transportation and warehousing ($4.46 billion), administrative and waste management ($4.08 billion) are also major contributors to overall state GDP. 74

Immigrants Complement Native Workers

Immigrants do not take the jobs of native workers. Immigrants with comparable levels of education bring unique skill sets that allow them to compliment, rather than compete, with native workers. Immigrants are not perfect substitutes for native workers.75 Studies show that immigrant workers arrive with different verbal and written language skills from native workers. A majority (68.7%) of immigrants from Latin America living in Oregon report having limited English proficiency, which impacts their ability to hold positions that demand frequent and high levels of communication in English.76 As 60% of immigrants from Latin America arrive in Oregon without having completed a high school education, they often lack other skills required for some jobs. Immigrant workers, particularly those with a high school diploma or less, are therefore more likely to work in jobs that require less communication and more manual labor.77

Over time, as immigrants integrate and gain English language proficiency, they are more likely to join native workers and move into jobs requiring more intensive communication skills. A Pew Hispanic study found that immigrants from Latin America who had been in the country more then 26 years were 3 times more likely than immigrants who arrived in the last 2 years to report speaking English well.78 Immigrants who arrive at a younger age and those with higher education are also more likely to report higher levels of English proficiency.

Immigrants also bring unique cultural, linguistic, and practical knowledge that allows them to diversify and expand already existing industries and occupations. Immigrants are able to offer products and services that cater to the needs of a broader immigrant or ethnic community.

Immigration encourages the specialization of native workers. Immigrants foster the specialization of U.S. workers, who have shifted into occupations that require more “intensive” communication skills. Studies show that immigrant and native workers are often concentrated in different and complementary occupations within a given industry. For example, in the health industry immigrant workers are more likely to be doctors and nursing and home health aides and native workers are more likely to be registered nurses. In the construction industry, immigrants are more likely to be laborers, compared to native workers who more often hold managerial positions.79

Because jobs with higher communication requirements also come with higher compensation levels, U.S. workers are less likely to suffer negative wage impacts.80 For U.S workers in jobs with higher language demands and wages, turning to manual labor occupations may be unattractive. Their skills don’t fit the demands of physical labor, and what skills they develop at a manual labor job are unlikely to transfer to future jobs. They are therefore unlikely to occupy vacancies in jobs left by departing immigrants, in part explaining the labor shortages caused by strict immigrant enforcement legislation in states such as Georgia.81

Immigrants increase the wages of most U.S. workers. Studies that address the impacts of immigrants across educational and skill levels suggest that the average wages of 90% of U.S. born workers actually increase due to immigration.82 A study by the National Bureau for Economic Research shows that average wages of native workers rose by 1.8% between 1990 and 2004 due to immigration. While the real wages of lowest wage earners (high school drop-outs) fell in comparison to the wages of workers with further


education, only one eighth (.12) of that drop is due to immigration.83

Immigrants are most likely to impact the jobs and wages of other immigrant workers. In fact, the arrival of new immigrants is most likely to negatively affect the wages of previous immigrants. Previously arrived immigrants are more likely to share the same skills and education as their newly arrived counterparts, and therefore face more direct competition. One study suggests that foreign-born average wages fell by 19% between 1990 and 2004 due to immigration. The immigrant population grew rapidly during that time, thus stimulating greater job competition amongst immigrants.

The increasing wage gap between foreign-born and U.S. native workers over the last 30 years can also in part be explained by the heightened competition between waves of foreign-born workers in particular occupations and industries that are heavily reliant upon immigrant labor. 84

Barriers for Latino Workers

Latino workers are at higher risk for wage violations, wage theft, and job injuries than other American workers. Wage theft occurs when an employer fails to pay an employee for over-time or off-the-clock work, pays employees less than minimum wage, misclassifies an employee as an independent contractor, or violates other labor laws regarding pay. Wage theft does not only hurt workers, it hurts their local community and economy by reducing the salary available to workers to spend on necessary items, goods, and services.

According to a recent national survey, 32.8% of Latino workers experienced minimum wage violations compared to only 7.8% of white workers. Latina women have a higher rate of minimum wage violation at 40%. Immigrant Latino workers fared worse, with almost half of Latina female immigrant workers (47.4%) and 29.5% of Latino male immigrant workers reporting minimum

wage violations. Unauthorized immigrant workers were also particularly vulnerable, with 37.1% experiencing wage violations. Overtime violations and overtime wage theft is also a widespread problem; over three quarters (77.8%) of Latinos and over 80% of foreign-born workers have had overtime violations. 85

Latino workers in Oregon are disproportionately employed in industries with higher rates of reported wage theft. Construction and accommodation and food service workers together filed over 40% of all wage theft claims with the Oregon Bureau of Labor and Industries. Latino males are over-represented in construction (12.9%) and food prep and service (9.8%) compared to the total male workforce (8.9% and 4.7% respectively). Latina women are twice as likely to work in food prep and services (14.6%) compared to the total female workforce (7.6%)86

Although construction workers make up only 4% of the total Oregon workforce, claims filed by construction workers made up 18% of all claims filed to the Bureau of Labor and Industries between 2010 and 2011. The accommodation and food service industry had the highest number of total claims, with food service workers making up 90% of industry claimants. 87

Latinos also have the highest fatality rate on the job, at 3.7 per 100,000 workers compared to 3.4 for White workers and 3.0 for African American workers.88 Again, foreign-born workers are even more vulnerable; immigrant workers accounted for 63% of fatal injuries among Latinos in 2008.89

Strengthening laws against wage theft and ensuring stricter enforcement are important steps in protecting workers from abuse. Immigrant workers are particularly vulnerable due to their fear of reprisals for reporting abuse, including being fired, reported to ICE, or deported. Wage suppression hurts other workers through unfair wage competition, and hurts the state through lost tax revenue. It is in the best interest of all Oregon workers that the rights of immigrant workers are


protected, regardless of their immigration status.

Damage Done to Oregon if Immigrants Leave

Oregon depends on immigrant workers. According to a study by the Perryman Group, if all undocumented immigrants left the state, Oregon would lose nearly $3.4 billion dollars in total expenditures, even after accounting for proper market adjustments. The state would additionally lose 19,250 jobs.90 Industries with a larger immigrant workforce would be disproportionately affected. Undocumented immigrants are integral members of Oregon’s communities, and their departure would affect all aspects of Oregon’s economy.

Some states are learning the important role immigrants play in their economies. Alabama and Georgia were both forced to turn to prisoner and probation labor for work in the empty agriculture fields. Lacking the experience of the former immigrant workers, many quit after a few hours, and failed to return after their first day of work. A recent study by the Center for Business and Economic Analysis at the University of Alabama estimates that the Alabama law, if fully implemented, will result in the loss of at least 70,000 jobs and $2.3 billion in state GDP. 91

Other states and cities are working hard to attract immigrant workers, such as the city of Dayton, Ohio, which is encouraging immigrants to move there by making more social services available to immigrants, providing Spanish translation of government resources and promising a welcoming environment. California and Utah have contemplated creating their own state-run guest worker programs to allow undocumented immigrants to remain living and working in the state.

The economic, political, and community fallout from punitive measures passed by some states have proven the importance of immigrant workers to major industries across the United States.

Oregon is best served by continuing to provide the opportunity for immigrants to contribute to our economy and integrate into our communities.

Latino Workers and the Future of Oregon

Latinos are working in some of the fastest growing industries and occupations in Oregon. Latinos are employed in industries and occupations projected to have higher levels of employment growth over the next 8 years. The service sector is expected to add 52,893 jobs (a 19.8% increase), construction and extraction will add 14,579 (a 25% increase), and production will add 20,098 (a 17.1% increase).92

Nationally, Immigrant workers are over-represented in 7 of the 15 fastest growing occupations, including construction occupations such as iron and rebar workers, mason, tile, and marble setters, pipe layers and plumbers, and carpenters, as well as other occupations such as home health aides and personal care aides.93 Yet Latinos are under-represented in 3 of the top 5 growth occupations in Oregon: Sales, professional, and office and administrative support. Job training programs, English language instruction, and access to affordable post-secondary education are key to incorporating Latino workers into top performing occupations in the state. Latinos will make up a growing percentage of our national workforce in the future. Between 2010 and 2020 Latinos are expected to account for three quarters of the growth in the labor force. Latinos will grow from representing 14.8% to 18.6% of the total national labor force. While Latinos are projected to add 7.7 million workers in the upcoming decade, non-Latino White workers are projected to decrease by 1.6 million workers. This is largely due to the younger median age and higher growth rates for Latinos combined with the aging and retirement of white baby boomers.94


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Figure 19: Labor Force Leavers, 1998-2008 and Projected 2008-2018

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Latino workers are not only helping replace our aging workforce, they are also at the forefront of providing care for the growing elderly population. Nationally, 16% of homecare workers and health aides are Latino, and 24% are immigrants.95 Home health aides are projected by the Bureau of Labor Statistics to be one of the fastest growing occupations in the nation, with a 69.4% growth in jobs between 2010 and 2020.96 The number of Americans in need of long- term care is expected to rise from 13 million to 27 million by 2050.97 Latino workers will play a key role in replacing retiring workers and ensuring that the demand for employees in Oregon is met.

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In 2008 the Oregon Legislature passed SB 1080, a law requiring proof of citizenship or legal status to obtain an Oregon driver’s license. This law created unnecessary barriers for individuals to legally drive or purchase insurance and unnecessary costs and consequences for other drivers, insurance companies, homeowners, businesses and law enforcement.

The need for Driver’s License Restoration

Ensuring that all of Oregon’s drivers are licensed and insured is important both for public safety and for our economy. Additionally, many Oregon residents use their drivers’ licenses as a form of official I.D. Although the full effect of the law will not be apparent until all previously issued licenses expire, community members are already struggling.

A study sponsored by the Oregon Department of Transportation to study the effect of SB 1080 found that people reported difficulty opening and accessing a bank account, cashing checks, and making larger purchases. Many community members reported difficulties due to SB 1080. In the survey, two thirds of those who reported not having a license identified the new requirements as a barrier.98 Three quarters of respondents said they knew someone who drove without a license in Oregon.99 As a result, over 50% of respondents said they were now giving rides to friends and family members who did not have drivers licenses.100

Many families use their vehicles to take children to school, shop for food at the store, and drive to work. Without access to a driver’s license, families are forced to cut back on driving, ask friends and

relatives for rides, and reduce activities outside the home. Workers have trouble getting to work, and may lose jobs due to their inability to access the work site or drive a vehicle once on the job. Reduced economic activity only hurts immigrant families and Oregon’s economy.

“When one driver can’t come, if they are sick or whatever, it does throw off the carpool schedule….When one driver couldn’t get his license renewed that meant his whole car-full had to get a ride from someone else…..different crews do different jobs like new construction, maintenance, tree pruning. It’s a big impact on us if one driver can’t make it.” Landscaping Contractor 101

“It’s affecting the economy; they cannot go to the mall as much or to the grocery stores. If they do, they are limited in how much they can get because, of course, they have to walk”. Loan officer, finance company 102

Public Safety

Public safety for everyone increases when all drivers are tested, licensed, and insured. AAA statistics show that one of every five fatal crashes involves a driver who is definitely or possibly driving with an invalid license or no license. Unfortunately, The Oregon DMV reports that the number of Spanish speakers taking and passing the driver’s license test dropped 90% after the new law went into effect in 2008.103 Allowing all Oregon residents to be tested and prove their knowledge of Oregon laws will help ensure that all drivers know and obey the rules of the road.

Restoring Drivers’ Licenses for AllSafe Roads and a Strong Economy


Community members without drivers’ licenses who are witnesses or victims of a crime may fear reporting it to the police due to a lack of official I.D. and driver’s license. In the same DMV study, 64% of survey respondents reported fear of being pulled over by police due to lack of proper documentation. 59% of men and 62% of women reported knowing someone who had been pulled over and then arrested by police due to lack of driver’s license and official I.D. 104

SB 1080 erodes successful community policing efforts, which depend upon strong relationships between community members and local police, thereby reducing public safety. Currently, officers may be required to transport individuals without a valid form of I.D. to the local jail in order to determine their identity; this wastes time and department money. When all Oregon drivers have a valid drivers license law enforcement officers will be able to easily identify drivers and can devote their resources to more pressing public safety issues.

Our Uninsured Future

Immigrants, documented or undocumented, are integral to the success of our economy. The 2009 purchasing power of Latinos in Oregon totaled $7.0 billion, and unauthorized workers in Oregon contribute on average between $134 million and $187 million in taxes a year. A labor market that is less mobile and consumers that are less confident and able to purchase products and services make it even harder for Oregon to climb out of the economic recession.

Soon most of these workers drivers’ licenses will be expired, leaving roughly 80,000 people without recourse to consistent, legal, and insured transportation to work. Local business owners are already seeing decreased business due to the law, according to an interim report for the Oregon Department of Transportation:

“It used to be that almost every week someone would come to arrange a birthday dinner, or an anniversary, or some other event. Even twice a week. But now that doesn’t happen even once a month. Times are bad but worse because people are saving in case they lose a job. And if you stay home you will not have a problem with the police or anybody.” Restaurant Owner 105

The lack of a driver’s license and an official ID is also preventing some from accessing bank accounts, loans, and other important services:

“Without a driver’s license you are less likely to be able to rent apartments or homes in certain areas…..You’re taking people that have a lower socioeconomic standing and forcing them to, if they do need some kind of financial support, take out loans at twenty-thirty percent where if they had a driver’s license or some type of identification document…..they’d be able to access financial agencies that provided a more ethical situation for them.” Financial Services Auditor 106

Causa recommends removing the requirement for proof of legal presence for Oregonians seeking a driver’s license. Ensuring all Oregon residents equal access to drivers’ licenses and I.D.s will promote economic participation, protect public safety and law enforcement, and provide for the continued economic recovery of Oregon.


Latino Business owners are helping drive the economic recovery in Oregon. There has been dramatic growth in the number of Oregon Latino business owners during the last decade. The results of the 2007 Survey of Business Owners released in 2010 show a 78% increase in the number of Latino-owned businesses from 2002 to2007. There were 11,338 Latino-owned businesses in Oregon as of 2007, up from 6,360 in 2002.107

Oregon is among the top 10 states with the highest growthrate of Hispanic owned businesses. The Oregon growth rate was nearly double the national rate of growth for Latino-owned business, which was 43.6%. Only 6 states reported a more rapid growth rate in the number of Hispanic owned businesses; these states, such as North Carolina and Arkansas, also saw the greatest growth in the Hispanic population over the last decade. The growth of Latino owned businesses in Oregon is also outpacing growth in new businesses owned

by Whites and Asians, which grew by 14.7% and 39.8%, respectively. Black-owned businesses grew at a slightly higher rate, at 81.9%. The rate of growth for the number of Latino-owned businesses was over four times as much as total business growth in Oregon. As a result of this rapid growth, Latino businesses now make up 3.3% of all businesses in Oregon.108

Latino Entrepreneurs are energizing the rate of new business creation across the United States. The Kauffman Index of Entrepreneurial Activity measures the number of new businesses created each month. According to their calculations, the entrepreneurial activity of Latinos has significantly increased in recent years, and in 2010 reached .56%, the highest level in a decade and a half. For Latinos, 560 people out of 100,000 start a business each month, compared to 280 people out of 100,000 for the total native population. Additionally, Latinos have significantly increased

Latinos as EntrepreneursLatino Entrepreneurs Contribute to Business Growth in Oregon

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Figure 22: Percent Growth in Number of Business in Oregon by Race and Ethnicity

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their share of new entrepreneurs, jumping from around 10% in 1996 to 23.4% in 2010.109 Immigrants also play an important role in driving entrepreneurship in the U.S, with an entrepreneurial rate of more than twice that of the native born population. While data about immigrant-owned businesses is relatively scarce, a 2008 report from the Small Business Administration suggests that immigrant-owned firms in Oregon had an income of over $549 million and made up 7% of the total business income for the state in 2000.110

Latino Businesses Support Oregon’s Main Street

Latino small business owners are playing an important role in the growth of Main street businesses in Oregon. The majority of Latinos are owners of small businesses. Over 40% of Latino owned businesses employ between 1 and 4 employees. This reflects the general trend in Oregon businesses; 48% of all firms in Oregon have between 1 and 4 employees. Indeed, small businesses, defined as those with 500 employees are less, make up 97.7% of all employers in Oregon.111 As can be seen in Figure 24, the size distribution of Latino-owned businesses parallels that of non-Latino owned businesses, although Latinos are more likely to have businesses with no paid employees and less likely to own large companies with over 500 employees. While there are substantially more businesses with 4 employees

or less, 62% of sales from Latino owned businesses were from firms with 10-99 employees.

A large majority of Hispanic businesses are microenterprises, with self-employed owners and few or no paid employees. There are 9,414 businesses with no employees, and 1,924 with employees. In total, Latino Businesses employed 13,916 people in 2007 in Oregon.112

Small businesses are engines of economic growth, and create the majority of net new jobs. Small firms with less than 500 employees accounted for 64% of net job creation between 1993 and 2008. Nationally, the number of self-employed Hispanics more than doubled between 2000 and 2008. Small businesses were hit especially hard during the recession; 60% of all net job losses occurred in businesses with 500 employees or less. While the rate of net job creation by small business

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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Kauffman Index of Entrepreneurial Activity, 1996-2010

Figure 23: National Entrepreneurial Activity by Ethnicity 1996-2010

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Source: 2007 US Census Survey of Business Owners

Figure 24: Size of Hispanic and Non-hispanic Businesses in Oregon

Hispanic Firms

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has decreased in recent years, small businesses continue to play an important role in the economic recovery.

Receipts from Latino owned businesses are also growing. Latino-owned businesses had a record $1.6 billion in receipts in 2007, a 17.5% increase from 2002. In spite of this dramatic growth, the average yearly receipt size for Latino businesses was $152,715 compared to the national average of $1,113,281. Latino-owned firms with receipts of over $1 million or more made up only 1.9% of all Latino-owned firms, compared with 4.9% of non-Latino owned firms.113 The discrepancy in receipt size is in large part due to the size of Latino-owned business, which are on average smaller than businesses owned by non-Latino counterparts.

Latino-owned business growth is largely driven by the dramatic increase of the Latino population in Oregon. Many of these businesses provide services to the Latino and non-Latino customers, often meeting specific cultural and linguistic needs. This is evident in the number of firms conducting business in both Spanish and English. Nationwide, 56% of Latino-owned businesses report conducting business in Spanish with customers, compared to only 4.1% of non-Hispanic businesses. Yet these same Hispanic owned businesses are also catering to English speakers, as over 90% also report conducting business in English.114 Though many businesses start by providing services or selling goods within the Latino and immigrant communities, they are able to appeal to a broader audience of consumers.

While Latinos own businesses in a diversity of industries, there is a higher concentration of businesses in construction (12%), manufacturing (12%), and health care and social assistance (12%). These same industries are also among the top employment industries for Latinos. Other major industries for Latino-owned businesses are administrative, support, waste management and remediation services (11%), retail trade (9%), and professional, scientific, and technical services (9%).115

Latino-owned businesses experienced growth in all major industries except education (0%), and manufacturing (-1.8%). The industries with the most dramatic growth levels were the construction industry (152.7%), the arts, entertainment, and recreation (140.5%), accommodation and food services (110%), and administrative, support, and remediation (107%).116 Comparatively, Non-Latino owned firms saw the highest amount of growth in education services (43.1%), arts, entertainment, and recreation (33.4%), transportation and warehousing (28.4%) and information (28%), while seeing zero percent growth in retail trade. 117

Barriers Facing Latino and Immigrant owned Businesses

While the growth in Latino-owned businesses is positive, Latino business owners and firms still face barriers to attaining equity with non-Latino owned businesses. Latino entrepreneurs are much more likely than White entrepreneurs to use personal savings to fund their business. A study done about Mexican-American Entrepreneurship suggests that a third of the gap in business formation rates between native and Latino immigrant entrepreneurs is due to differences in wealth.118 Latino immigrant entrepreneurs have less personal wealth and savings to draw on or use as collateral when starting their business compared to native entrepreneurs. They are also much more likely to use informal financing mechanisms, such as taking as loans from family and friends rather than from banks.119 The reduced use of and access to financial capital may be due partly to continued discrimination in loan approvals to Latinos.119 Poor or limited credit history and a lack of knowledge and access to technological innovation in the workplace also impact business formation and retention.

Differences in education levels and English language abilities are also strong factors influencing the lower income levels in Mexican-American owned businesses. In fact, the same report found that for Mexican immigrant entrepreneurs, “low levels of human capital and limited access to financial capital… explain


All Other Industries 5%

Construction 12%

Manufacturing 12%

Retail Trade 9%

Transportation and Warehousing

4% Real Estate and Rental and

Leasing 5%

Professional, Scientific, and Technical Services

9%

Administrative and Support and Waste Mang and

Remediation Srvs 11%

Health Care and Social Assistance

12%

Arts, Entertainment, and Recreation

4%

Accommodation and Food Services

4%

Other services (except public administration)

13%

Figure 25: Hispanic Owned Businesses by Industry

-20% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180%

Other services (except public administration)

Agriculture, forestry, fishing and hunting

Construction

Manufacturing

Retail trade

Transportation & warehousing

Information

Finance & Insurance

Real estate, Rental & Leasing

Professional, Scientific, & Technical services

Administrative, Support, & Remediation

Educational services

Health care & Social assistance

Arts, Entertainment, & Recreation

Accommodation & Food Services

Total for all sectors


Figure 26: Growth in Hispanic and Non-Hispanic Owned Businesses by Industry in Oregon

Non-Hispanic

Hispanic


the entire gap in business formation rates.” 121 Linguistic and cultural differences make it more difficult to access business counseling services and resources.122 Although it is difficult to measure the effect of legalization on entrepreneurial activity, a recent study suggests that legalization does positively impact the rate of businesses ownership among Mexican-Americans.123 These barriers are being addressed though non-profit and state and federal programs that focus on providing business development counseling, microenterprise programs, and loans in minority and immigrant communities. Access to alternative loan and funding sources is particularly important in light of the recession, which has resulted in increased loan requirements and limited bank lending.

Latino entrepreneurship is key to Oregon’s recovery and growth in the upcoming years and the continued vitality of Main Street businesses in communities around the state.Promoting business development in the Latino community will not only raise business formation rates. It will also provide some help in closing the income gap between Hispanic workers and their non-Hispanic counterparts. Self-employed Hispanic men eventually reach higher mean and median earnings compared to their wage and salary-earning counterparts, despite starting their businesses with even lower earnings levels. 124


Naturalization, the process by which foreign-born residents become American citizens, has long been considered an important part of immigrant integration. In order to become citizens, immigrants to the United States must first become legal residents and then wait at least 5 years before becoming eligible to begin the process of naturalization.

Here in Oregon, the Department of Homeland Security estimates there are 80,000 immigrants who are eligible to become citizens.125 Yet only 4,910 legal residents in Oregon became citizens in 2010.126 The Pew Hispanic Center estimated in 2005 that 58% of immigrants eligible were naturalized citizens, which was up dramatically from 32% in 1995.127 While naturalization is a goal for many immigrants, there are multiple barriers for achieving naturalization, including lack of English language skills, cost, and inability to gain initial legal permanent residency.

Immigrants from Latin America are less likely than other immigrants to gain their citizenship; this is true in Oregon as well as in other states across the country. According to the 2008-2010 American Community Survey estimates, 17.5% of immigrants from Latin America are naturalized citizens. This means there are approximately 30,885 naturalized citizens from Latin America living in Oregon.128 Nationally, in 2007 Mexicans were 35% of those eligible to naturalize, but they constituted only 13% of naturalized citizens. Hispanics make up 27% of naturalized citizens, but more than half (54%) of the eligible population and 42% of those who will soon be eligible.129

Over 80% of Mexican Legal Permanent Residents (LPRs) in the United States were eligible to naturalize in 2008. If all the Mexican LPRs who were eligible to naturalize did so, it would double the number of naturalized citizens from Mexico living in the U.S. Over 90% of LPRs from Mexico came here as family-based migrants.

Research shows that the higher the education level, English proficiency, and income, the more likely a person will be to naturalize.130 LPRs from Mexico have lower levels of education; 60% of those eligible for citizenship have not completed high school. Mexican LPRs are also less likely to be English proficient; 72% percent report limited English proficiency compared to 55% for all eligible immigrants.131 In a survey of Latinos who participated in a citizenship campaign, 67% of those who failed the test because of an unsuccessful exam or interview said it was due to low English language proficiency. 132 Income and poverty level also make a difference, for although low income immigrants make up a majority of the population of people eligible for citizenship, low income immigrants are a minority of those who have become naturalized.

The share of naturalized citizens coming from Mexico and other countries in Latin America has grown in the last few years.133 As can be seen in Figure 1, there was a large jump in the rate of those naturalized in 2008. This jump was likely due to citizenship drives related to the election year, and an increase in applicants in 2007 because of an impending fee increase.134 In addition, the share of Latin American LPRs who become citizens has dramatically increased over the last decade. The

Naturalization Improving Civic Engagement and Economic Contributions


Pew Hispanic Center reports that the number of naturalized citizens from Mexico rose by 144% from 1995 to 2005.135 Furthermore, in 1995 only 20% of eligible Mexican LPR’s were naturalized; in 2005 that number jumped to 35%.

The rate of naturalization cannot be solely explained by national origin. There is a wide variety of naturalization rates of Mexican LPRs from state to state, and even county to county. While Mexican LPRs in New Mexico had a citizenship rate of 16.5% in 2004, California and Illinois had rates of 27.9% and 31.3%, respectively. Even within California, Los Angeles had double the citizenship rate of Central Valley communities. This shows that factors such as public policies and services provided by local and state governments can strongly affect naturalization rates.136

Civic Engagement

As shown in the naturalization jump of 2008, expanded opportunities for civic engagement and political participation can be a powerful incentive for citizenship. According to a survey by National Council of La Raza of recently naturalized Latinos, 26% of respondents said they became citizens so the could vote, and 22% said they did so in order to gain “legal, political, and civil rights.”137 While naturalized Latinos have lower rates of voter registration than native-born citizens, they have slightly higher voter turnout rates on Election Day. 138 Naturalized immigrants are enthusiastic about participating in our democratic process.

Increasing naturalization rates will serve to open up this opportunity for millions of legal permanent residents who have made America their home.

Economic Opportunity

Naturalization has also been shown to increase the income and workplace opportunities of immigrants to the U.S. The Pew Hispanic Center found that naturalized citizens had lower rates of poverty than LPRs who are eligible, or soon to be eligible for citizenship. 14% of naturalized citizens are below the poverty line, whereas 24% of those eligible to naturalize and 30% of those soon to be eligible are below the poverty line.139 In Oregon, naturalized men and women have an annual median income of $45,134 and $35,015, respectively, while non-naturalized immigrant men and women have a lower median income of $26,512 and $22,046.140 The difference between median yearly incomes of naturalized and native citizens is small enough to be statistically insignificant, demonstrating the role naturalization plays in closing income gaps and promoting economic advancement and opportunity.

Naturalization is just one part of the process of integration. Advancement in the workplace and home ownership are often considered indicators of integration. Nationally, 58% of Latino immigrants who arrived in the last 18 years own a home, up from just 9.3% in 1990.141 Just as the rate of naturalization increases with the length of time an immigrant has spent in the U.S., so does the rate of homeownership. Gaining citizenship status often

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2002 2003 2004 2005 2006 2007 2008 2009 2010

Source: Department of Homeland Security, "Persons Naturalized by State and Territory of Residence and Region and Country of Birth: FIscal years 2002-2010."

Figure 1: Mexican and Latin American Share of Naturalized Citizens in Oregon

2002-2010

Mexican

Latin American

0

10000

20000

30000

40000

50000

Non-Naturalized Naturalized Native

Ann

aul

Med

ian

Inco

me

Source: 2010 American COmmunity Survey 3-year Estimates

Figure 2: Median Income of Non-Naturalized Foreign Born,

Naturalized Foreign Born, and Native born Men and Women in Oregon

Men

Women


eases the process of buying a home, finding a job, and going back to school, all of which can improve the economic and civic contributions of immigrants to our communities.

New Innovations in Promoting Naturalization

Citizenship campaigns such as “ya es hora !CUIDADANIA!” have proven that citizenship outreach and education can increase naturalization rates among Latino immigrants. Particularly at a time when state and federal program budgets are being slashed, innovative campaigns that incorporate naturalization into workplace services, union outreach to membership, and partnerships between public and private organizations are key to increasing naturalization rates. Addressing the high cost of citizenship is another crucial step in increasing the number of naturalized immigrants in Oregon. While there has been a considerable gain in naturalization over the last 10 years, there is still progress to be made.

Finally, studies show that that immigrants are more likely to naturalize and integrate when they live in an environment that is welcoming and appreciative of immigrants.142 Ensuring that Oregon has state and local policies that welcome immigrants and facilitate their integration and incorporation into our communities will allow our state and our immigrant communities to prosper.


Whether it is through their growing buying power, increasing participation in Oregon’s real estate market, or as taxpayers, Latinos are supporting the state economy in important ways.

Latinos are a Growing Consumer Force

Latinos are part of the growing multicultural economy in Oregon, as businesses work to provide culturally specific and relevant services to consumers. In Oregon, Latinos had a purchasing power of $7 billion in 2009, a 660.9% increase from 1990.143 In the Salem Metro area alone, Latinos have a purchasing power of $955 million, accounting for approximately 11% of the total purchasing power for the area.144 Nationally, Latino buying power is expected to grow by 48.1% by 2016, compared to 27.5% for the nation as a whole.145

National companies and local businesses are recognizing Latinos as a growing consumer market. By 2050, the Latino population is expected to triple in size and make up almost 30% of the U.S. population. The immigrant population and their U.S. born descendants are projected to account for 82% of the total population increase by 2050.146

Fueling Demand, Changing Supply

Latino customers have fueled the growth of Latino-owned small businesses providing culturally specific food and clothing products, and linguistically and culturally relevant services in the real estate, healthcare, and banking industries. In towns with a rapidly growing Latino population, such as Salem, Woodburn, Medford, and Springfield, Latino-owned small businesses catering

to the growing Latino community are revitalizing downtowns and business centers.147 Many non-Hispanic owned businesses are developing products and services geared towards the specific needs of their Latino customers.

The growth of the Latino market is helping fuel growth in companies across the country. Over the past decade, a growing number of companies have introduced advertising campaigns and products specifically targeting the Latino community. The Association of Hispanic Advertising Agencies found that companies that devoted significant funds to Hispanic media and advertising had higher revenue growth rates.148 There is also a growing number of Latino-run advertising and marketing businesses to help companies effectively target and reach the Latino market. Indeed, the advertising agency industry is expected to be among the top 5 industries with the fastest growth in the Hispanic market share by 2016.149 Latino consumers in Oregon are able to promote business growth and increase the number of successful Latino entrepreneurs.

Latinos as Home-buyers: Supporting the Housing Market

The homeownership rate among Latinos is rising. Although Latinos have a lower rate of homeownership than the general population, 40.2% compared to 62%, there has been significant growth in their homeownership rate over the last 10 years. The homeownership rate among Latinos rose 3.2 percentage points from 2000 to 2010, while White homeownership rates fell 1.7 percentage points during the same period. In Washington and

Latino Contributions to the State Economy

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Multnomah Counties, Latino homeownership grew at an even greater pace, both around 6%.150

Latinos represent a growing number of homeowners in Oregon. The number of Latinos owning homes in Oregon grew 87.7% between 2000 and 2010, while the number of White homeowners grew 6.5%.151 This dramatic growth in the number of Latino homeowners reflects both the substantial growth in the Oregon Latino population over the last decade, and the rising of number of immigrant homeowners in the state.

While 2010 U.S.Census data is not available for immigrant populations, the 2010 American Community Survey shows that 38.7% of immigrants from Latin America report being homeowners. This percentage closely parallels the homeownership rate of Latinos. Immigrants from

Latin America have a lower rate of homeownership than that of the total foreign-born population in Oregon, which has an ownership rate of 53.1%.152 Immigrants are more likely to own a home the longer they are in the U.S; 67.4% of immigrants that arrived before 1990 own a home, compared to 24.9% of immigrants who arrived after 2000.153

As more Latino immigrants transition from being recent arrivals to settled residents, their home ownership rates increase. The majority of Latino immigrants in Oregon have been in the US for over 10 years; their economic integration has also helped drive up the homeownership rate among Latino in Oregon.

87.20%

187.40%

74.80%

27.70%

83.20% 101.00%

18.20% 18.20% 3.10%

13.70% 16.70% 35.20%

0.00% 20.00% 40.00% 60.00% 80.00%

100.00% 120.00% 140.00% 160.00% 180.00% 200.00%

Portland-Vancouver-Beaverton Metro Area

Medford Metro Area Hermiston-Pendleton Micro Area

Woodburn Salem Metro Area Bend Metro Area


Figure 27: Growth of Latino-owned Businesses and All Businesses in Oregon Cities 2002-2007

Latino Businesses All Businesses

0% 20% 40% 60% 80%

Hispanic

White

Black

Asian

Total Population


Figure 28: Oregon Home Ownership Rates 2000 and 2010

2010

2000


Latinos are expected to drive up homeownership levels all across the U.S., and are likely to represent 40% of first-time homebuyers between 2002-2012. Despite strong growth in Latino homeownership, Latinos in Oregon still have a lower homeownership rate than Latinos nationwide; in 2010, 47.3% of Latinos lived in owner occupied housing.154

Latinos are a growing demographic of potential homeowners, and see homeownership as an important part of achieving the American Dream. In a survey by Fannie Mae, Latinos were more likely to view buying a home as a way to be a better citizen; 45% of Latinos saw it as a way to become a better citizen compared to 29% of all Americans. Latinos were also much more likely to see homeownership as good financial opportunity and as a way to build up wealth than the general population.155

Despite tremendous growth in the number of Latino homeowners, there still remain many barriers for potential Latino homeowners. Latino homebuyers are more likely to be of low or middle income. Like many other lower income buyers, potential Latino buyers often have difficulty providing an official credit history, or may have a history of bad credit. Documenting job history and income can be difficult, especially for immigrants.156

Finally, Latinos, especially immigrants, may not have the financial literary and homebuyer education necessary to make informed choices when it comes time to buy a home. This often

results in higher instances of predatory lending practices and hidden costs. In 2005 and 2006, 40% of subprime mortgages in the US were made to Latinos.157 Discrimination also continues to play a role in the housing market; Fannie Mae and Freddie Mac found that one third to one half of Latino homebuyers who received subprime loans actually qualified for prime loans.158

Increasing access to homebuyer education and loans for Latinos will help Oregon’s housing market recover and will promote the integration and advancement of immigrants making their home in Oregon.

Latinos Support the state as Taxpayers

Latinos are important contributors to our state’s revenue through taxes. Although information is not available regarding taxes paid by Latinos in Oregon, studies done across the U.S. demonstrate the important role Latino taxpayers pay. A study by the Institute for Latino Studies in Chicago shows that Latino taxpayers are net contributors to the Chicago Metro Area, contributing $1.2 billion dollars more in local tax revenue than is spent on services.159 In Michigan, a report by the Julian Samora Research Institute found that Latino households contribute $1.82 to state revenue for each dollar of services consumed.160 Both these studies show that Latino taxpayers in every state add to local and state government revenues and supporting the provision of key public services such as education, transportation, social services, and public safety.

59.70%

39.80%

19.90%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

Before 1990 1990 to 1999 2000 or later

Source Pew Hispanic Center, "Statistical Portrait of Hispanics in the United States. Table 40-Homeownership among foreign-born hispanic heads of households, by

date of arrival: 2010"

Figure 29: Homeownership rates among Latino immigrants by date of arrival


Immigrants in Oregon also contribute significantly to state GDP and funds through income and taxes. The Oregon Center for Public Policy estimates that undocumented immigrants in Oregon earned between $2.3 and $4.5 billion in 2011 and contributed $154 to $309 million in state and federal taxes. Oregon employers paid an additional $121 to $243 million in state and federal taxes on behalf of undocumented employees.161

Undocumented immigrants in Oregon contributed between $68 and $136 million in state and local income, property, and excise taxes. These are tax dollars that stay in our state and help provide funding for education, public safety, and services in our communities.

Immigrants contribute to Social Security and Medicare. The Oregon Center for Public Policy estimates that undocumented immigrants in Oregon paid $70 to $140 million in social security taxes and $16 to $33 million in Medicare taxes. Undocumented immigrants are paying taxes for services that they are not eligible to receive. Their tax dollars thus help bolster the federal social security and Medicare system for other Americans.

Many studies have found that on average, immigrants pay more in taxes than they use in public services. The National Research Council and the National Academy of Sciences estimate that an immigrant pays and average of $1,800 more in taxes than he or she receives in benefits.162


Allocation of State Funding for Naturalization Efforts

Naturalization is an important step in fully integrating immigrants into Oregon’s economic and civic life. Promoting and supporting immigrant naturalization benefits all Oregon residents. Naturalized immigrants often have improved job opportunities, increased wages, and higher home ownership rates, as well as the ability to vote and fully participate in civic matters. There are currently over 80,000 legal permanent residents in Oregon who are eligible to be naturalized, but have not yet done so.

We encourage the state of Oregon to allocate state funding and attention to support local naturalization efforts. Becoming a naturalized citizen is a multi-step process that requires support and assistance along the way. Yet local non-profits lack the capacity to assist all of Oregon’s legal permanent residents who are ready to become citizens. Many applicants need assistance filling out the initial application form. Others need English and civic classes to help them prepare for the citizenship test. The $680 application fee is also a barrier for legal permanent residents. States such as Illinois and Washington have built successful partnerships between the state and local non-profits to sponsor citizenship clinics and classes. In Maryland, the Governor created the Maryland Council for New Americans to provide policy recommendations to improve immigrant integration initiatives in the state. Other private groups and non-profits are beginning to provide micro-loans to help applicants pay the initial application fee.

In this time of tight budgets and resources, it is difficult to suggest adding new expenditures. Yet the money invested in naturalization programs across the country demonstrates that in the long run, investing in naturalization pays off. Quite simply, counties and states that invest more in naturalization outreach efforts have higher rates of naturalization.

All of these efforts recognize the important contributions made by immigrants and the incredible potential for future contributions by naturalized citizens. We hope the state of Oregon will consider investing in future American citizens and the future of Oregon by supporting local citizenship initiatives.

Driver’s License Restoration

The time has come to end the needless hardship facing thousands of Oregonians and restore access to drivers’ licenses for all Oregon residents, regardless of their legal status. Oregon senators and representatives passed SB 1080 in 2008 to be in compliance with the federal REAL ID Act of 2005, which sought to create federal standards for state identification documents. Yet this law has failed to make Oregon safer; instead, it has left residents without drivers’ licenses, I.D.s, and auto insurance, while weakening road safety and community policing. Oregon legislators have the opportunity to fix this mistake, and various models to follow. For example, instead of shutting out those who are unable to provide a birth certificate or proof of legal residency, some states provide a dual driver’s license program. Applicants can elect whether to apply for the state I.D. or the federally recognized

Drivers of ProsperityPolicy Recommendations

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REAL I.D. Together, Oregon lawmakers and the public can decide what solution is best for Oregon. We have learned that SB 1080 has only created more problems, not solutions, for state residents and agencies. We encourage legislators to pass a bill in 2013 restoring access to drivers’ licenses to all residents in Oregon.

State Advocacy for Federal Immigration Reform

Many of the difficulties facing immigrants and Oregon communities are caused by our current failed federal immigration system. Immigrants who have been living in the U.S. for decades are stuck in limbo, lost in immigration policies that leave them unable to gain legal permanent residency or citizenship. Families are torn apart as mothers, fathers, aunts and uncles, and children are deported, and relatives remain separated for years on opposite sides of the border. Workers and employers alike face inflexible guest and temporary worker programs.

All of this hurts Oregon’s families and Oregon’s economy. We urge all publically elected officials in Oregon, especially our congressmen and senators, to continue pressuring the federal government to pass real immigration reform. While immigration reform has come to mean many things, there are a few key components that are crucial to the success of immigrants in Oregon. First, a path to legalization for immigrants who are currently here without documentation is critical to ending the isolation of immigrants and promoting immigrant integration in our communities. Passing the AgJOBS farmworker immigration bill (Agricultural Job Opportunities, Benefits, and Security Act) is another important step towards immigrant justice and economic opportunity. This bill would allow undocumented agricultural workers to apply for temporary, and eventually permanent, legal immigration status, as well as revise the current H-2A temporary foreign agricultural worker program. The AgJOBS bill will help Oregon farmers and farmworkers by ensuring a stable workforce, fair pay, and equal treatment for all agricultural workers. Finally, passing the DREAM Act will allow hard-working young people to remain

in this country by providing a path to citizenship for those who attend college or join the military. All of these bills, whether passed separately or together, will allow immigrants to come out of the shadows and fully participate in the economic and civic life of our Oregon communities. Federal immigration reform will help make healthier communities and economies by ensuring that all immigrants have the opportunity to strive for citizenship and the American dream.

Promote Business Creation and Entrepreneurship Among Immigrants

While there is incredible potential for further growth in the Latino business community, immigrant business owners face a unique set of barriers. They are often unfamiliar with U.S. laws and regulations, and lack access to traditional financial institutions. Some may have limited English skills that prevent them from accessing information or expanding into new, English speaking markets. All of this can prevent immigrants from starting a business or expanding a successful one.

Nationally, over fifty percent of Hispanic business owners are immigrants. Although state-level data is not available, it is likely that sizeable portions of Latino business owners in Oregon are immigrants. In Oregon there are currently private and public programs providing important support to Spanish-speaking and minority business owners, yet this work could be expanded. We recommend establishing a state-funded immigrant business owner outreach program that provides language-specific trainings regarding U.S. laws and regulations, business financing, technical assistance, and classes in English for entrepreneurs. Providing assistance and training to potential and current Latino immigrant business owners will help stimulate local economies and support the growing Latino community.


Drivers of Prosperity

Immigrants from Latin America and their descendants have long been a part of Oregon’s history. Whether as early vaqueros in eastern Oregon, braceros working the fields during World War II, or shop owners in rural Oregon, Latinos have helped shape the development of Oregon. During these times, Latino immigrants were sometimes welcomed and sometimes feared by residents of Oregon. But looking back, we can recognize and celebrate that the history and lives and Latinos are interwoven in the history of Oregon

The same can be said for the present and future of our state. Today, Latinos are drivers of growth and prosperity in communities across Oregon. This report shows that as workers, entrepreneurs, taxpayers, and community members, Latinos are making important contributions to the economy and state of Oregon. Despite easy claims that immigrants and their descendants drain Oregon resources or hurt American workers, the data and research demonstrate that Oregon is instead supported and improved by the presence of native and foreign-born Latinos. Rather than being a burden during the recession, Latinos are instead key participants in building Oregon’s recovery.

Yet Latinos still face many barriers that require legislative attention. Latinos are more likely to live in poverty than their White counterparts, and have a lower median wage than other workers. While their homeownership levels have grown dramatically, they still lag behind Oregon’s total average. Many Latinos live in mixed families, with relatives who are unable to gain legal immigration status and work authorization. We hope that this report contributes to productive discussions in our capitol and around the state as we work collectively for a better future for Latinos, immigrants, and all Oregonians.


Endnotes1 Causa analysis of 2010, and 2000 American Community Survey data, 1990 U.S. Census Bureau Population Survey Summary File 32 2000 and 2010 U.S. Census Bureau Population Survey3 2000 and 2009 American Community Survey42010 U.S. Census Bureau Population Census and Oregon Department of Education Report “October 1 Enrollment by Ethnicity: 2011-2012 School year.” Accessed on March 28 2012. http://www.ode.state.or.us/sfda/reports/r0067Select2.asp 52010 American Community Survey 3 year estimates6 2010 American Community Survey 3 year estimates7 2010 American Community Survey 3 year estimates8 2010 American Community Survey 3 year estimates9 2010 U.S. Census Bureau Population Survey10 U.S. Bureau of Labor Statistics. “Labor Force Characteristics by Race and Ethnicity, 2010.” Washington, D.C, U.S. Bureau of Labor Statistics, 2011. http://www.bls.gov/cps/cpsrace2010.pdf11 Ottaviano, Gianmarco and Giovanni Peri. “Rethinking the Effects of Immigration on Wages: New Data and Analysis from 1990- 2004” IPC IN FOCUS, Immigration Policy Center, 2006.122005-2009 American Community Survey13 Passel, Jeffrey S. and D’Vera Cohn. “A portrait of undocumented immigrants in the United States.” Pew Hispanic Center, April 23, 2009. http://www.pewhispanic.org/files/reports/107.pdf14 “An Analysis of the Economic Impact of Undocumented Workers on Business Activity in the US with Estimated Effects by State and by Industry.” The Perryman Group. April 2008. http://www.americansforimmigrationreform.com/files/Impact_of_the_Undocumented_Workforce.pdf 15 Marczak, Jason, Jeronimo Cortina, George Hawley, et al. “The Economic Impact of Local Immigrant Ordinances.” American Society/Council of the Americas. 201116 2007 Economic Census, Survey of Business Owners17 2007 Economic Census, Survey of Business Owners18 2007 Economic Census, Survey of Business Owners19 Fairlie, Robert W. “Estimating the Contribution of Immigrant Business Owners to the U.S. Economy.” Small Business Administration, Office of Advocacy. 2008.20 2007 Economic Census, Survey of Business Owners21 2002 and 2007 Economic Census, Survey of Business Owners22 Humphreys, Jeffrey M. “The multicultural economy 2009.” The Selig Center. 200923 Doussard, Robin. “Salem’s Hispanic Economy Grows.” The Statesman Journal. November 23, 2011. http://www.oregonbusiness.com/robin/6275-salems-hispanic-economy-grows 24 “IBISWorld Identifies Top 10 Industries Set to Benefit from the Growing Hispanic Population.” Business Wire. August 17, 2011. http://www.businesswire.com/news/home/20110817006246/en/IBISWorld-Identifies-Top-10-Industries-Set-Benefit 25 2000 and 2010 US Census Population Survey26 Becerra, Alejandro. “The Potential of Hispanic Ownership: Challenges and Opportunities.” National Association of Hispanic Real Estate Professionals. September 2007. http://www.hnma.com/hnma_news/becerra_report_revised_sept_25.pdf 27 2010 American Community Survey 3 year estimates28 “Undocumented Immigrants are Taxpayers, too.” Oregon Center for Public Policy. January 25, 2012. http://www.ocpp.org/2012/01/25/iss20120120undocumented-workers-are-taxpayers-too/ 29 Gamboa, Erasmo. “Mexican Labor and World War II: Braceros in the Pacific Northwest, 1942–1947.” Austin: University of Texas Press, 1990.30 Stephen, Lynn, Marcela Mendoza, and Mauricio Magana. “Latin

American Immigration in Rural Oregon.” In Understanding the Immigrant Experience in Oregon, edited by Robert Bussel, Eugene: University of Oregon, 200831 Ibid. 32 US Census Bureau, 1990 and 2000 Population Census33 US Census Bureau, 2010 American Community Survey 3 year estimate34 US Census Bureau, 2000 and 2010 Population Census35 2000 US Census Summary File 3, and 2010 American Community Survey 1-year estimate.36 U.S. Census Bureau, American Community Survey 2010 3 year estimates37 Hannah-Jones, Nikole. “Oregon’s 2010 Census shows striking Latino and Asian Gains.” The Oregonian, 23 Feb 2011. http://www.oregonlive.com/pacific-northwest-news/index.ssf/2011/02/2010_census.html38 2010 U.S. Census Bureau Population Census39 2010 U.S. Census Bureau Population Census 40 2010 U.S. Census Bureau Population Census and Oregon Department of Education Report “October 1 Enrollment by Ethnicity: 2011-2012 School year.” Accessed on March 28 2012. http://www.ode.state.or.us/sfda/reports/r0067Select2.asp 41 2010 American Community Survey 3 year estimates42 “Statewide Report: 2009-2010.” Oregon Department of Education. November 2010. http://www.ode.state.or.us/data/annreportcard/rptcard2010.pdf 43 Pew Hispanic Center. “The Mexican American Boom: Births Overtake Immigration.”44 Associated Press. “Mexico Says Immigration Outflow drops to ‘almost nothing.’” August 8, 2011. 45 See Jeffrey S. Passel and D’Vera Cohn. Mexican Immigrants: How Many Come? How Many Leave? Washington, DC: Pew Hispanic Center, July 2009, and Terrazas, Aaron, Demetrios G. Papademetriou, and Marc R. Rosenblum. “Evolving Demographic and Human-Capital Trends in Mexico and Central America and Their Implications for Regional Migration.” Migration Policy Institute, 2011.46 Ibid. 47 Michael S. Rendall, Peter Brownell and Sarah Kups. “Declining Return Migration from the United States to Mexico in the late 2000s Recession: A Research Note.” RAND Labor and Population. February 2010.48 Ibid49 Pew Hispanic Center. “The Mexican American Boom: Births Overtake Immigration.” July 14, 2011. http://www.pewhispanic.org/files/reports/144.pdf 50 Singer, Audrey and Jill H. Wilson. “Refugee Resettlement in Metropolitan America.” Migration Policy Institute, March 2007.51 2010 US Census Bureau Population Census 52 2010 American Community Survey 3 year estimates53 Passel, Jeffrey S. and D’Vera Cohn. “Unauthorized Immigrant Population: State and National Trends, 2010.” Pew Hispanic Center, 201154 Ibid55 Baxter, Tom. “How Georgia’s Anti-Immigration Law Could Hurt the State’s (and the Nation’s) Economy” Center for American Progress, 2011 and “Not-So Sweet Home Alabama: What Alabamians Are Saying About Their State’s New Immigration Law,” Center for American Progress, 2011.56 Jaeger, William K. “Potential Economic Impacts in Oregon of Implementing ProposedDepartment of Homeland Security “No Match” Immigration Rules.” Department of Agricultural and Resource Economics, Oregon State University, 2008.

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http://www.pewhispanic.org/2012/02/21/statistical-portrait-of-the-foreign-born-population-in-the-united-states-2010/







Cover Photos: Mural by Hector Hernandez at Colonia Amistad in Independence Oregon

lati no contributi ons to oregon - wordpress.com no contributi ons to oregon strengthening our state...

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