Immigration Enforcement, Labor Outcomes and Consumer Welfare: Evidence from U.S. Meat and Poultry Processing Plants

Abstract

Immigrant labor constitutes a substantial portion of the US meat and poultry processing workforce. However, the downstream effects of deportations targeting these immigrants on their food safety practices remain largely unexamined. We provide novel empirical evidence on the relationship between deportations, labor dynamics in the industry, and safety practices in the meat and poultry processing sector. We utilize a unique unbalanced panel dataset of monthly inspection reports from approximately 6,000 federally inspected meat and poultry processing establishments observed in any given year, and the number of deportations, and Google search intensity capturing the fear and awareness of immigration raids from 47 contiguous US states and the District of Columbia, between 2004 and 2019. We find that increased deportations are associated with decreased food safety quality and reduced consumer welfare, as evidenced by an increase in food safety inspection violations at these establishments. However, we find no consistent evidence of fear and awareness of immigration raids affecting food safety inspection violations. Furthermore, evidence suggests that deportations increase quarterly separations, hires, and employment levels of workers in the industry. Wages have also increased in a way that aligns with labor shortages after deportations, aimed at attracting workers and maintaining operations. By examining changes in the labor force and potential downstream food safety risks associated with deportations, this research contributes to the broader policy discussion about the spillover effects of immigration enforcement on consumer welfare.