The Labor Market Effects of Immigration Enforcement

We examine the labor market effects of Secure Communities (SC), a police-based immigration enforcement policy implemented in 2008-13. Using variation in implementation across local areas and over time, we find that SC decreased the employment of likely undocumented immigrants. These effects are driven not only by deportations but also by adjustments among immigrants who remain in the United States. Importantly, SC also decreased the employment and hourly wages of US-born individuals. We provide support for two mechanisms that could explain this decline in labor demand: an increase in labor costs that decreases job creation and a reduction in local consumption.