Abstract
Executive Summary
Assessing the impact of policies offering in-state tuition and financial aid to undocumented immigrant youth is highly pertinent from a policy perspective. Eligible immigrants arrived as children and the United States is often the only home they have ever known. Without the right to stay or a path to citizenship, they cannot achieve their full potential as productive members of society. Policies improving access to higher education have the potential to elevate their social mobility and amplify economic contributions by improving job prospects and bolstering tax revenues. Since 2001, roughly half of the U.S. states have expanded in-state college tuition benefits to undocumented immigrants. Around one-third of states have also provided financial aid; yet approximately one-tenth have imposed heightened barriers to accessing higher education. While early studies found an increase in enrollment in states with in-state tuition policies, recent studies accounting for additional state policies found no impact on enrollment. These results mask varying impacts based on gender and marital status. We assess these policies, control for Deferred Action for Childhood Arrivals (DACA), and analyze the impact of in-state tuition on college enrollment, graduation rates, employment, and self-employment. Our analysis relies on data from the 2005 to 2019 American Community Survey. To identify individuals who are the most likely to be undocumented and affected by the policy, we focus on noncitizen Hispanic youth, excluding those likely authorized (e.g., licensed professionals, veterans, and refugees). That said, we are assuming that state policies are the same for all undocumented residents, not just the Hispanics in our sample. Our findings are as follows:
- In our sample, there are 17,649 likely undocumented Hispanic men (14,249 women) aged 18–22 years who completed high school and arrived in the U.S. prior to age 16 years. Approximately 75 percent of them are Mexican.
- The data reveals that approximately 30 percent of men are enrolled in college. Access to in-state tuition boosts enrollment by 7.2 percentage points for Hispanic men and by 13.2 percentage points for Mexican men. This response is driven by married men. Men in general do not graduate at higher rates.
- Women enroll in college at the same rate across states. However, access to lower tuition raises graduation rates by 4.7 percentage points, representing nearly a 30 percent increase compared to the average graduation rate of 15.7 percent, particularly among single women.
- Among men with access to in-state tuition, single men are more likely to be self-employed, while married men respond to the policy by working less, consistent with higher enrollment rates.
- On average 55 percent of single women are employed. Access to in-state tuition increases employment by 12–19.8 percentage points for single women. We find no significant impact of the policy on the employment of married women.
Our research indicates that while in-state tuition policies do make a difference, there is a need for a more nuanced policy approach, particularly due to gender disparities among the intended beneficiaries, which have previously been overlooked. However, we argue that relying solely on in-state tuition policies is insufficient. Single women are driven by these policies to complete their degrees and pursue employment. If policymakers aim for a broader impact and seek to include a more diverse group of undocumented youth, including men, they should consider enhancing opportunities within formal labor markets after college graduation. In support of this argument, we document higher graduation and employment rates and lower self-employment rates among DACA-eligible youth who have legal access to formal employment.
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