New Study: Naturalized Citizens Out Earn Noncitizens by 20,000 Dollars a Year

A new study from The Mendoza Law Firm, drawing on federal wage, labor force, and citizenship cost data, finds naturalized US citizens live in households earning a median 84,000 dollars a year, 20,000 dollars more than noncitizen immigrant households. The analysis pulls together Migration Policy Institute wage data, USCIS citizenship cost figures, and Congressional Budget Office economic projections to trace the return on citizenship from the application fee all the way to the paycheck.

Two immigrants doing the same job can end up on very different pay scales depending on one thing alone, whether they hold a passport. A noncitizen man earns 22.12 dollars an hour on average. A naturalized man earns 32.21 dollars, a gap of ten dollars an hour that holds even after researchers control for education, skills, and English ability.

Key Findings:

• Naturalized men earn 32.21 dollars an hour on average, versus 22.12 dollars for noncitizen men

• Naturalized women earn 25.96 dollars an hour, versus 18.27 dollars for noncitizen women

• Naturalized household median income reaches 84,000 dollars a year, 20,000 dollars above noncitizen households

• Naturalization is linked to an 8.9 percent earnings increase, even after controlling for education and skills

• The real cost of a marriage based green card reaches 10,500 dollars, up to 3.5 times the 3,005 dollar government fee

• 87 percent of newly naturalized citizens borrowed money to cover immigration costs

• South Dakota ranks as the best state for immigrant economic outcomes, while California ranks 49th

Where Immigrants Fare Best

Rank	State	Notes
1	South Dakota	Top ranked for immigrant economic conditions
2	Arkansas
3	Missouri
4	North Dakota
5	Idaho
46	Florida	Large immigrant population, low ranking
48	New York	Large immigrant population, low ranking
49	California	Largest immigrant population, lowest ranking

California, home to one of the country's largest immigrant populations, ranks 49th out of all states for immigrant economic outcomes. New York ranks 48th and Florida 46th. None of the top five states, all smaller and lower cost, rank among the nation's largest immigrant destinations, a clear gap between where immigrants settle and where they are best placed to get ahead financially.

What Citizenship Really Costs

Pathway	Government Fee	Real World Cost	Multiplier
Naturalization	$710 - $760	$2,300 - $4,000	3x to 5x
Marriage Green Card	$3,005	$7,500 - $10,500	Up to 3.5x
Consular Family Case (3 people)	$1,755	$3,350 - $4,750	Up to 2.7x

A marriage based green card is the clearest outlier. Its 3,005 dollar government fee looks manageable on paper, but legal fees, a medical exam, and paperwork push the real bill to as much as 10,500 dollars, more than triple the posted price. Naturalization follows the same pattern at a smaller scale, running three to five times its base fee once legal help and extras are added.

The Debt Behind the Paperwork

87 percent of newly naturalized citizens borrowed money to cover their immigration costs, and 67 percent turned to high interest credit cards, payday loans, or personal loans charging up to 22 percent interest. A small number of nonprofit lenders, including the Mission Asset Fund and One Percent for America, offer 0 to 1 percent interest loans, but most families still pay market rate interest or worse on debt tied directly to the citizenship process. That debt often outlasts the case itself, following families for years after citizenship is granted.

The Citizenship Pay Gap

Group	Hourly Wage	Annual Wage
Naturalized Men	$32.21	$67,000
Naturalized Women	$25.96	$54,000
Noncitizen Men	$22.12	$46,000
Noncitizen Women	$18.27	$38,000

Naturalized men earn 10.09 dollars an hour more than noncitizen men, and naturalized women earn 7.69 dollars an hour more than noncitizen women, gaps of more than 45 percent in both cases. Naturalization is linked to an 8.9 percent earnings increase even after researchers control for education, job skills, and English ability, pointing to a real, separate return on citizenship status itself, not just background or time in the country.

Why This Matters Now

The earnings gap sits next to a citizenship process that keeps getting more expensive. A proposed DHS fee increase would raise the naturalization application fee by roughly 75 percent, on top of costs that already push most applicants into debt.

The households facing the highest cost to naturalize are the same households who stand to gain the most from finishing the process, a 20,000 dollar income gap that grows every year citizenship is delayed. That combination, rising cost and rising reward, is what makes this a story worth covering now.

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Methodology: The Mendoza Law Firm analyzed USCIS fee schedules, DHS proposed rule changes, Migration Policy Institute wage analysis, Congressional Budget Office economic projections, and a 2026 state level ranking of immigrant economic conditions covering employment, entrepreneurship, income gaps, job growth, and cost of living, alongside a 2022 survey on immigration related borrowing conducted by One Percent for America.

Data Sources:

•     US Citizenship and Immigration Services [uscis.gov]

•     US Department of Homeland Security [dhs.gov]

•     Migration Policy Institute [migrationpolicy.org]

•     Congressional Budget Office [cbo.gov]

•     One Percent for America [onepercentforamerica.org]

This analysis comes from The Mendoza Law Firm. Full Study: https://mendozafirm.com/research/cost-to-be-an-american/