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This paper studies human capital responses to the availability of the Deferred Action for Childhood Arrivals (DACA) program, which provides temporary work authorization and deferral from deportation for undocumented, high-school-educated youth. We use a sample of young adults that migrated to the U.S. as children to implement a difference-in-differences design that compares non-citizen immigrants ("eligible") to citizen immigrants ("ineligible") over time. We find that DACA significantly increased high school attendance and high school graduation rates, reducing the citizen-noncitizen gap in graduation by 40%. We also find positive, though imprecise, impacts on college attendance.

Do Human Capital Decisions Respond to the Returns to Education? Evidence from DACA