IDEAS home Printed from https://ideas.repec.org/a/kap/reveho/v17y2019i1d10.1007_s11150-017-9361-5.html
   My bibliography  Save this article

Legal status and immigrants’ educational investment decisions

Author

Listed:
  • Sankar Mukhopadhyay

    (University of Nevada)

Abstract

We develop a two-period model of educational investment where current legal status and expectations about future legal status affects educational investment decisions. The theoretical model predicts that educational investment among illegal immigrants is a decreasing function of deportation probability. The theoretical model also suggests that which group (illegal or legal immigrants), will invest more in education depends on subjective beliefs and relative returns to education. Next we analyze educational investment using data from the two waves of New Immigrant Survey, supplemented with enforcement data. Empirical results show that an increase in deportation probability reduces educational investment among illegal immigrants. Empirical results also show that legalization increases the probability of investment in education by 15.5 percentage points among illegal immigrants.

Suggested Citation

  • Sankar Mukhopadhyay, 2019. "Legal status and immigrants’ educational investment decisions," Review of Economics of the Household, Springer, vol. 17(1), pages 1-29, March.
    • Handle: RePEc:kap:reveho:v:17:y:2019:i:1:d:10.1007_s11150-017-9361-5
    DOI: 10.1007/s11150-017-9361-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11150-017-9361-5
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11150-017-9361-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Neeraj Kaushal, 2006. "Amnesty Programs and the Labor Market Outcomes of Undocumented Workers," Journal of Human Resources, University of Wisconsin Press, vol. 41(3).
    2. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    3. Lofstrom, Magnus & Hill, Laura E. & Hayes, Joseph, 2010. "Did Employer Sanctions Lose Their Bite? Labor Market Effects of Immigrant Legalization," IZA Discussion Papers 4972, Institute of Labor Economics (IZA).
    4. Vincenzo Caponi & Miana Plesca, 2014. "Empirical characteristics of legal and illegal immigrants in the USA," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(4), pages 923-960, October.
    5. Francesco Fasani, 2015. "Understanding the Role of Immigrants’ Legal Status: Evidence from Policy Experiments," CESifo Economic Studies, CESifo Group, vol. 61(3-4), pages 722-763.
    6. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760, Elsevier.
    7. Amuedo-Dorantes, Catalina & Arenas-Arroyo, Esther & Sevilla, Almudena, 2016. "Immigration Enforcement and Childhood Poverty in the United States," IZA Discussion Papers 10030, Institute of Labor Economics (IZA).
    8. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    9. Mark C. Regets & Harriet Orcutt Duleep, 1999. "Immigrants and Human-Capital Investment," American Economic Review, American Economic Association, vol. 89(2), pages 186-191, May.
    10. Christian Dustmann & Francesco Fasani & Biagio Speciale, 2017. "Illegal Migration and Consumption Behavior of Immigrant Households," Journal of the European Economic Association, European Economic Association, vol. 15(3), pages 654-691.
    11. Abadie, Alberto & Imbens, Guido W., 2011. "Bias-Corrected Matching Estimators for Average Treatment Effects," Journal of Business & Economic Statistics, American Statistical Association, vol. 29(1), pages 1-11.
    12. Catalina Amuedo-Dorantes & Cynthia Bansak, 2012. "The Labor Market Impact of Mandated Employment Verification Systems," American Economic Review, American Economic Association, vol. 102(3), pages 543-548, May.
    13. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    14. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
    15. Ying Pan, 2012. "The Impact of Legal Status on Immigrants’ Earnings and Human Capital: Evidence from the IRCA 1986," Journal of Labor Research, Springer, vol. 33(2), pages 119-142, June.
    16. Sherrie A. Kossoudji & Deborah A. Cobb-Clark, 2002. "Coming out of the Shadows: Learning about Legal Status and Wages from the Legalized Population," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 598-628, July.
    17. Christian Dustmann & Francesco Fasani & Biagio Speciale, 2016. "Illegal migration and consumption behavior of immigrant households," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01306603, HAL.
    18. Jasso, Guillermina & Massey, Douglas S. & Rosenzweig, Mark R. & Smith, James P., 2008. "From Illegal to Legal: Estimating Previous Illegal Experience among New Legal Immigrants to the United States," IZA Discussion Papers 3441, Institute of Labor Economics (IZA).
    19. Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, vol. 74(1), pages 235-267, January.
    20. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tymon Słoczyński, 2015. "The Oaxaca–Blinder Unexplained Component as a Treatment Effects Estimator," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(4), pages 588-604, August.
    2. Altangerel, Khulan, 2019. "Essays on immigration policy," Other publications TiSEM 954c6300-249e-496c-8cef-0, Tilburg University, School of Economics and Management.
    3. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    4. Sergei Guriev & Biagio Speciale & Michele Tuccio, 2019. "How do Regulated and Unregulated Labor Markets Respond to Shocks? Evidence from Immigrants During the Great Recession," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 35(1), pages 37-76.
    5. Paolo Pinotti, 2017. "Clicking on Heaven's Door: The Effect of Immigrant Legalization on Crime," American Economic Review, American Economic Association, vol. 107(1), pages 138-168, January.
    6. Sheng Guo & Qiang Kang & Oscar A. Mitnik, 2022. "Dynamics of managerial power and CEO compensation in the course of corporate distress: Evidence from 1992 to 2019," Financial Management, Financial Management Association International, vol. 51(3), pages 797-825, September.
    7. Esaka, Taro, 2014. "Are consistent pegs really more prone to currency crises?," Journal of International Money and Finance, Elsevier, vol. 44(C), pages 136-163.
    8. Ferman, Bruno, 2021. "Matching estimators with few treated and many control observations," Journal of Econometrics, Elsevier, vol. 225(2), pages 295-307.
    9. Claudio Deiana & Ludovica Giua & Roberto Nisticò, "undated". "Legalization and Long-Term Outcomes of Immigrant Workers," Development Working Papers 480, Centro Studi Luca d'Agliano, University of Milano.
    10. Arraiz, Irani & Calero, Carla & Jon, Songqing & Peralta, Alexandra, 2015. "Planting the seeds: The impact of training on mando producers in Haiti," 2015 Conference, August 9-14, 2015, Milan, Italy 212622, International Association of Agricultural Economists.
    11. Eric Schuss, 2020. "Substantial Labor Market Effects of the Residency Status," Journal of International Migration and Integration, Springer, vol. 21(4), pages 993-1026, December.
    12. Eric Schuss, 2017. "Substantial Labor Market Effects of the Residency Status: How Important Are Initial Conditions at Arrival for Immigrants?," SOEPpapers on Multidisciplinary Panel Data Research 952, DIW Berlin, The German Socio-Economic Panel (SOEP).
    13. Arraiz, Irani & Calero, Carla & Jon, Songqing & Peralta, Alexandra, 2015. "Planting the seeds: The impact of training on mando producers in Haiti," 2015 Conference, August 9-14, 2015, Milan, Italy 212622, International Association of Agricultural Economists.
    14. Alexandra Peralta & Scott M. Swinton & Songqing Jin, 2018. "The Secret to Getting Ahead Is Getting Started: Early Impacts of a Rural Development Project," Sustainability, MDPI, vol. 10(8), pages 1-20, July.
    15. Giovanni Mastrobuoni & Paolo Pinotti, 2011. "Legal status of immigrants and criminal behavior: evidence from a natural experiment," Temi di discussione (Economic working papers) 813, Bank of Italy, Economic Research and International Relations Area.
    16. Claudio Deiana & Ludovica Giua & Roberto Nisticò, 2021. "Getting Off on the Wrong Foot: The Long-Term Effects of Missing a Large-Scale Amnesty for Immigrant Workers," CSEF Working Papers 625, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    17. Almer, Christian & Winkler, Ralph, 2017. "Analyzing the effectiveness of international environmental policies: The case of the Kyoto Protocol," Journal of Environmental Economics and Management, Elsevier, vol. 82(C), pages 125-151.
    18. Abbott, Joshua K. & Klaiber, H. Allen, 2011. "The Value Of Water As An Urban Club Good: A Matching Approach To Hoa-Provided Lakes," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103781, Agricultural and Applied Economics Association.
    19. Jasmin Kantarevic & Boris Kralj, 2013. "Link Between Pay For Performance Incentives And Physician Payment Mechanisms: Evidence From The Diabetes Management Incentive In Ontario," Health Economics, John Wiley & Sons, Ltd., vol. 22(12), pages 1417-1439, December.
    20. Heinrich, Carolyn J. & Mueser, Peter R. & Troske, Kenneth & Jeon, Kyung-Seong & Kahvecioglu, Daver C., 2009. "New Estimates of Public Employment and Training Program Net Impacts: A Nonexperimental Evaluation of the Workforce Investment Act Program," IZA Discussion Papers 4569, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Immigrants; Illegal immigration; Deportation; Subjective belief; Education;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:reveho:v:17:y:2019:i:1:d:10.1007_s11150-017-9361-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.