Legalize them?

Cool study forthcoming in AEJ Applied about how legal immigration status reduced recidivism of foreign prisoners in the EU. Here’s a link to an un-gated version of the paper.

Here’s the abstract:

We exploit exogenous variation in legal status following the Jan- uary 2007 European Union enlargement to estimate its effect on immigrant crime. We difference out unobserved time-varying fac- tors by i) comparing recidivism rates of immigrants from the “new” and “candidate” member countries; and ii) using arrest data on foreign detainees released upon a mass clemency that occurred in Italy in August 2006. The timing of the two events allows us to setup a difference-in-differences strategy. Legal status leads to a 50 percent reduction in recidivism, and explains one-half to two-thirds of the observed differences in crime rates between legal and illegal immigrants.

So the good news is that the identification scheme here is pretty darn good. The bad news is that to achieve this strong identification, the paper ends up studying a fairly small sample of foreign criminals:

We are left with 725 and 1,622 individuals in the treated and control groups, respectively.