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Do E‐verify mandates improve labor market outcomes of low‐skilled native and legal immigrant workers?

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  • Sarah Bohn
  • Magnus Lofstrom
  • Steven Raphael

Abstract

We examine the impact of the 2007 Legal Arizona Workers Act (LAWA) on employment outcomes of low‐skilled legal workers. We use the synthetic control method to select a group of states against which the labor market trends of Arizona can be compared. Our results suggest that contrary to its intent, LAWA does not appear to have improved labor market outcomes of legal low‐skilled workers who compete with unauthorized immigrants, the target of the legislation. In fact, we find some evidence of diminished employment and increased unemployment among legal low‐skilled workers in Arizona. These findings are concentrated on the largest demographic group of workers—non‐Hispanic white men. While they are less likely to find employment, those who do have on average higher earnings as a result of LAWA. The pattern of results points to both labor supply and labor demand contractions due to LAWA, with labor supply dominating in terms of magnitude.

Suggested Citation

  • Sarah Bohn & Magnus Lofstrom & Steven Raphael, 2015. "Do E‐verify mandates improve labor market outcomes of low‐skilled native and legal immigrant workers?," Southern Economic Journal, John Wiley & Sons, vol. 81(4), pages 960-979, April.
    • Handle: RePEc:wly:soecon:v:81:y:2015:i:4:p:960-979
    DOI: 10.1002/soej.12019
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    References listed on IDEAS

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    1. Sarah Bohn & Magnus Lofstrom & Steven Raphael, 2014. "Did the 2007 Legal Arizona Workers Act Reduce the State's Unauthorized Immigrant Population?," The Review of Economics and Statistics, MIT Press, vol. 96(2), pages 258-269, May.
    2. Cynthia Bansak & Steven Raphael, 2001. "Immigration Reform and the Earnings of Latino Workers: Do Employer Sanctions Cause Discrimination?," ILR Review, Cornell University, ILR School, vol. 54(2), pages 275-295, January.
    3. Thomas C. Buchmueller & John DiNardo & Robert G. Valletta, 2011. "The Effect of an Employer Health Insurance Mandate on Health Insurance Coverage and the Demand for Labor: Evidence from Hawaii," American Economic Journal: Economic Policy, American Economic Association, vol. 3(4), pages 25-51, November.
    4. Michael Good, 2013. "Do immigrant outflows lead to native inflows? An empirical analysis of the migratory responses to US state immigration legislation," Applied Economics, Taylor & Francis Journals, vol. 45(30), pages 4275-4297, October.
    5. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
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    Cited by:

    1. Juan Manuel Pedroza, 2022. "Housing Instability in an Era of Mass Deportations," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 41(6), pages 2645-2681, December.

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