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The Labor and Educational Effects of DACA: Evidence from California

TL;DR: DACA-eligible individuals post-implementation show improved labor outcomes, working more hours and earning higher incomes, with reduced self-employment. However, there's no change in unemployment. GED attainment doesn't increase, but there's a slight rise in college attendance, possibly due to policies like the California Dream Act. This indicates DACA recipients invest in education despite program uncertainties.

1. Introduction

The Deferred Action of Childhood Arrivals (DACA) program has been a focal point of debate since its inception in 2012. This research paper aims to contribute to the existing literature by analyzing recent data to understand the long-term effects of DACA on labor and educational outcomes of its recipients in California. The study delves into the program's background, legal challenges, geographic distribution of recipients, economic theories, societal impacts, and individual outcomes.

1.1 Background of DACA

DACA, established in 2012 by President Obama, aimed to provide temporary relief to undocumented immigrants who arrived in the United States as children. This section explores the eligibility criteria and limitations of the program, highlighting its significance and challenges.

1.2 Legal Challenges

The thesis examines significant legal challenges to DACA, including the Trump Administration's attempt to rescind the program and ongoing litigation challenging its legality.

1.3 Geographic Distribution of DACA Recipients

USCIS data reveals the geographic distribution of DACA recipients, emphasizing California's prominence in hosting a large population of recipients. DACA_COB_Share daca_us_pct_share_map

2. Literature Review

The literature review encompasses economic theories, societal impacts, and individual outcomes of DACA recipients. Economic theories such as the dual-sector model and segmented labor markets are discussed, alongside societal impacts and individual outcomes based on existing research.

3. Data

The thesis utilizes data from the U.S. Census Bureau's American Community Survey (ACS) to analyze labor and educational effects. It outlines the data source, description, and methodology for identifying DACA eligibility.

4. Empirical Strategy

The study employs a difference-in-differences approach to analyze labor and educational effects, considering DACA-eligible and ineligible groups as treatment and control groups, respectively.

5. Empirical Results

The results highlight significant labor market improvements among DACA-eligible individuals post-implementation, with mixed effects on educational outcomes. The discussion addresses the implications and limitations of the findings.

reg_labor_control reg_education_controls Screenshot 2024-06-01 at 2 15 10 AM

6. Conclusion and Summary

In conclusion, the study underscores the importance of understanding the long-term effects of DACA on labor and education. It emphasizes the need for informed policy decisions to support undocumented immigrant youth and unlock their full potential.

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