The Effects of Deferred Action for Childhood Arrivals on the Educational Outcomes of Undocumented Students.

Deferred Action for Childhood Arrivals (DACA) is the first large-scale immigration policy to affect undocumented immigrants in the United States in decades and offers eligible undocumented youth temporary relief from deportation as well as renewable work permits. Although DACA has improved the economic conditions and mental health of undocumented immigrants, we do not know how DACA improves the social mobility of undocumented immigrants through its effect on educational attainment. We use administrative data on students attending a large public university to estimate the effect of DACA on undocumented students' educational outcomes. The data are unique because they accurately identify students' legal status, account for individual heterogeneity, and allow separate analysis of students attending community colleges versus four-year colleges. Results from difference-in-difference estimates demonstrate that as a temporary work permit program, DACA incentivizes work over educational investments but that the effect of DACA on educational investments depends on how easily colleges accommodate working students. At four-year colleges, DACA induces undocumented students to make binary choices between attending school full-time and dropping out of school to work. At community colleges, undocumented students have the flexibility to reduce course work to accommodate increased work hours. Overall, the results suggest that the precarious and temporary nature of DACA creates barriers to educational investments.