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The effect of mass legalization on US state-level institutions: Evidence from the immigration reform and control act

Author

Listed:
  • Lili Yao

    (Mississippi State University, Mississippi State)

  • J. Brandon Bolen

    (Mississippi College)

  • Claudia R. Williamson

    (University of Tennessee At Chattanooga)

Abstract

A new case for immigration restrictions argues that migrants may transmit low productivity to their destination countries by importing low-quality economic institutions. Using the 1986 Immigration Reform and Control Act (IRCA) as a natural experiment, we test whether the legalization of undocumented immigrants affects the quality of state-level economic institutions in the United States. Using synthetic control models, we find that, in the short run, legalization may increase the burden of government spending. However, in the long run, we find statistically insignificant effects of legalization on economic institutions.

Suggested Citation

  • Lili Yao & J. Brandon Bolen & Claudia R. Williamson, 2021. "The effect of mass legalization on US state-level institutions: Evidence from the immigration reform and control act," Public Choice, Springer, vol. 189(3), pages 427-463, December.
    • Handle: RePEc:kap:pubcho:v:189:y:2021:i:3:d:10.1007_s11127-021-00894-x
    DOI: 10.1007/s11127-021-00894-x
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    References listed on IDEAS

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    Cited by:

    1. Lili Yao & J. Brandon Bolen & Claudia R. Williamson, 2022. "Are economic arguments against immigration missing the boat? The fiscal effects of the Mariel Boatlift," Southern Economic Journal, John Wiley & Sons, vol. 89(2), pages 305-325, October.
    2. Alexandre Padilla & Nicolás Cachanosky, 2023. "Immigration and economic freedom of the US states: Does the institutional quality of immigrants' origin countries matter?," Contemporary Economic Policy, Western Economic Association International, vol. 41(3), pages 489-512, July.

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