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DACA led to improved educational outcomes, lower teenage birthrate for young immigrant community

SMU professor available to discuss working paper’s analysis of controversial ‘dreamer’ population.

The Deferred Action for Childhood Arrivals program (DACA) increased high school graduation rates by 15 percent, reduced teenage birth rates by 45 percent, and led to a 25 percent increase in college enrollment among Hispanic women, according to a working paper co-authored by SMU economist Elira Kuka for the National Bureau of Economic Research.

The results have significant bearing for the direction of future immigration policy, the paper concludes.

“Our research shows that when we give undocumented youth a large incentive to invest in education, such as participation in DACA and access to the labor opportunities it opens if they stay in school, they respond to these opportunities,” says Kuka, an assistant professor in the SMU Department of Economics. “Giving immigrants a work permit and relief from deportation makes them more likely to invest in education, work more, and have less (teenage) fertility.”

The study also found that individuals who acquire more schooling work more at the same time, countering the typically held belief that work and school are mutually exclusive, and indicating DACA generated a large boost in productivity.

“You can think about our research in two ways: If you just care about immigration policy, it’s important because we show that DACA really improves these peoples’ lives and the type of immigrant workforce we have in the U.S., which is currently missing from the policy debate about the costs and benefits of the program,” Kuka says. “More generally, our research tells us something about the education choices of low-income Americans. Why don’t they invest in education despite its large wage premium? Do they not respond to incentives or do they lack the right incentives to go to school? Our results suggest the second.”

Co-authors are Na’ama Shenhav, an economics professor at Dartmouth College, and Kevin Shih, an economics professor at the Rensselaer Polytechnic Institute. The working paper, “Do Human Capital Decisions Respond to the Returns to Education? Evidence from DACA,” was released in February by the National Bureau of Economic Research.

“To complete this research, we used data from the American Community Surveys, which is a yearly survey that collects demographic, educational, and employment information for a 1 percent representative sample of the U.S. population,” Kuka explains. “We then identified who in the survey was likely to be a DACA recipient based on nation of origin, when they arrived in the country, and other factors, identified control groups that resembled the likely DACA recipients, then charted outcomes for both groups before and after DACA went into effect. We saw a divergence in trajectories where people eligible for DACA got this big bump in educational attainment, a big drop in fertility, and so on.” — Kenny Ryan, SMU

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Culture, Society & Family Economics & Statistics Learning & Education Researcher news SMU In The News

Inside Higher Ed: Study Finds Deferred Action for Childhood Arrivals Increased Educational Attainment

It also cut teen pregnancy.

Journalist Elizabeth Redden with the website Inside Higher Ed covered the research of SMU government policy expert Elira Kuka. Her working paper, “Do Human Capital Decisions Respond to the Returns to Education? Evidence from DACA,” was released in February by the National Bureau of Economic Research.

Kuka, an assistant professor in the SMU Department of Economics, and her colleagues found that the Deferred Action for Childhood Arrivals program under fire by the Trump Administration has significantly changed the lives of young people who came to the United States illegally as children.

Kuka’s research focus is on understanding how government policy effects individual behavior and well-being, the extent to which it provides social insurance during times of need, and its effectiveness in alleviation of poverty and inequality.

Her current research topics include the potential benefits of the Unemployment Insurance (UI) program, the protective power of the U.S. safety net during recessions and various issues in academic achievement.

Read the full story.

EXCERPT:

By Elizabeth Redden
Inside Higher Ed

A new working paper released by the National Bureau of Economic Research argues that the Deferred Action for Childhood Arrivals program had a “significant impact” on the educational and life decisions of undocumented immigrant youth, resulting in a 45 percent decrease in teen birth rates, a 15 percent increase in high school graduation rates and a 20 percent increase in college enrollment rates. The researchers found differential effects by gender, with most of the gains in college enrollment concentrated among women. For men alone, the effect of DACA on college enrollment was not statistically significant.

DACA, which was established by former president Obama in 2012, gave certain undocumented immigrant students who were brought to the U.S. illegally as children temporary protection from deportation and authorization to work in the U.S. DACA recipients have faced uncertainty over their future since September, when President Trump announced plans to end the program after six months.

“Our main conclusion from this paper is that future labor market opportunities or just opportunities in general really matter,” said Elira Kuka, one of the authors of the paper, titled “Do Human Capital Decisions Respond to the Returns to Education? Evidence From DACA,” and an assistant professor of economics at Southern Methodist University.

“People are worried, ‘Why are there some populations that are not going to high school and not investing in education?’” Kuka said. “Maybe the reason is they don’t see improved opportunities — but if they see improved labor outcomes they will actually invest in their education.”

Read the full story.

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Culture, Society & Family Economics & Statistics Learning & Education Researcher news SMU In The News

Market Watch: Why ‘Dreamers’ are less likely to drop out of high school

New study suggests DACA pushed students to stay in school.

Journalist Jillian Berman with the website Market Watch covered the research of SMU government policy expert Elira Kuka. Kuka’s working paper, “Do Human Capital Decisions Respond to the Returns to Education? Evidence from DACA,” was released in February by the National Bureau of Economic Research.

An assistant professor in the SMU Department of Economics, Kuka and her colleagues found that the Deferred Action for Childhood Arrivals program under fire by the Trump Administration has significantly changed the lives of young people who came to the United States illegally as children.

Kuka’s research focus is on understanding how government policy effects individual behavior and well-being, the extent to which it provides social insurance during times of need, and its effectiveness in alleviation of poverty and inequality.

Her current research topics include the potential benefits of the Unemployment Insurance (UI) program, the protective power of the U.S. safety net during recessions and various issues in academic achievement.

Read the full story.

EXCERPT:

By Jillian Berman
Market Watch

If students believe they’re education will pay off, they may be more likely to continue with it.

Enacting Deferred Action for Childhood Arrivals, or DACA, increased high school graduation rates among undocumented immigrants by 15% and college enrollment rates by 20%. That’s according to a study by economists at Dartmouth College, Southern Methodist University and Rensselaer Polytechnic Institute distributed by the National Bureau of Economic Research on Monday.

DACA provides work authorization and deferral of deportation for undocumented immigrants brought to the U.S. as children. In addition to eligibility requirements surrounding the age at which undocumented immigrants came to the U.S., DACA also has an education requirement — that immigrants be in school, completed high school or a GED program (unless they’re a veteran).

“You’ve given them a huge carrot to stay in school,” said Na’ama Shenhav, an economics professor at Dartmouth and one of the authors of the study. The opportunity for protection from deportation allows students to envision a possible return on their education that wasn’t available before. “For a population that previously was experiencing very low incentives to stay in school, this could have substantially re-oriented their perception of opportunities,” Shenhav said.

Read the full story.

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Culture, Society & Family Economics & Statistics Learning & Education Researcher news SMU In The News

Vox: DACA boosted immigrants’ education, labor force participation, productivity

It also cut teen pregnancy.

Journalist Matthew Yglesias with the website Vox covered the research of SMU government policy expert Elira Kuka. Her working paper, “Do Human Capital Decisions Respond to the Returns to Education? Evidence from DACA,” was released in February by the National Bureau of Economic Research.

Kuka, an assistant professor in the SMU Department of Economics, and her colleagues found that the Deferred Action for Childhood Arrivals program under fire by the Trump Administration has significantly changed the lives of young people who came to the United States illegally as children.

Kuka’s research focus is on understanding how government policy effects individual behavior and well-being, the extent to which it provides social insurance during times of need, and its effectiveness in alleviation of poverty and inequality.

Her current research topics include the potential benefits of the Unemployment Insurance (UI) program, the protective power of the U.S. safety net during recessions and various issues in academic achievement.

Read the full story.

EXCERPT:

By Matthew Yglesias
Vox

The Deferred Action for Childhood Arrivals program changed the lives of young people who came to the United States illegally as children in incredible ways — boosting high school graduation rates and college enrollment, while slashing teen births by a staggering 45 percent.

That’s according to timely new research from Elira Kuka, Na’ama Shenhav, and Kevin Shih that uses the program to study a larger question that’s of interest to economists — when education becomes more available, do people go get more of it? The DACA results suggest that the answer is yes, at least when there’s a clear upside. The program itself, in other words, was a smashing success in terms of bringing people out of the shadows and letting them contribute more to American society.

Oscar Hernandez, a DACA recipient, explained to Vox’s Dara Lind how things changed.

”The discussion in my house was, ‘You don’t get noticed. Because if you do something awesome and great, you might get noticed, and if you do get noticed, they might find out that we’re here undocumented, and if they find we out we could get separated.’ It was never a discussion we had, but that was the unwritten rule for our house. You don’t do bad things, but you also don’t do good things. You stay under the radar, you work, and that’s it.”

DACA changed that. Suddenly, recipients got to experience what US citizens take for granted — that to excel is good.

Canceling DACA almost certainly won’t reduce the overall size of the unauthorized population living in the United States, but it will meaningfully reduce the educational attainment and economic productivity of the undocumented population. That’s bad for the DREAMers, but also America as a whole.

DACA eligibility led to a lot more schooling
One of DACA’s provisions was that to qualify, you had to get a high school degree if you were old enough. That’s an unusual incentive to stay in school, and using a difference-in-differences design to compare the eligible to non-eligible population over time (you can do this because you had to have arrived within a specific time and age window to qualify) they show that DACA-eligibility increased high school graduation rates by 15 percent and brought teen births down by 45 percent.

Read the full story.

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Elira Kuka, SMU economics professor, appointed to prestigious national research organization

SMU economics professor wins prestigious appointment to nation’s premier organization for impartial economic research, the National Bureau of Economic Research.

The National Bureau of Economic Research, the nation’s leading nonprofit economic research organization, has appointed SMU Assistant Professor Elira Kuka a faculty research fellow.

Kuka is in the SMU Department of Economics. She will be a fellow in the NBER’s research program on children, a key policy area.

NBER, founded in 1920, is a private, non-profit, non-partisan organization dedicated to conducting economic research and to disseminating research findings among academics, public policy makers and business professionals.

The National Bureau of Economic Research (NBER) is the most prestigious and active research organization in economic policy and empirical analysis in the U.S., said University Distinguished Professor Santanu Roy, chair of the SMU Department of Economics. Several Nobel laureates and Chairs of the Council of Economic Advisers (to the White House) have been fellows of the NBER, Roy said.

“To be appointed a Faculty Research Fellow at the NBER is a tremendous recognition for a young scholar like Elira Kuka, who is just completing her second year as assistant professor after her Ph.D. It is a major boost to the SMU Economics Department’s research profile and visibility,” Roy said. “Elira’s work on several important public policy issues related to children’s health, unemployment insurance and education have started appearing in the very top journals of the profession. She is on a firm trajectory to be a star in her research field.”

NBER-affiliated researchers study a wide range of topics and they employ many different methods in their work. Key focus areas include developing new statistical measurements, estimating quantitative models of economic behavior and analyzing the effects of public policies while remaining impartial and foregoing recommendations.

Over the years the NBER’s research agenda has encompassed a wide variety of issues that confront our society. Twenty-six Nobel Prize winners in Economics and 13 past chairs of the President’s Council of Economic Advisers have held NBER affiliations.

The more than 1,400 professors of economics and business now teaching at colleges and universities in North America who are NBER researchers are the leading scholars in their fields.

Kuka joined SMU in 2015. She received an undergraduate degree from Wellesley College, Mass., and her Ph.D. in economics from the University of California at Davis. Her research focuses on understanding how government policy affects individual behavior and wellbeing, the extent to which it provides social insurance during times of need, and its effectiveness in alleviation of poverty and inequality.

Her current research topics include the potential benefits of the federal Unemployment Insurance program, the protective power of the U.S. safety net during recessions and various issues in academic achievement.

Kuka’s appointment was effective May 1, 2017.