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Employer sanctions, and the welfare of native workers


  • Stark, Oded
  • Jakubek, Marcin


In response to the imposition of steep enough sanctions for employing illegal migrants, the firm reassigns managers from supervision of production to verification of the legality of its workforce. This impedes production efficiency, reduces wages, and hurts the native workers.

Suggested Citation

  • Stark, Oded & Jakubek, Marcin, 2012. "Employer sanctions, and the welfare of native workers," Economics Letters, Elsevier, vol. 117(3), pages 533-536.
  • Handle: RePEc:eee:ecolet:v:117:y:2012:i:3:p:533-536 DOI: 10.1016/j.econlet.2012.06.008

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    References listed on IDEAS

    1. 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.
    2. 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 472-498, July.
    3. 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.
    4. B. Lowell & Jay Teachman & Zhongren Jing, 1995. "Unintended consequences of Immigration Reform: Discrimination and hispanic employment," Demography, Springer;Population Association of America (PAA), vol. 32(4), pages 617-628, November.
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    Cited by:

    1. Pia Orrenius, 2013. "How Do Tougher Immigration Measures Affect Unauthorized Immigrants?: Comment," Demography, Springer;Population Association of America (PAA), vol. 50(3), pages 1101-1103, June.
    2. 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, Southern Economic Association, vol. 81(4), pages 960-979, April.
    3. Orrenius, Pia M. & Zavodny, Madeline, 2014. "How Do E-Verify Mandates Affect Unauthorized Immigrant Workers?," IZA Discussion Papers 7992, Institute for the Study of Labor (IZA).

    More about this item


    Employer sanctions; Illegal migrant workers; Natives’ welfare; The formation of public policy;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, 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, Vacancies, and Immigrant Workers - - - 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


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