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Do Human Capital Decisions Respond to the Returns to Education? Evidence from DACA

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  • Elira Kuka
  • Na'ama Shenhav
  • Kevin Shih

Abstract

This paper studies human capital responses to the availability of the Deferred Action for Childhood Arrivals (DACA) program, which provides temporary work authorization and deferral from deportation for undocumented, high-school-educated youth. We use a sample of young adults that migrated to the United States as children to implement a difference-in-difference design that compares noncitizen immigrants ("eligible") to citizen immigrants ("ineligible") over time. We find that DACA significantly increased high school attendance and high school graduation rates, reducing the citizen-noncitizen gap in graduation by 40 percent. We also find positive, though imprecise, impacts on college attendance.

Suggested Citation

  • Elira Kuka & Na'ama Shenhav & Kevin Shih, 2020. "Do Human Capital Decisions Respond to the Returns to Education? Evidence from DACA," American Economic Journal: Economic Policy, American Economic Association, vol. 12(1), pages 293-324, February.
    • Handle: RePEc:aea:aejpol:v:12:y:2020:i:1:p:293-324
    DOI: 10.1257/pol.20180352
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    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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    1. Do Human Capital Decisions Respond to the Returns to Education? Evidence from DACA (American Economic Journal: Economic Policy 2020) in ReplicationWiki

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