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Labor Market Impacts of ICE Activity in Trump 2.0

Elizabeth Cox and Chloe East

No 35129, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We provide the first causal, national empirical analysis of the labor market impacts of heightened immigration enforcement during the second Trump administration. Enforcement increased everywhere, but, we take advantage of the fact that the increases have been uneven across geographic areas to classify areas as treated or control and then implement an event study and difference-in-differences design. Areas that experienced particularly large increases in the number of arrests also experienced a decrease in work among likely undocumented immigrants who remain in the U.S., compared to areas with smaller increases in arrests. We find no evidence of positive spillover effects to U.S.-born workers and U.S.-born workers who work in immigrant-heavy sectors are harmed.

JEL-codes: J1 J2 J6 (search for similar items in EconPapers)
Date: 2026-04
Note: LE LS PE
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