Temporary Status, Uneven Gains: Labor Market Effects of TPS on Central American Immigrants Público
Aguado, Isabella (Spring 2025)
Abstract
This paper investigates the labor market effects of Temporary Protected Status (TPS) on eligible immigrants from designated countries. Focusing on immigrants from Honduras, Nicaragua, and El Salvador, I assess the impact of TPS on several labor outcomes: pre-tax personal income, annual wages, weekly hours worked, labor force participation, and employment status. Using data from the American Community Survey and a Difference-in-Differences (DiD) framework, I compare TPS-eligible individuals to similarly undocumented likely immigrants from the same country of origin who arrived after the eligibility cutoff, as well as to a control group of Mexican immigrants. My analysis isolates the effect of TPS as a form of temporary legalization and reveals that its labor market benefits are not uniform. In particular, I find that the impact of the policy varies by country, gender, and educational attainment. These findings suggest that liminal legality, while offering some economic stability, interacts with existing social and institutional inequalities, limiting the extent of TPS’s labor-enhancing potential across subgroups.
Table of Contents
1. Introduction
1.1 Background of Temporary Protected Status (TPS)
1.2 Amnesty and Legalization Programs
1.3 The Unique Nature of TPS
1.4 Research Problem and Core Question
1.5 The Study’s Unique Contribution
2. Method
2.1 Data and Sample
2.2 Methodology
2.2.1 Regression Equation
2.2.2 Key Assumptions
2.3 Robustness Checks
3. Results
3.1 General Sample Results
3.2 Gender Subsets Results
3.3 Results Discussion
3.4 Empirical Concerns
4. Conclusion
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