Employer sanctions, and the welfare of native workers
AbstractWe investigate the impact of the imposition of sanctions for employing illegal migrants on the welfare of native workers. Our analysis is based on the premise that in response to such sanctions, managers in a firm may be reassigned from supervision of production to verification of the legality of the firm's workforce. When there is full employment in the host country, a profit-maximizing firm will assign managers to verification if the sanctions are steep enough. This reassignment impedes production efficiency and, consequently, leads to a reduction in the wages of both illegal migrants and native workers, inevitably hurting the latter, who are the intended beneficiaries of the sanctions. --
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Bibliographic InfoPaper provided by University of Tuebingen, Faculty of Economics and Social Sciences in its series University of Tuebingen Working Papers in Economics and Finance with number 38.
Date of creation: 2012
Date of revision:
Employer sanctions; Illegal migrant workers; Natives' welfare; The formation of public policy;
Other versions of this item:
- Stark, Oded & Jakubek, Marcin, 2012. "Employer sanctions, and the welfare of native workers," Economics Letters, Elsevier, vol. 117(3), pages 533-536.
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
- K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-08 (All new papers)
- NEP-HRM-2012-07-08 (Human Capital & Human Resource Management)
- NEP-MIG-2012-07-08 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hill, John K & Pearce, James E, 1990. "The Incidence of Sanctions against Employers of Illegal Aliens," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 28-44, February.
- Cobb-Clark, Deborah A & Shiells, Clinton R & Lowell, B Lindsay, 1995. "Immigration Reform: The Effects of Employer Sanctions and Legalization on Wages," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 472-98, July.
- Cynthia Bansak, 2005. "The Differential Wage Impact of the Immigration Reform and Control Act on Latino Ethnic Subgroups," Social Science Quarterly, Southwestern Social Science Association, vol. 86(s1), pages 1279-1298.
- B. Lowell & Jay Teachman & Zhongren Jing, 1995. "Unintended consequences of Immigration Reform: Discrimination and hispanic employment," Demography, Springer, vol. 32(4), pages 617-628, November.
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