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The Self-Employment Effects of Secure Communities in the United States

Author

Listed:
  • Raffi E. García
  • Alejandro Gutiérrez-Li

Abstract

Illegal immigration has increased substantially in recent years. In this paper, we analyze how Secure Communities (SC), a major internal immigration enforcement program, affected self-employment participation and income in the United States between 2008 and 2013. Following a difference-in-difference approach, we find that the staggered implementation of the SC reduced self-employment rates across the country, but not substantially. However, the policy had a significant negative impact on the income of the self-employed, particularly affecting White and male individuals and workers in the manufacturing and service sectors. Overall, our results highlight the unintended consequences of SC on entrepreneurship in the United States.

Suggested Citation

  • Raffi E. García & Alejandro Gutiérrez-Li, 2023. "The Self-Employment Effects of Secure Communities in the United States," AEA Papers and Proceedings, American Economic Association, vol. 113, pages 361-366, May.
    • Handle: RePEc:aea:apandp:v:113:y:2023:p:361-66
    DOI: 10.1257/pandp.20231126
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    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • K37 - Law and Economics - - Other Substantive Areas of Law - - - Immigration Law
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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