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Did 9/11 worsen the job prospects of Hispanic immigrants?

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Abstract

This paper examines whether the economic aftermath of 9/11 had an adverse impact on the labor market outcomes of male immigrants from Latin America, who compose the bulk of undocumented foreign-born workers in the U.S. The crackdown on use of fraudulent Social Security numbers, increased requirements for government-issued identification, and other changes associated with greater focus on national security likely lowered the demand for foreign-born workers - particularly the undocumented - relative to natives after 9/11. The relative decline in demand for such workers could have negatively affected employment, hours worked, and earnings. Using Current Population Survey data and a difference-in-difference estimation technique, we find a negative impact after 9/11 on earnings and hours worked among recent male Hispanic immigrants vis--vis natives and a negative effect on employment, hours worked, and earnings vis--vis Hispanic immigrants who had been in the U.S. longer.

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  • Pia M. Orrenius & Madeline Zavodny, 2005. "Did 9/11 worsen the job prospects of Hispanic immigrants?," Working Papers 0508, Federal Reserve Bank of Dallas.
  • Handle: RePEc:fip:feddwp:05-08
    Note: Published as: Orrenius, Pia M. and Madeline Zavodny (2009), "The Effects of Tougher Enforcement on the Job Prospects of Recent Latin American Immigrants," Journal of Policy Analysis and Management 28 (2): 239-257.
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    1. Erica L. Groshen & Simon M. Potter, 2003. "Has structural change contributed to a jobless recovery?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 9(Aug).
    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. Orrenius, Pia M. & Zavodny, Madeline, 2005. "Self-selection among undocumented immigrants from Mexico," Journal of Development Economics, Elsevier, vol. 78(1), pages 215-240, October.
    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. Simone Schüller, 2016. "The Effects of 9/11 on Attitudes toward Immigration and the Moderating Role of Education," Kyklos, Wiley Blackwell, vol. 69(4), pages 604-632, November.
    2. Nils Braakmann, 2007. "Islamistic Terror, the War on Iraq and the Job Prospects of Arab Men in Britain: Does a Country’s Direct Involvement Matter? This paper examines whether the labor market prospects of Arab men in Engla," Working Paper Series in Economics 70, University of Lüneburg, Institute of Economics.
    3. Roberto Pedace & Christine DuBois, 2012. "Immigration policy and employment assimilation in the United States," Applied Economics, Taylor & Francis Journals, vol. 44(36), pages 4721-4730, December.
    4. Cornelissen, Thomas & Jirjahn, Uwe, 2012. "September 11th and the earnings of Muslims in Germany—The moderating role of education and firm size," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 490-504.

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