This study examines the impact of county-level immigration enforcement of section 287(g) mandates on the number of businesses in the United States. Using the difference-in-differences model, we find that the implementation of 287(g) negatively affected the total number of businesses. We find that counties with 287(g) agreements experienced a 6 percent decrease in the total number of businesses per 1000 county population and this negative effect appeared to be more prominent in businesses with a higher number of employees. Our findings shed light on the complex impacts of immigration policies on businesses, especially those reliant on immigrant labor.
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Shrestha et al. (2024) studied this question.
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