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Immigration reform and the earnings of Latino workers: Do employer sanctions cause discrimination?

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  • Cynthia Bansak
  • Steven Raphael
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    Abstract

    Using the Current Population Surveys, the authors investigate whether employer sanctions for hiring undocumented workers introduced by the 1986 Immigration Reform and Control Act (IRCA) adversely affected the hourly earnings of Latino workers in the southwestern United States. The analysis exploits the fact that agricultural employers were exempt from the sanctions and employee-verification requirements for the first two years following IRCA's passage. The authors find substantial pre-post IRCA declines in the wages of Latino non-agricultural workers relative to Latinos in agriculture. They do not observe similar shifts in the relative wages among non-Latino white workers. When using non-Latino black and white non-agricultural workers as alternative control groups, they find that Latino wages declined relative to black wages but not relative to white wages. Finally, they find that the pre-post IRCA inter-sectoral and inter-ethnic relative wage declines for Latino non-agricultural workers do not reflect longer-term trends. (Author's abstract.)

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    Bibliographic Info

    Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

    Volume (Year): 54 (2001)
    Issue (Month): 2 (January)
    Pages: 275-295

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    Handle: RePEc:ilr:articl:v:54:y:2001:i:2:p:275-295

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    Cited by:
    1. Catalina Amuedo-Dorantes & Fernando Antonio Lozano, 2014. "On the Effectiveness of SB1070 in Arizona," CReAM Discussion Paper Series 1423, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    2. Amuedo-Dorantes, Catalina & Bansak, Cynthia, 2013. "Employment Verification Mandates and the Labor Market Outcomes of Likely Unauthorized and Native Workers," IZA Discussion Papers 7419, Institute for the Study of Labor (IZA).
    3. Gordon H. Hanson, 2006. "Illegal Migration from Mexico to the United States," NBER Working Papers 12141, National Bureau of Economic Research, Inc.
    4. Pia M. Orrenius & Madeline Zavodny, 2004. "What are the consequences of an amnesty for undocumented immigrants?," Working Paper 2004-10, Federal Reserve Bank of Atlanta.
    5. Sunding, David L. & Zwane, Alix Peterson, 2004. "Local Public Goods And Ethnic Diversity: Evidence From The Immigration Reform And Control Act," 2004 Annual meeting, August 1-4, Denver, CO 20356, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Amuedo-Dorantes, Catalina & Bansak, Cynthia, 2011. "The Impact of Amnesty on Labor Market Outcomes: A Panel Study Using the Legalized Population Survey," IZA Discussion Papers 5576, Institute for the Study of Labor (IZA).
    7. Partridge, Mark D. & Olfert, M. Rose & Ali, Kamar, 2009. "Towards a Rural Development Policy: Lessons from the United States and Canada," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(2).
    8. Catalina Amuedo-Dorantes & Cynthia Bansak, 2013. "Employment Verification Mandates and the Labor Market Outcomes of Likely Unauthorized and Native Workers," CReAM Discussion Paper Series 1312, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    9. Pia M. Orrenius & Madeline Zavodny, 2005. "Did 9/11 worsen the job prospects of Hispanic immigrants?," Working Papers 0508, Federal Reserve Bank of Dallas.
    10. Lofstrom, Magnus & Hill, Laura E. & Hayes, Joseph, 2010. "Did Employer Sanctions Lose Their Bite? Labor Market Effects of Immigrant Legalization," IZA Discussion Papers 4972, Institute for the Study of Labor (IZA).
    11. Pia M. Orrenius & Madeline Zavodny, 2001. "Do amnesty programs encourage illegal immigration? Evidence from the Immigration Reform and Control Act (IRCA)," Working Paper 2001-19, Federal Reserve Bank of Atlanta.

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