EconPapers    
Economics at your fingertips  
 

Labor Market Impacts of States Issuing of Driving Licenses to Undocumented Immigrants

Amuedo-Dorantes, Catalina (), Esther Arenas-Arroyo () and Almudena Sevilla ()
Additional contact information
Amuedo-Dorantes, Catalina: San Diego State University
Almudena Sevilla: University College London

No 12049, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: Twelve U.S. states, plus the District of Columbia, have recently enacted measures granting undocumented immigrants access to driving licenses. We exploit the state and temporal variation in the issuing of state driving licenses to undocumented immigrants to estimate its impact on these population's employment outcomes. Using 2013 through 2017 data from the monthly Current Population Survey and its Outgoing Rotation Groups, we show that likely undocumented women increase their labor supply in response to the availability of driver licenses. Their work propensity rises by 4.2 percentage points, aligning it to that of their male counterparts. In addition, those at work raise their weekly hours of work by 4 percent. Overall, their real hourly wages drop by 3 percent. We find no similar impacts among likely undocumented men –a result consistent with a standard labor supply model predicting a greater response from individuals with a larger elasticity. Additionally, we find no apparent impacts on the labor supply and wages of similarly skilled Hispanic native-born women. At a time when anti-immigrant sentiments are at an all-time high, understanding how these policies impact targeted groups and similarly skilled native populations is crucial for maintaining an informed immigration policy debate.

Keywords: driver licenses; undocumented immigrants; labor market impacts; United States (search for similar items in EconPapers)
JEL-codes: I38 J15 J22 K37 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int, nep-lab and nep-mig
Date: 2018-12
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://ftp.iza.org/dp12049.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp12049

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute for the Study of Labor (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Mark Fallak ().

 
Page updated 2019-04-14
Handle: RePEc:iza:izadps:dp12049