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

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Listed:
  • 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 U.S. as children to implement a difference-in-differences design that compares non-citizen 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%. We also find positive, though imprecise, impacts on college attendance.

Suggested Citation

  • Elira Kuka & Na'ama Shenhav & Kevin Shih, 2018. "Do Human Capital Decisions Respond to the Returns to Education? Evidence from DACA," NBER Working Papers 24315, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24315
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    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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