TO MINNESOTAS ECONOMY
IMMIGRANT CONTRIBUTIONS
TO MINNESOTAS ECONOMY
Minnesota boasts a long history of welcoming immigrants. From the earliest days of statehood to today,
immigrants from all over the world have come to Minnesota, adding to its prosperity and vitality through their
economic and cultural contributions. Building upon the Minnesota Business Immigration Coalitions landmark
report, The Economic Contribution of Immigrants in Minnesota, this fact sheet provides an updated look at the
growingand crucialrole that Minnesotas immigrant communities play in strengthening the states economy.
1. Purchasing power is calculated as aggregated household income, including wage, social security, supplementary security, and retirement income, minus the average federal, state,
and local tax incidence for a household in Minnesota, or 28.9 percent of gross income.
2. Data on household incomes was derived from the 2013 American Community Survey. The estimated average federal tax incidence of 17.4 percent was taken from a 2001
Congressional Budget Office study. The 8 percent% state and 3.5 percent% local tax incidence estimate was taken from a 2013 Minnesota Department of Revenue report.
3. Adopting the methodology used in several other studies, such as the Center for American Progress Improving Lives, Strengthening Finances: The Benefits of Immigration Reform to
Social Security and the Partnership for a New American Economys Staying Covered: How Immigrants Have Prolonged the Solvency of One of Medicares Key Trust Funds and
Subsidized Care for U.S. Seniors, flat tax rates of 12.4 percent for Social Security contributions and 2.9 percent for Medicare contributions were used in tandem with estimates for
aggregated foreign-born household income from wage earnings and Social Security income to calculate immigrant contributions to each fund.
4.These figures derive from the author's calculations based on 2008-2010 ACS PUMS sample immigrants share of wage income and self-employment income
(approx. 7.5%) and BEA (2014) Advance 2013 and Revised 19972012 Statistics of GDP by State, June 11.
TOTAL POPULATION
FOREIGN-BORN
$7.7 BILLION
$110.8 BILLION
$1 . 2 BI L L I ON
T OT AL CONT RIB UT I ON
BY FORE IGN- B OR N
RE SI DEN T S
$295 MILLIO N
TO TA L CO NTRI BU TI O N
BY FO REI GN-BO RN
RES I D EN TS
7.5%
SOCIAL
SECURITY
MEDICARE
$3. 9 BI L L I O N
T OT AL CONT RIBUT ION
BY ST AT E RE SIDE NT S
$ 1 6 . 9 B I L L I ON
T OT A L C ON T R I B UT I ON
B Y S T A T E R ES I DEN T S
OF MEDICARE
CONTRIBU TION S
7.1%
OF SOCIAL SEC UR IT Y
CONTRIBU TION S
7.4%
OF MINNESOTA' S
P OP U LATION
$379 MILLIO N
AM OUNT PA I D B Y
FORE IGN- B OR N
RE SI DEN T S
A MO U N T PA I D BY
FO REI GN-BO RN
RESI D EN TS
LOCAL TAX
CONTRIBUTIONS
STATE TAX
CONTRIBUTIONS
$5 . 4 BI L L I O N
$1.2 BILLION
TOTAL AMOU NT OF S T AT E
& LOCAL TAXES P AID
BY FOREIGN-BORN
RESIDENTS
$ 1 2 . 4 B I L L I ON
A M OUN T P A I D B Y A LL
S T A T E R ES I DEN T S
7.5%
$22.4 BILLION
FOR EIGN-BOR N R ES ID ENTS
C ONTR IBUTION TO GD P
$298.2 BILLION
TO T AL ST AT E G DP
FOREIGN- B O R N
RESIDENT S
CONTRIBU T ION
TO GDP
TOTAL POPULATION
2000-20 1 3
2000-2013
4,919,479
5,742,713
5,420,380
260,463
403,514
2000
5,363,675
193,751
2013
FOREIGN-BORN
274,687
2000
2013
143,051
NEW FOREIGN-BORN
MINNESOTA RESIDENTS
500,900
TOTAL NUMBER OF
NEW MINNESOTA
RESIDENTS
54.92%
28.6%
POPULATION CHANGE
EXPLAINED BY IMMIGRATION
(All data is from 2012-2013)
10.18%
GROWTH RATE OF
FOREIGN-BORN
POPULATION
RATE OF CHANGE
IN TOTAL
POPULATION
7.4%
TOTAL POPULATION
THAT WAS
FOREIGN-BORN
(2013)
5. Dowell Myers, Immigrants Contributions in an Aging America, Communities and Banking (2008), http://csii.usc.edu/documents/myers_immigrants_contribution.pdf.
TOTAL WORKERS
MANUFACTURING
23.5%
PROFESSIONAL SERVICES
RETAIL TRADE
20.5%
8.1%
13.1%
11.0%
6.3%
CONSTRUCTION
TRANSPORTATION
3.0%
3.2%
2.4%
WHOLESALE TRADE
2.0%
FOREIGN-BORN WORKERS
INFORMATION
1.3%
6. All industry figures are derived from the authors analysis of the 2008-2012 American Community Survey IPUMS sample.
7. Deloitte and the Manufacturing Institute, Boiling Point? The Skills Gap in US Manufacturing (2011). Available here: http://www.themanufacturinginstitute.org/~/media/A07730B2A798437D98501E798C2E13AA.ashx.
8. Mike Cronin, MinnPost, Minnesota Responds to Rural Doctor Shortage with Teams, Training, and Telemedicine, (Aug. 11, 2014). Available here: http://www.minnpost.com/health/2014/08/minnesota-responds-rural-doctor-shortage-teams-training-telemedicine.
NATIVE-BORN
FOREIGN-BORN
GE D , S O ME C O L L E GE , A S S O C I A TE S D E GRE E
11.4%
5.4%
B ACHELORS DE G R EE
GRA D U A TE E D U C A TI O N
7.3%
11.9%
TOT AL AGED 25 AN D AB O V E
8.4%
EDUCATION BREAKDOWN OF MINNESOTA'S FOREIGN-BORN AND NATIVE-BORN
10.5%
14.7%
GRADUATE
DEGREE
GRADUATE
DEGREE
18.7%
BACHELORS
DEGREE
21.7%
43.8%
HIGH SCHOOL
OR LESS
HIGH SCHOOL
OR LESS
BACHELORS
DEGREE
22.7%
GED, SOME COLLEGE,
ASSOICIATES DEGREE
32.3%
35.6%
GED, SOME COLLEGE,
ASSOICIATES DEGREE
14.7%
43.8%
10.5%
32.3%
OF THE FOREIGN- BO R N
P OP ULATION HAS A H I G H
S CHOOL DEGREE OR L E SS
NATIVE-BORN
FOREIGN-BORN
SERVICE
OCCUPAT IO N S
418,110
60,602 (14.49%)
627,165
37,598 (5.99%)
N A TU RA L RE S O U RC E S ,
C O N S TRU C TI O N & MA I N TE N A NC E
O C C U PA TI O NS
PRO D U C TI O N, TRA NS PO RTA TI O N
& MA TE RI A L MO V I NG
O C C U PA TI O NS
201,312
15,089 (7.50%)
320,035
50,708 (15.84%)
38.9%
11.1%
$104.34 BN
$25.92 BN
*FIRMS F O U N D E D B Y
IMMI G R AN T S
OR CHILD O F AN
IMM IG R AN T
*F IR M S F O U N D ED B Y
IM M IG R AN T S
264,524
68,565
F U L L TI ME E MPL O YE E S I N F I RMS
F O U N D E D BY I MMI GRA NTS O R THE
C HI L D RE N O F I MMI GRA NTS
F U L L TI ME E MPL O Y E E S
I N F I RMS F O U N D E D
BY I MMI GRA NTS
9. Our Heritage, Thrivent Financial [Website]. Accessed Oct. 22, 2014, available here: https://www.thrivent.com/aboutus/ourorganization/history.html.
10. Jacob Vigdor, Partnership for a New American Economy and Americas Society/Council of the Americas, Immigration and the Revival of American Cities (Sept. 12, 2013).
Accessed Oct. 22, 2014, available here: http://www.renewoureconomy.org/research/immigrants-boost-u-s-economic-vitality-through-the-housing-market/.
11. Data for these estimates are derived from the 2008 and 2012 American Community Survey Public Use Micro Sample (PUMS) available at census.gov. Median house values are
expressed in 2013 dollars.
12. Data for these estimates are derived from the 2008 and 2012 American Community Survey Public Use Micro Sample (PUMS) available at census.gov. Median house values are
expressed in 2013 dollars.
$188
2
$62
$327
4
7
$2111 $1781
10
$270
11
$1222
$194
$53
$1423
13
12
$299
$405
15
$93
17
16
$74
$37
$510
14
$127
A R E 14
MEDIAN HOME
PRICES 2012
MEDIAN HOME
PRICES 2008
CHANGE IN FOREIGN
BORN SINCE 2008
$1 26 , 83 1
$12 9,8 44
1516
$12 6,643
$ 1 52, 1 9 7
$162 ,305
504
$152 ,135
$ 1 52, 1 9 7
$18 3,946
-2 642
$152 ,52 5
$ 1 77, 56 3
$2 48 ,8 68
-98 59
$178 ,78 5
$ 24 3 , 51 5
$308 ,38 0
1568
$2 43,32 1
$ 202, 9 3 0
$2 60,770
1148 1
$2 01,507
$ 202, 9 3 0
$2 70,509
17037
$2 00,8 18
$ 1 82, 6 3 7
$2 43,458
14368
$18 0,8 56
$228, 29 6
$2 8 1,32 9
2 411
$2 2 7,997
10
$ 1 4 2, 051
$162 ,305
2 176
$141,78 1
11
$1 21 , 758
$108 ,2 03
431
$12 1,704
12
$ 1 52, 1 9 7
$18 3,946
-754
$152 ,2 91
13
$ 1 9 2, 783
$2 16,407
32 72
$192 ,378
14
$1 4 7, 1 24
$162 ,305
102 8
$146,997
$18 2 ,12 7
15
$ 1 82, 6 3 7
$18 3,946
4115
16
$1 26 , 83 1
$143,911
-2 96
$12 6,8 68
17
$ 9 5, 3 77
$91,973
595
$95,303
13.The housing data are derived directly from US Census geographic classifications of PUMAs (Public Use Microdata Areas). In some cases we have aggregated the PUMAs so they are
comparable across years, due to Census re-classification of PUMAs in 2010. The smaller sample and relatively few observations in smaller geographic regions do not allow us to breakdown
the regions into smaller geographic areas.
14. See appendix A for a breakdown of the geographic areas.expressed in 2013 dollars.
CONCLUSION
The contributions that immigrants make to Minnesota are as diverse as the states immigrant populations
themselves. Their impact as taxpayers and workers can be felt in a whole range of sectors of our economy
and our statefrom the jobs in the workforce that go filled because of their unique skill sets to the major
Fortune 500 firms that wouldnt exist without their creativity and entrepreneurial vision. This brief makes clear
that immigrants are a critical part of Minnesotas success story. Our ability to succeed depends in part on the
ability of new generations to come here, and like those immigrants before them, continue to achieve the
American dream.
A P PEN DIX A
L I ST OF C OUN TIES IN GEOGRA P H IC A RE AS
The areas consist of PUMAs (Public Use Microdata Areas) and/or aggregate PUMAs, which comprise one or
more counties, as classified by the US Census.
AREA 1
Clay County
Kittson County
M a r s h a l l C o u n ty
N o r m a n C o u n ty
Pen n i n gt o n C o un ty
Po l k C o u n t y
Red La k e C o u nty
Ro s e a u C o u n t y
AREA 2
B ec k e r C o u n t y
B el t r a m i C o u nty
C l ea r w a t er C oun ty
H u b b a r d C o u n ty
La k e O f Th e W o o ds
County
M a h n o m en C o unty
Pin e Co un ty
Po pe Co un ty
S herbu rne Co u nty
S t. Lo uis Co un t y
S tearns Co un ty
S tev ens Co un ty
S wif t Co u nty
T o dd Co u nty
T rav erse Co un t y
W aden a Co un ty
W ilkin Co u nty
W righ t Co u nty
AREA 4
A n o ka Co u nty
AREA 5
S co tt Co un ty
Carv er Co u nty
AREA 3
Ai t k i n C o u n t y
B en t o n C o u n t y
B i g S t o n e C o un ty
Carlton County
Cass County
C h i s a go C o u n ty
Cook County
C r o w W i n g C o un ty
D o u gl a s C o u n ty
Grant County
Isanti County
Itasca County
K a n a b ec C o u nty
K o o c h i c h i n g Co u nty
La k e C o u n t y
M i l l e La c s C o u nty
M o r r i s o n C o u nty
O t t e r T a i l C o u nty
AREA 6
D ako ta Co u nty
AREA 7
AREA 11
AREA 17
Brown County
Chippe wa County
La c qui Pa rle County
Lincoln County
Lyon County
R e dwood County
Y e llow Me dicine County
Cottonwood Count y
Fa riba ult County
Ja ck son County
Ma rtin County
Murra y County
Noble s County
Pipe stone County
R ock County
Wa tonwa n County
AREA 12
Blue E a rth County
Nicolle t County
Wa se ca County
AREA 13
Goodhue County
Le Sue ur County
R ice County
AREA 14
Fillm ore County
Houston County
Wa ba sha County
Winona County
AREA 8
AREA 15
Olm ste d County
Ramsey
AREA 9
W ashin gto n Co unty
AREA 10
Kandiy o h i Co u nty
M cLeo d Co u nty
M eeker Co u nty
Renv ille Co u nty
S ibley Co u nty
AREA 16
Dodg e County
Fre e born County
Mowe r County
Ste e le County