I examine the effects that the 1986 Immigration Reform and Control Act (IRCA), which legalized almost 3 million immigrants, had on crime in the United States. I exploit the IRCA's quasi-random timing as well as geographic variation in the intensity of treatment to isolate causal impacts. I find decreases in crime of 3-5 percent, primarily due to decline in property crimes, equivalent to 120,000-180,000 fewer violent and property crimes committed each year due to legalization. I calibrate a labor market model of crime, finding that much of the drop in crime can be explained by greater labor market opportunities among applicants.

We consider two classes of explanations for the rise in policy-related economic uncertainty in the United States since 1960. The first stresses growth in government spending, taxes, and regulation. A second stresses increased political polarization and its implications for the policymaking process and policy choices.