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

Catalina Amuedo-Dorantes () and Chunbei Wang ()
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Catalina Amuedo-Dorantes: University of California, Merced
Chunbei Wang: Virginia Tech

No 17914, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: policy uncertainty; education; employment; undocumented immigrants; DACA; local enforcement (search for similar items in EconPapers)
JEL-codes: J12 J15 J18 (search for similar items in EconPapers)
Date: 2025-05
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