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DACA’s Uncertain Path: How Policy Threats Reshape Economic and Social Gains for Recipients

Author

Listed:
  • Amuedo-Dorantes, Catalina

    (University of California, Merced)

  • Wang, Chunbei

    (Virginia Tech)

Abstract

Since 2012, DACA has provided deportation relief and work authorization to immigrants brought to the U.S. as children. This study examines how legal and political uncertainty, triggered by efforts to terminate the program in 2017, affected recipients’ economic and social outcomes. Using difference-in-differences and event study methods, we find that gains in education, health, and geographic mobility largely persisted, while employment and income benefits eroded, particularly in non-sanctuary and high-enforcement states. However, strong local DACA networks helped buffer these losses. The results underscore how policy instability can undermine progress in some areas while resilience emerges in others, especially within supportive local environments.

Suggested Citation

  • Amuedo-Dorantes, Catalina & Wang, Chunbei, 2025. "DACA’s Uncertain Path: How Policy Threats Reshape Economic and Social Gains for Recipients," IZA Discussion Papers 17914, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp17914
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    References listed on IDEAS

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    1. Borjas, George J., 2017. "The labor supply of undocumented immigrants," Labour Economics, Elsevier, vol. 46(C), pages 1-13.
    2. Giuntella, Osea & Lonsky, Jakub & Mazzonna, Fabrizio & Stella, Luca, 2021. "Immigration policy and immigrants’ sleep. Evidence from DACA," Journal of Economic Behavior & Organization, Elsevier, vol. 182(C), pages 1-12.
    3. Wang, Jia & Winters, John V. & Yuan, Weici, 2022. "Can legal status help unauthorized immigrants achieve the American dream? Evidence from the Deferred Action for Childhood Arrivals program," Regional Science and Urban Economics, Elsevier, vol. 95(C).
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    Keywords

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    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • 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

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