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Immigration Enforcement and Experimental Studies

Paper Session

Friday, Jan. 3, 2025 12:30 PM - 2:15 PM (PST)

Hilton San Francisco Union Square
Hosted By: National Economic Association & American Society of Hispanic Economists
  • Chair: Salvador Contreras, University of Texas-Rio Grande Valley

Beyond the Text: Understanding Opt-Out, Dosage, and Response Disparities in an SMS Intervention

Kalena Cortes
,
Texas A&M University

Abstract

Texts4Teens is an intervention designed to boost parental engagement in their child’s middle
school education through text messages. Conducted over multiple school years across eight
different Texas districts, parents were randomized into a treatment group, receiving three weekly
texts with engagement tips, and a control group receiving bi-weekly messages unrelated to
engagement. This study explores variations in intervention opt-out rates, dosage, and response
rates, particularly focusing on how sociodemographic characteristics influence engagement with
the intervention. Our analysis relies on both administrative records as well as text response data. We use ChatGPT to help analyze common themes found within the text message curriculum, to
see if those themes might also influence opt-out behaviors. The findings reveal that parents in the treatment group were more likely to opt out, while non-White, Spanish-speaking, and low-
income parents opted out less frequently and engaged differently with the content. These results
highlight the complex dynamics of text-based nudge interventions and emphasize the importance
of considering sociodemographic factors in designing and evaluating such programs.

Fintech, Financial Inclusion, and Visual Attention: A Field Experiment on Migrant Remittances

Angelino Viceisza
,
Spelman College and NBER
Eduardo Nakasone
,
Michigan State University
M ́aximo Torero
,
Food and Agriculture Organization

Abstract

Migrant remittances to low- and middle-income countries were close to 650 billion US dollars in 2022, impacting about one billion people worldwide. Despite this, sending remittances remains relatively costly. Policymakers have argued that fintech, specifically, comparison websites like kayak.com but for sending money, can boost financial inclusion and reduce remittance prices. Yet, little is known about how a key segment of consumers – migrants with limited (financial) education and trust in digital financial services – interacts with fintech. We collaborate with a World Bank certified comparison website to conduct a field experiment among Central American migrants. We vary remittance-company attributes shown to migrants on a comparison website, specifically, the time to delivery and customer reviews, to assess the potential for fintech to impact remittance choices. We use visual attention data to account for the information-processing mechanisms that lead to such choices. First, migrants are more likely to “experiment” with companies when shown prior customer reviews versus delivery speed. Second, they respond to information as expected, for example, by choosing companies that have better reviews and faster speed. Third, we cannot rule out that this experimentation is welfare-reducing. Those with a preference for lower fees (faster companies) end up choosing pricier (slower) companies when shown additional information (delivery speed or customer reviews). Finally, these effects are more pronounced for migrants with low financial literacy and no prior awareness of fintech. The findings paint a somewhat nuanced picture of the potential for fintech to improve financial inclusion and consumer welfare among this demographic.

Effects of Immigration Enforcement on Mobility and Avoidance Behavior: Evidence from 287(g) Agreements

Kendall Kennedy
,
Mississippi State University
Heriberto Gonzalez Lozano
,
Mississippi State University
Sandra Orozco-Aleman
,
Mississippi State University

Abstract

Over the last fifteen years, the United States has substantially increased interior
immigration enforcement, aiming to decrease undocumented immigration. This study asks how
increased interior immigration enforcement affects the mobility of Hispanic people, as increased
enforcement may cause Hispanics to attempt to avoid interaction with law enforcement. We
focus on 287(g) agreements, which deputize members of local law enforcement agencies to act
as immigration agents under certain circumstances, such as detainment, arrest, or until 2012, any
regular interaction with noncitizens. 287(g) agreements have previously been shown to cause
immigrants to relocate within the United States (Watson 2013), to reduce Medicaid participation
even for US citizen children (Watson 2014), and to increase school absenteeism and withdrawal
(Meadows 2023). However, relatively little is known about how interior immigration enforcement affects the daily economic activity of the Hispanic population, including non-immigrant US citizens, permanent residents, documented immigrants, and undocumented immigrants. This question is notably difficult to answer; data where direct observation of economic activity and mobility often do not also observe ethnicity, and never report the documented status of immigrants. Even with a direct survey of these measures, increased immigration enforcement reduces social trust among immigrant communities, which would create non-classical measurement error and raise non-
response rates. To circumvent these issues, we look at traffic fatalities in the Fatality Analysis Reporting System (FARS) dataset. In these data, we can observe Hispanic ethnicity, some detail of place of origin (Mexican, Central/South American, Puerto Rican, and Cuban), and driver’s license status (a proxy for documented status in much of the US) for the universe of fatal traffic accidents in the United States from 2005-2020.

Labor Market Shocks and Anti Immigration Sentiment: Evidence from the Great Recession and 287g

Sergio Barrera
,
Virginia Tech

Abstract

Does increased labor market scarcity lead to more local anti-immigration enforcement? We answer this question by evaluating the impact of three national economic shocks on the likelihood that a county sheriff forms a partnership with US Immigration and Customs Enforcement (ICE) in the form of 287(g) contracts. Looking at the universe of signed county-level agreements between 2002 and 2020, we separately use a long-difference, instrumental variables approach and a difference-in-differences design to evaluate the effects of the rise of automation, import competition from China, and the Great Recession. We find that effects of economic shocks on immigration policy depends on their nature. While increased exposure to the rise in automation and import competition did not lead to differential adoption of a 287(g), commuting zones severely impacted by the Great Recession saw large increases. A possible mechanism to explain the differing results is the differential migration response of foreign-born individuals. The results of this paper highlight that general economic anxiety can lead to the enactment of anti-immigration policy; therefore, it is an important channel to consider when discussing the forces that drive sentiment towards immigrants.

Debt and Displacement: Tracing the Impact of the Latin American Debt Crisis on Migration and Racial Disparities in the USA

Jorge N. Zumaeta
,
Florida International University

Abstract

This paper examines the profound impact of the Latin American international debt crisis of the 1980s on the region's economic landscape and its subsequent influence on migration patterns to the United States, with a special focus on racial and ethnic disparities. By integrating econometric models and historical analysis, this study identifies the causal mechanisms through which loan terms and practices, and economic policies—austerity packages—affected the economic stability of LATAM nations impacting different racial and ethnic groups disproportionately (Aremu, 2018). The analysis extends to evaluate how these economic hardships catalyzed migration flows, particularly among marginalized communities seeking better economic opportunities (Pagnotta, 2014). We evaluate the roles of various institutions, from local governments to international bodies, in managing or exacerbating the crisis and its racially disparate impacts (Roett, 1985). Furthermore, the paper discusses the broader macroeconomic policies and their implementation, which often neglected the nuanced ethnic and racial complexities of LATAM. The findings underscore the importance of considering racial and ethnic implications in economic policymaking and provide insights into addressing current migration issues and racial inequalities in economic development. In the context of globalization, as Stiglitz (2002) argues, the integration into global markets has brought significant challenges, particularly evident in the migration dynamics from LATAM (Stiglitz, 2002). Additional studies also highlight the complex interplay between globalization, economic policies, and migration patterns, showing a significant impact on family remittances and socioeconomic structures in Latin America (Orozco, 2002), (Kudeyarova, 2020).

Discussant(s)
Randall Akee
,
University of California-Los Angeles
Colin Cannonier
,
Belmont University
Alberto Ortega
,
Indiana University
Stephan Lefebvre
,
Bucknell University
Fernando Lozano
,
Pomona College
JEL Classifications
  • J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers
  • I3 - Welfare, Well-Being, and Poverty