This report documents the many economic contributions of the 214,234 people of Mexican origin in Minnesota. Most of the data in this report comes from the US Census Bureau – American Community Survey 2021, Census 2000 and Census data compiled by Minnesota Compass. This report builds on an earlier report from 2008 which was also published in the William Mitchell Law Review.
Mexican Americans in Minnesota have a total income of over $4 billion. This represents a very powerful consumer base, not only in the metro area but also in the many small and large towns in Greater Minnesota. According to data from Minnesota Compass, 38 percent of Mexican Americans live in Greater Minnesota. They shop not only at the local mercados but also in the local grocery shop, the retail store, the car dealership and call the local plumber and electrician when needed. Over the past two decades the impact of this consumer economic engine on the Minnesotan economy has grown over four times.
This $4.3 billion economic engine contributes to the tax base at different levels from sales tax to property taxes. The Minnesota Tax Incidence study estimates that Minnesotans on average pay 12 percent of their income on state and local taxes. Applying this estimate to total income we can state that Mexican Americans contribute at least half a billion dollars to the tax base in Minnesota.
There is a significant growth rate in the value of homes owned by Mexican Americans in Minnesota from less than a billion dollars in 2000 to $5.6 billion in 2021. This has important implications for local property taxes all across Minnesota as well as the mortgage and insurance industry and residential services industry.
Mexican Americans in Minnesota also contribute $23 million every month in rental payments to property owners all across Minnesota. Annually this amounts to a sizeable $276 million infusion into rental markets in Greater Minnesota and the metro area.
There is also a growth rate in the educational attainment of Mexican Americans in Minnesota. In 2000, 53 percent had a high school degree or higher. In 2021 it grew to 70 percent. This growth rate could be much higher if Minnesota invested in the education of Mexican American children and youth over the decades.
80 percent of Mexican Americans are US citizens according to the American Community Survey 2021.
Today in a period of critical shortage of workers in Minnesota from essential workers to construction and agricultural workers, there are over 96000 Mexican American workers building the Minnesotan economy in a wide range of economic sectors.
Top sectors where they are playing a critical role are manufacturing, education, health and social services, art, entertainment and recreation, accommodation and food services, professional, scientific and management, administrative and waste management services, retail trade and construction.
Over the past two decades there has also been a shift in sectors from manufacturing for example to education, health and social services. There is a growing presence in agriculture, retail trade, construction and other services.
To provide a perspective on the significant economic contributions of Mexican Americans in Minnesota, I use the ALANA Brain Trust IMPLAN economic model for Minnesota. This model allows us to simulate the economic impact of workers of Mexican origin on various sectors of the economy. These workers help produce $40 billion in goods and services in Minnesota and support over 200,000 jobs and $4.6 billion in taxes.
In the agricultural sector, for example, the model estimates that these workers help produce $2.3 billion in goods and services, support around 11,000 jobs and add $120 million to the tax base.
It is difficult to estimate the number of businesses owned by Mexican Americans because of the lack of data and local studies. The best overall estimate came from the Economic Census in 2012. Projecting growth rates from the 2012 census I estimate there are at least 8000 businesses owned by Mexican Americans across Minnesota. The pictures in these slides capture some of these businesses all across Minnesota – Baxter, Little Falls, Mankato, Windom, Red Wing, Worthington and the Twin Cities metro area. My site offers a virtual tour of these and other cultural destinations across Minnesota at this link https://www.culturaldestinations.org/minnesota.
The data shows a decline in the poverty rate in this community. Poverty rates for families declined from 18 percent in 2000 to 12 percent in 2021. Only 4.4 percent receive any kind of cash public assistance income according to the American Community Survey 2021.
This community contributes a lot to make Minnesota a global destination through their rich cultural assets reflected in the popular Mexican restaurants across Minnesota, the colorful murals and art, musical traditions such as the Mariachi artists and cultural traditions such as Día de los Muertos shared with all.
Mexican Americans add much value to our lives in Minnesota. Unfortunately we have not invested in their talent, skills, businesses and education. There is historical documentation of the deep poverty experienced by migrant workers experienced in Minnesota with many having to live in Saint Paul during the harsh winters without pay or the support of government programs.
We should pay attention to the shift in employment patterns and bring resources for career pathways into these sectors. Workers over 55 years in Minnesota make up more than 25 percent of the workforce in many sectors and so Mexican American workers are playing an important role in that demographic shift. With 36 percent of the Mexican American population below 18 years old, investing in their talents and skills is critical for Minnesota’s future. Mexican American workers are a growing presence in agriculture and at the same time there is a growth in farm ownership. Resources to facilitate the ownership of farms are needed.
We need changes to our immigration policies and local rules and regulations so Mexican American workers can contribute more effectively to the Minnesotan economy.
The slide above provides methodological notes how I derived some of these estimates from data from the US Census bureau.
The original research in 2008 was partly funded by the Minneapolis Foundation and supported by students and staff at Concordia University. Thanks to Sandy Vargas and former Consul Generals of Mexico, Nathan Wolf and Gerardo Guerrero Gomez for inspiring this research.
This research is dedicated to the people of Mexico who showered on me, a traveler, such warm hospitality and respect and to Minnesotans like Ramon Leon and George Costilla, Jr., who pioneered new models of economic development and open doors for all.
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
