Sarah Bohn

DID THE 2007 LEGAL ARIZONA WORKERS ACT REDUCE THE STATE'S UNAUTHORIZED IMMIGRANT POPULATION?

We test for an effect of Arizonas 2007 Legal Arizona Workers Act (LAWA) on the proportion of the states population characterized as noncitizen Hispanic. We use the synthetic control method to select a group of states against which Arizonas population trends can be compared. We document a notable and statistically significant reduction in the proportion of the Hispanic noncitizen population in Arizona. The decline observed matches the timing of LAWAs implementation, deviates from the time series for the synthetic control group, and stands out relative to the distribution of placebo estimates for other states in the nation.

U.S. Border Enforcement and Mexican Immigrant Location Choice

We provide the first evidence on the causal effect of border enforcement on the full spatial distribution of Mexican immigrants to the United States. We address the endogeneity of border enforcement with an instrumental variables strategy based on administrative delays in budgetary allocations for border security. We find that 1,000 additional Border Patrol officers assigned to prevent unauthorized migrants from entering a U.S. state decreases that state’s share of Mexican immigrants by 21.9 %. Our estimates imply that if border enforcement had not changed from 1994 to 2011, the shares of Mexican immigrants locating in California and Texas would each be 8 percentage points greater, with all other states’ shares lower or unchanged.

Ethnic Concentration and Bank Use in Immigrant Communities

Despite the many benefits of bank use, large portions of the U.S. population remain unbanked. One of the largest is immigrants, where the incidence of being unbanked is over 13% higher than among natives in 2001. We document growth in the nativity gap in bank use over time. We also test the importance of immigrant enclaves, defined as areas with high concentrations of immigrants from the same region, in explaining the increasing differential in bank use. Combining data from the Survey of Income and Program Participation, Census, and FDIC we find that immigrants living in enclaves are significantly less likely to have a bank account. We take steps to isolate one particular channel through which this might operate: the use of informal financial services provided by co-ethnics in enclaves. The results suggest that demand-side preferences may have power in explaining the persistence of the nativity gap in bank use in the United States.

Immigration and Informal Labor

We develop state‐level proxies for informal employment using differences between measures of self‐reported employment and officially sanctioned employment. In construction and landscaping, industries associated with under‐the‐table labor, we develop proxies for informal work based on productivity per officially sanctioned worker. We relate each set of proxies for informal employment to changes in immigrant population and composition. We find some evidence that immigration is associated with informal employment generally and in the construction industry when prevailing wages are low. States with high concentrations of low‐skilled male immigrants have higher levels of informal employment in the landscaping industry.

Local Immigration Enforcement and Local Economies

We examine the impacts of a locally enforced immigration program—287(g)—on private employer reports to the Quarterly Census of Employment and Wages. Using contiguous‐county pairs to account for time‐varying local economic shocks, we identify impacts on immigrant‐intensive industries that are robust to prepolicy time trends, implementation timing, and the exclusion of pairs with large prepolicy differences. Reported employment was 4 percent higher in manufacturing, but 7–10 percent lower in administrative services. These results are consistent with adverse labor‐supply shocks, and, to a lesser extent, a decline in labor demand for locally produced goods and services.