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

Working Paper: NBER ID: w24315

Authors: Elira Kuka; Naama 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.

Keywords: DACA; human capital; education; immigration policy

JEL Codes: I20; I26; J1; J13


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
DACA (K37)high school attendance (I21)
DACA (K37)high school graduation rates (I21)
DACA (K37)college attendance (I23)
DACA (K37)high school graduation for males (I21)
DACA (K37)high school graduation for females (I21)
DACA (K37)educational attainment gap (I24)

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