We examine the labor market effects of Secure Communities (SC), a police-based immigration enforcement policy implemented in 2008–13. Using variation in implementation across local areas and over time, we find that SC decreased the employment of likely undocumented immigrants. These effects are driven not only by deportations but also by adjustments among immigrants who remain in the United States. Importantly, SC also decreased the employment and hourly wages of US-born individuals. We provide support for two mechanisms that could explain this decline in labor demand: an increase in labor costs that decreases job creation and a reduction in local consumption.

Whereas attitudes toward risk play an important role in many decisions over the life course, factors that affect those attitudes are not fully understood. Using longitudinal survey data collected in Mexico before and during the Mexican war on drugs, we investigate how risk attitudes change with variation in insecurity and uncertainty brought on by unprecedented changes in local-area violent crime. Exploiting the fact that the timing, virulence, and spatial distribution of changes in violent crime were unanticipated, we establish there is a rise in risk aversion spread across the entire local population as local-area violent crime increases.