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We take advantage of provisions of the Immigration Reform and Control Act of 1986 (IRCA), which granted legal resident status to long-time unauthorized residents but created new obstacles to employment for more recent immigrants, to explore how employment opportunities affect criminal behavior. Exploiting administrative data on the criminal justice involvement of individuals in San Antonio, Texas and using a triple-differences strategy, we find evidence of an increase in felony charges filed against residents most likely to be affected by IRCA’s employment regulations. Our results suggest a strong relationship between access to legal jobs and criminal behavior.

Online appendix for "Immigration, Employment Opportunities, and Criminal Behavior" (with Emily Owens and Sarah Bohn).

Click here for the paper.

Changes in the treatment of individuals by the criminal justice system following a policy intervention may bias estimates of the effects of the intervention on underlying criminal activity. We explore the importance of such changes in the context of the Immigration Reform and Control Act of 1986 (IRCA). Using administrative data from San Antonio, Texas, we examine variation across neighborhoods and ethnicities in police arrests and in the rate at which those arrests are prosecuted. We find that changes in police behavior around IRCA confound estimates of the effects of the policy and its restrictions on employment on criminal activity.