Abstract#
This paper examines the effects of interior immigration enforcement on local business dynamics. Exploiting the federally determined rollout of the Secure Communities (SC) program across U.S. counties, we use county-sector-year Census administrative data to show that enforcement reduces establishment entry and job creation, with no significant effect on exit or job destruction. We provide evidence consistent with a labor supply mechanism: SC activation reduces the immigrant population, raises wages, and generates larger effects in immigrant-intensive and high-turnover sectors. The decline in job creation is driven by continuing establishments adjusting along the intensive margin rather than exiting.
Suggested Citation#
Shrestha, Samyam and Pedro H. C. Sant’Anna. “Immigration Enforcement and Local Business Dynamics.” Working Paper, 2026.