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Is ICE freezing US agriculture? Farm-level adjustment to increased local immigration enforcement

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  • Ifft, Jennifer
  • Jodlowski, Margaret

Abstract

We study the impact of US immigration enforcement through a locally-implemented program known as 287(g) on agriculture using confidential farm-level data and farm census data. We address the endogeneity of program participation by using pre-program county jail occupancy as an instrument. We provide evidence that the agricultural sector experienced limited endogenous technical change in response to the negative labor supply shock caused by increased immigration enforcement. Fuel expenses increased, consistent with predictions of an increase in automated technology by models of endogenous technical change. However, a corresponding decline in agricultural acres and employment and an increase in labor expenditure suggests capital-labor substitution was insufficient to fully offset the impact of the shock.

Suggested Citation

  • Ifft, Jennifer & Jodlowski, Margaret, 2022. "Is ICE freezing US agriculture? Farm-level adjustment to increased local immigration enforcement," Labour Economics, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:labeco:v:78:y:2022:i:c:s092753712200094x
    DOI: 10.1016/j.labeco.2022.102203
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    1. Shrestha, Samyam & Sant'Anna, Hugo, 2023. "Immigration Enforcement, Entrepreneurship, and Firm Entry/Exit," 2023 Annual Meeting, July 23-25, Washington D.C. 335611, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Immigration enforcement; Agricultural labor markets; Farm workers;
    All these keywords.

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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