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Schooling and Labor Market Effects of Temporary Authorization: Evidence from DACA

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  • Amuedo-Dorantes, Catalina

    (University of California, Merced)

  • Antman, Francisca M.

    (University of Colorado, Boulder)

Abstract

This paper explores the labor market and schooling effects of the Deferred Action for Childhood Arrivals (DACA) initiative, which provides work authorization to eligible immigrants along with a temporary reprieve from deportation. The analysis relies on a difference-in-differences approach that exploits the discontinuity in program rules to compare eligible individuals to ineligible, likely undocumented immigrants before and after the program went into effect. To address potential endogeneity concerns, we focus on youths that likely met DACA's schooling requirement when the program was announced. We find that DACA reduced the probability of school enrollment of eligible higher-educated individuals, as well as some evidence that it increased the employment likelihood of men, in particular. Together, these findings suggest that a lack of authorization may lead individuals to enroll in school when working is not a viable option. Thus, once employment restrictions are relaxed and the opportunity costs of higher-education rise, eligible individuals may reduce investments in schooling.

Suggested Citation

  • Amuedo-Dorantes, Catalina & Antman, Francisca M., 2016. "Schooling and Labor Market Effects of Temporary Authorization: Evidence from DACA," IZA Discussion Papers 10144, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp10144
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    References listed on IDEAS

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    1. Constant, Amelie & Zimmermann, Klaus F., 2005. "Immigrant Performance and Selective Immigration Policy: A European Perspective," National Institute Economic Review, Cambridge University Press, vol. 194, pages 94-105, October.
    2. Francisco L. Rivera-Batiz, 1999. "Undocumented workers in the labor market: An analysis of the earnings of legal and illegal Mexican immigrants in the United States," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(1), pages 91-116.
    3. Sherrie A. Kossoudji & Deborah A. Cobb-Clark, 2002. "Coming out of the Shadows: Learning about Legal Status and Wages from the Legalized Population," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 598-628, July.
    4. Catalina Amuedo-Dorantes & Cynthia Bansak & Steven Raphael, 2007. "Gender Differences in the Labor Market: Impact of IRCA," American Economic Review, American Economic Association, vol. 97(2), pages 412-416, May.
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    More about this item

    Keywords

    undocumented immigrants; work authorization;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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