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The proportion of students who do not graduate from high school is dramatically higher among the two largest minority groups, Hispanics and African-Americans, compared to non-Hispanic whites. In this paper we utilize unique student-level data from the Texas Schools Microdata Panel (TSMP) in an attempt to determine what factors contribute to the higher minority dropout rates. We show that poverty is a key contributor. Lack of English proficiency among Hispanic student is linked to the higher Hispanic dropout probability. Our results also suggest that neighborhood characteristics may be important in explaining the high African-American dropout rates. We also address the issue of the surprisingly low official dropout rates reported by the Texas Education Agency (TEA) and show that the GED program explains some of the discrepancy. -- Dropout rate ; educational attainment

Recent reforms in California caused a sharp and permanent reduction in the state's incarceration rate. We evaluate the effects of that incarceration decline on local crime rates. Our analysis exploits the large variation across California counties in the effect of this reform on county-specific prison incarceration rates. We find very little evidence that the large reduction in California incarceration had an effect on violent crime, and modest evidence of effects on property crime, auto theft in particular. These effects are considerably smaller than existing estimates based on panel data for periods of time when the U.S. incarceration rate was considerably lower. We corroborate these cross-county results with a synthetic-cohort analysis of state crime rates in California. The statewide analysis confirms our findings from the county-level analysis. In line with with previous research, the results from this study support the hypothesis of a crime-prison effect that diminishes with increased reliance on incarceration.

We analyze the impact of the 2007 Legal Arizona Workers Act (LAWA) on employment outcomes of low-skilled Arizona workers, with a focus on the states' unauthorized population. The intent of LAWA was to limit unauthorized workers' economic opportunities as a way to deter further illegal immigration and as such is likely to increase poverty among an already marginalized population. Specifically, we assess whether the legislation reduced the formal employment opportunities of the targeted population. We also look for evidence of an unintended consequence of the policy: whether LAWA pushed workers into informal employment, and if so what are the likely consequences for these workers and their families. Using the synthetic control method developed by Abadie, Diamond and Hainmueller (2010), we find no statistically significant pre-post LAWA differences in wage and salary employment rate for the vast majority of workers in Arizona. Only among the workers most likely to be unauthorized - non-citizen Hispanic men with at most a high school education - do we observe a statistically significant relative decline in the probability of wage and salary employment. We also identify a substantial and statistically significant relative increase in the rate of self-employment among the same group of likely unauthorized workers, and not among other groups. Our data suggests that this shift is likely associated with an increase in poverty among unauthorized immigrants.

This article examines causes of the low self-employment rates among Mexican-Hispanics by studying self-employment entry using the 1996 panel of the Survey of Income and Program Participation (SIPP). The data show that Mexican-Hispanics are less likely to be self-employed or enter self-employment, relative to non-Hispanic whites. The authors analyze self-employment by recognizing heterogeneity in business ownership across industries and show that a classification of firms by human and financial capital "intensiveness," or entry barriers, is effective in explaining differences in entrepreneurship across ethnic groups. The authors show that the lower self-employment entry rates among Mexican-Hispanics are due to lower entry rates into business ownership of firms in relatively high-barrier industries. In fact, Hispanics are more likely to start up a business in a low-barrier industry than whites.

This article examines causes of the low self-employment rates among Mexican-Hispanics by studying self-employment entry using the 1996 panel of the Survey of Income & Program Participation (SIPP). The data show that Mexican-Hispanics are less likely to be self-employed or enter self-employment, relative to non-Hispanic whites. The authors analyze self-employment by recognizing heterogeneity in business ownership across industries & show that a classification of firms by human & financial capital "intensiveness," or entry barriers, is effective in explaining differences in entrepreneurship across ethnic groups. The authors show that the lower self-employment entry rates among Mexican-Hispanics are due to lower entry rates into business ownership of firms in relatively high-barrier industries. In fact, Hispanics arc more likely to start up a business in a low-barrier industry than whites. Tables, References. [Reprinted by permission of Sage Publications Inc., copyright 2007 The American Academy of Political and Social Science.]