Is the GED an Effective Route to Postsecondary Education for School Dropouts?

We use data from the Texas Schools Microdata Panel (TSMP) to examine the extent to which dropouts use the GED as a route to post-secondary education. The paper develops a model pointing out the potential biases in estimating the effects of taking the “GED path” to postsecondary education. Lacking suitable instruments that would allow us to directly address potential biases, our approach is to base our estimates on a set of academically “at risk” students who are very similar in the 8th grade. We observe that the eventual high school graduates in this group have much better postsecondary education outcomes than do the similar at-risk 8th graders who dropped out and obtained a GED. Our model explains the observed differences, and allows for a discussion of the policy challenges inherent in improving the postsecondary outcomes of dropouts.GED, dropouts, post-secondary education

H-1Bs: How Do They Stack Up to US Born Workers?

Combining unique individual level H-1B data from U.S. Citizenship and Immigration Services (USCIS) and data from the 2009 American Community Survey, we analyze earnings differences between H-1B visa holders and US born workers in STEM occupations. The data indicate that H-1Bs are younger and more skilled, as measured by education, than US born workers in the same occupations. We fail to find support for the notion that H-1Bs are paid less that observationally similar US born workers; in fact, they appear to have higher earnings in some key STEM occupations, including information technology.temporary workers, H-1B, immigration, high-skill, STEM

Low-Skilled Immigrant Entrepreneurship

More than half of the foreign born workforce in the U.S. have no schooling beyond high school and about 20 percent of the low-skilled workforce are immigrants. More than 10 percent of these low-skilled immigrants are self-employed. Utilizing longitudinal data from the 1996, 2001 and 2004 Survey of Income and Program Participation panels, this paper analyzes the returns to self-employment among low-skilled immigrants. We compare annual earnings and earnings growth of immigrant entrepreneurs to immigrants in wage/salary employment as well as native born business owners. We find that the returns to low-skilled self-employment among immigrants is higher than it is among natives but also that wage/salary employment is a more financially rewarding option for most low-skilled immigrants. An exception is immigrant men, who are found to have higher earnings growth than immigrants in wage/salary employment and are predicted to reach earnings parity after approximately 10 years in business. We also find that most of the 20 percent male native-immigrant earnings gap among low-skilled business owners can be explained primarily by differences in the ethnic composition. Low-skilled female foreign born entrepreneurs are found to have earnings roughly equal to those of self-employed native born women.immigrants, low-skill, earnings, self-employment, entrepreneurship

Did the 2007 Legal Arizona Workers Act Reduce the State's Unauthorized Immigrant Population?

We test for an effect of Arizona’s 2007 Legal Arizona Workers Act (LAWA) on the proportion of the state population characterized as foreign-born, as non-citizen, and as non-citizen Hispanic. We use the synthetic control method to select a group of states against which the population trends of Arizona can be compared. We document a notable and statistically significant reduction in the proportion of the Arizona population that is foreign-born and in particular, that is Hispanic noncitizen. The decline observed for Arizona matches the timing of LAWA's implementation, deviates from the time series for the chosen synthetic control group, and stands out relative to the distribution of placebo estimates for the remainder of states in the nation. Furthermore, we do not observe similar declines for Hispanic naturalized citizens, a group not targeted by the legislation. Our results on LAWA's impact on the housing market provide further support for our findings.illegal, unauthorized, undocumented, immigration, Hispanic, Arizona

Immigrant Legalization: Assessing the Labor Market Effects

Assesses the effects of a legalization program for unauthorized immigrants on the labor market, tax revenues, and public assistance programs. Estimates immigrants' economic mobility by visa status and skill level as well as eligibility for benefits

Why are Hispanic and African-American dropout rates so high?

The proportion of students who do not graduate from high school is dramatically higher among the two largest minority groups, Hispanics and African-Americans, compared to non-Hispanic whites. In this paper we utilize unique student-level data from the Texas Schools Microdata Panel (TSMP) in an attempt to determine what factors contribute to the higher minority dropout rates. We show that poverty is a key contributor. Lack of English proficiency among Hispanic student is linked to the higher Hispanic dropout probability. Our results also suggest that neighborhood characteristics may be important in explaining the high African-American dropout rates. We also address the issue of the surprisingly low official dropout rates reported by the Texas Education Agency (TEA) and show that the GED program explains some of the discrepancy

Did Employer Sanctions Lose Their Bite? Labor Market Effects of Immigrant Legalization

Taking advantage of the ability to identify immigrants who were unauthorized to work prior to obtaining Legal Permanent Resident status, we use the New Immigrant Survey to examine whether lacking legal status to work in the U.S. constrains employment outcomes of illegal immigrants. With the exception of high-skilled unauthorized immigrants, the data fail to reveal evidence of improved employment outcomes attributable to legal status. In light of evidence that unauthorized immigrants experienced increased wages as a result of receiving amnesty through the 1986 Immigration and Reform Control Act during the 1990s, we interpret the results as evidence of ineffective employer sanctions.unauthorized, illegal, undocumented, immigration, legalization, amnesty

Transitions to Entrepreneurship and Industry-Specific Barriers

Drivers of entrepreneurial entry are investigated in this study by examining how entry into small-business ownership is shaped by industry-specific constraints. The human- and financial-capital endowments of potential entrepreneurs entering firms in various industries are shown to differ profoundly, depending on the type of venture entered. The educational credentials of highly educated potential entrepreneurs, in particular, predict avoidance of small-firm ownership in some industries as well as attraction to others. Recognizing that individuals choose an industry sector jointly with their decision to enter entrepreneurship, we find that the conventional practice of conflating different industry types in empirical analyses of transitions to entrepreneurship generates misleading findings about the determinants of entrepreneurship.entrepreneurship, self-employment, capital constraints, transitions, entry barriers, business start-ups

Incarceration and Crime: Evidence from California's Public Safety Realignment Reform

We evaluate the effect of perhaps the largest exogenous decline in a state's incarceration rate in U.S. history on local crime rates. We assess the effects of a recent reform in California that caused a sharp and permanent reduction in the state's incarceration rate. We exploit the large variation across California counties in the effect of this reform on county-specific prison incarceration rates. We find very little evidence of an effect of the large reduction in incarceration rates on violent crime and evidence of modest effects on property crime, auto theft in particular. These effects are considerably smaller than existing estimates in the literature based on panel data for periods of time when the U.S. incarceration rate was considerably lower. We corroborate theses cross-county results with a synthetic-cohort analysis of state crime rates in California. This state-wide analysis confirms our findings from the county-level analysis. In conjunction with existing published research, the results from this study support the hypothesis of a crime-prison effect that diminishes with the scale of incarceration