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The Labor Market Impact of Mandated Employment Verification Systems

Author

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  • Catalina Amuedo-Dorantes
  • Cynthia Bansak

Abstract

Employment verification systems covered about one out of four people hired in the United States in 2010. In this paper, we evaluate the impact of state-level employment verification mandates on the employment and wages of likely unauthorized workers across the entire United States between 2004 and 2010. We find that E-Verify mandates, particularly those covering all employers, significantly curtail the employment likelihood of likely unauthorized male and female workers. However, they appear to have mixed effects on wages and may redistribute likely unauthorized labor towards industries often benefiting from specific exclusions, such as agriculture or food services.

Suggested Citation

  • Catalina Amuedo-Dorantes & Cynthia Bansak, 2012. "The Labor Market Impact of Mandated Employment Verification Systems," American Economic Review, American Economic Association, vol. 102(3), pages 543-548, May.
  • Handle: RePEc:aea:aecrev:v:102:y:2012:i:3:p:543-48
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.102.3.543
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    References listed on IDEAS

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    1. Michael Hout & Harvey Rosen, 2000. "Self-Employment, Family Background, and Race," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 670-692.
    2. Andrew M. Yuengert, 1995. "Testing Hypotheses of Immigrant Self-Employment," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 194-204.
    3. Robert W. Fairlie & Bruce D. Meyer, 1996. "Ethnic and Racial Self-Employment Differences and Possible Explanations," Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 757-793.
    4. Fairlie, Robert W, 1999. "The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 80-108, January.
    5. Mats Hammarstedt & Ghazi Shukur, 2009. "Testing the home-country self-employment hypothesis on immigrants in Sweden," Applied Economics Letters, Taylor & Francis Journals, vol. 16(7), pages 745-748.
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    Cited by:

    1. Catalina Amuedo-Dorantes & Cynthia Bansak, 2014. "Employment Verification Mandates And The Labor Market Outcomes Of Likely Unauthorized And Native Workers," Contemporary Economic Policy, Western Economic Association International, vol. 32(3), pages 671-680, July.
    2. Bandyopadhyay, Subhayu & Pinto, Santiago M., 2017. "Unauthorized immigration and fiscal competition," European Economic Review, Elsevier, vol. 92(C), pages 283-305.
    3. repec:spr:demogr:v:54:y:2017:i:6:d:10.1007_s13524-017-0627-6 is not listed on IDEAS
    4. Borjas, George J., 2017. "The Earnings of Undocumented Immigrants," Working Paper Series rwp17-013, Harvard University, John F. Kennedy School of Government.
    5. Catalina Amuedo-Dorantes & Xing Jin & Susan Pozo, "undated". "Does E-Verify Discriminate against Hispanic Citizens?," Economics Working Papers 07-05/2015, School of Business Administration, American University of Sharjah.
    6. Catalina Amuedo-Dorantes & Thitima Puttitanun, 2014. "Remittances and immigration enforcement," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-26, December.

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