May 2025

IZA DP No. 17914: DACA’s Uncertain Path: How Policy Threats Reshape Economic and Social Gains for Recipients

Catalina Amuedo-Dorantes, Chunbei Wang

Since 2012, DACA has provided deportation relief and work authorization to immigrants brought to the U.S. as children. This study examines how legal and political uncertainty, triggered by efforts to terminate the program in 2017, affected recipients’ economic and social outcomes. Using difference-in-differences and event study methods, we find that gains in education, health, and geographic mobility largely persisted, while employment and income benefits eroded, particularly in non-sanctuary and high-enforcement states. However, strong local DACA networks helped buffer these losses. The results underscore how policy instability can undermine progress in some areas while resilience emerges in others, especially within supportive local environments.