Effects of the 1986 Immigration Reform and Control Act on Crime

Abstract

I examine the effects that the 1986 Immigration Reform and Control Act (IRCA), which legalized almost 3 million immigrants, had on crime in the United States. I exploit the IRCA's quasi-random timing as well as geographic variation in the intensity of treatment to isolate causal impacts. I find decreases in crime of 2%-6%, primarily due to decline in property crimes, equivalent to 80,000-240,000 fewer violent and property crimes committed each year due to legalization. I calibrate a labor market model of crime, finding that much of the drop in crime can be explained by greater labor market opportunities among applicants.