IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/26676.html
   My bibliography  Save this paper

States Taking the Reins? Employment Verification Requirements and Local Labor Market Outcomes

Author

Listed:
  • Shalise Ayromloo
  • Benjamin Feigenberg
  • Darren Lubotsky

Abstract

We estimate the impact of state-level “E-Verify” legislation that mandates employment eligibility verification for private-sector workers. We document declines in formal sector employment and employment turnover after mandate passage, with effects concentrated among those likeliest to be work-ineligible. Using newly available data, we show that larger firms are far more likely to comply with mandates. Heterogeneity in adherence leads to substantial within-state employment spillovers from larger to smaller firms, as well as a reduction in the number of large firms. We find no evidence that work-ineligible populations relocate or that native-born workers’ labor market outcomes improve in response to mandates.

Suggested Citation

  • Shalise Ayromloo & Benjamin Feigenberg & Darren Lubotsky, 2020. "States Taking the Reins? Employment Verification Requirements and Local Labor Market Outcomes," NBER Working Papers 26676, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:26676
    Note: LS
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w26676.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Christian Gunadi, 2018. "Does stricter immigration policy affect college enrollment and public-private school choice of natives?," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-26, December.
    2. 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.
    3. Andri Chassambouli & Giovanni Peri, 2015. "The Labor Market Effects of Reducing the Number of Illegal Immigrants," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 18(4), pages 792-821, October.
    4. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 625-685, Elsevier.
    5. Michael A. Clemens & Ethan G. Lewis & Hannah M. Postel, 2018. "Immigration Restrictions as Active Labor Market Policy: Evidence from the Mexican Bracero Exclusion," American Economic Review, American Economic Association, vol. 108(6), pages 1468-1487, June.
    6. 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.
    7. Christian Dustmann & Albrecht Glitz, 2015. "How Do Industries and Firms Respond to Changes in Local Labor Supply?," Journal of Labor Economics, University of Chicago Press, vol. 33(3), pages 711-750.
    8. repec:wly:soecon:v:81:4:y:2015:p:928-946 is not listed on IDEAS
    9. repec:wly:soecon:v:81:4:y:2015:p:947-959 is not listed on IDEAS
    10. Bohn, Sarah & Lofstrom, Magnus & Raphael, Steven, 2015. "Do E-Verify Mandates Improve Labor Market Outcomes of Low-Skilled Native and Legal Immigrant Workers?," IZA Discussion Papers 9420, Institute of Labor Economics (IZA).
    11. Borjas, George J. & Cassidy, Hugh, 2019. "The wage penalty to undocumented immigration," Labour Economics, Elsevier, vol. 61(C).
    12. repec:wly:soecon:v:81:4:y:2015:p:960-979 is not listed on IDEAS
    13. Pia M. Orrenius & Madeline Zavodny & Emily Gutierrez, 2018. "Do State Employment Eligibility Verification Laws Affect Job Turnover?," Contemporary Economic Policy, Western Economic Association International, vol. 36(2), pages 394-409, April.
    14. East, Chloe N. & Luck, Philip & Mansour, Hani & Velasquez, Andrea, 2018. "The Labor Market Effects of Immigration Enforcement," IZA Discussion Papers 11486, Institute of Labor Economics (IZA).
    15. Sarah Bohn & Robert Santillano, 2017. "Local Immigration Enforcement and Local Economies," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(2), pages 236-262, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christian Dustmann & Hyejin Ku & Tetyana Surovtseva, 2023. "Real Exchange Rates and the Earnings of Immigrants," The Economic Journal, Royal Economic Society, vol. 134(657), pages 271-294.
    2. Parag Mahajan, 2021. "Immigration and Local Business Dynamics: Evidence from U.S. Firms," Working Papers 21-18, Center for Economic Studies, U.S. Census Bureau.
    3. Pia M. Orrenius & Madeline Zavodny, 2021. "The effect of employer enrolment in E-Verify on low-skilled U.S. workers," Applied Economics Letters, Taylor & Francis Journals, vol. 28(11), pages 954-957, June.
    4. Amuedo Dorantes, Catalina & Arenas-Arroyo, Esther & Mahajan, Parag & Schmidpeter, Bernhard, 2023. "Low-wage jobs, foreign-born workers, and firm performance," Ruhr Economic Papers 1040, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Michael A. Clemens & Ethan G. Lewis, 2022. "The Effect of Low-Skill Immigration Restrictions on US Firms and Workers: Evidence from a Randomized Lottery," CESifo Working Paper Series 10057, CESifo.
    6. Brandyn Churchill, 2021. "E‐Verify mandates and unauthorized immigrants' health insurance coverage," Southern Economic Journal, John Wiley & Sons, vol. 88(2), pages 487-526, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amuedo-Dorantes, Catalina & Arenas-Arroyo, Esther & Wang, Chunbei, 2020. "Is immigration enforcement shaping immigrant marriage patterns?," Journal of Public Economics, Elsevier, vol. 190(C).
    2. Brandyn F. Churchill & Andrew Dickinson & Taylor Mackay & Joseph J. Sabia, 2022. "The Effect of E-Verify Laws on Crime," ILR Review, Cornell University, ILR School, vol. 75(5), pages 1294-1320, October.
    3. Tianyuan Luo & Genti Kostandini & Jeffrey L. Jordan, 2023. "Stringent immigration enforcement and the farm sector: Evidence from E‐Verify adoption across states," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 1211-1232, June.
    4. Tianyuan Luo & Genti Kostandini, 2023. "Omnibus or Ominous immigration laws? Immigration policy and mental health of the Hispanic population," Health Economics, John Wiley & Sons, Ltd., vol. 32(1), pages 90-106, January.
    5. Pia M. Orrenius & Madeline Zavodny & Emily Gutierrez, 2018. "Do State Employment Eligibility Verification Laws Affect Job Turnover?," Contemporary Economic Policy, Western Economic Association International, vol. 36(2), pages 394-409, April.
    6. Gunadi Christian, 2020. "Examining the Impact of Legal Arizona Worker Act on Native Female Labor Supply in the United States," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-41, March.
    7. East, Chloe N. & Velasquez, Andrea, 2018. "The Effect of Increasing Immigration Enforcement on the Labor Supply of High-Skilled Citizen Women," IZA Discussion Papers 12029, Institute of Labor Economics (IZA).
    8. Parag Mahajan, 2021. "Immigration and Local Business Dynamics: Evidence from U.S. Firms," Working Papers 21-18, Center for Economic Studies, U.S. Census Bureau.
    9. Sarah Greer & Pia M. Orrenius & Madeline Zavodny, 2020. "Who Signs up for E-Verify? Insights from DHS Enrollment Records," Working Papers 2002, Federal Reserve Bank of Dallas.
    10. Amuedo-Dorantes, Catalina & Bucheli, Jose R., 2020. "Immigration Policy and Hispanics' Willingness to Run for Office," IZA Discussion Papers 13698, Institute of Labor Economics (IZA).
    11. Shrestha, Samyam & Sant'Anna, Hugo, 2023. "Immigration Enforcement, Entrepreneurship, and Firm Entry/Exit," 2023 Annual Meeting, July 23-25, Washington D.C. 335611, Agricultural and Applied Economics Association.
    12. Ifft, Jennifer & Jodlowski, Margaret, 2022. "Is ICE freezing US agriculture? Farm-level adjustment to increased local immigration enforcement," Labour Economics, Elsevier, vol. 78(C).
    13. Amuedo-Dorantes, Catalina & Arenas-Arroyo, Esther, 2020. "U.S. Immigration Policy and Immigrant Fertility," IZA Discussion Papers 13748, Institute of Labor Economics (IZA).
    14. Tianyuan Luo & Genti Kostandini, 2022. "Stringent immigration enforcement and responses of the immigrant‐intensive sector: Evidence from E‐Verify adoption in Arizona," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1411-1434, August.
    15. 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.
    16. Dicarlo, Emanuele, 2022. "How Do Firms Adjust to Negative Labor Supply Shocks? Evidence from Migration Outflows," IZA Discussion Papers 14994, Institute of Labor Economics (IZA).
    17. Catalina Amuedo-Dorantes & Fernando A. Lozano, 2019. "Interstate Mobility Patterns of Likely Unauthorized Immigrants: Evidence from Arizona," Journal of Economics, Race, and Policy, Springer, vol. 2(1), pages 109-120, June.
    18. Chassamboulli, Andri & Peri, Giovanni, 2020. "The economic effect of immigration policies: analyzing and simulating the U.S. case," Journal of Economic Dynamics and Control, Elsevier, vol. 114(C).
    19. East, Chloe N. & Luck, Philip & Mansour, Hani & Velasquez, Andrea, 2018. "The Labor Market Effects of Immigration Enforcement," IZA Discussion Papers 11486, Institute of Labor Economics (IZA).
    20. Amuedo-Dorantes, Catalina & Arenas-Arroyo, Esther, 2021. "Immigration policy and fertility: Evidence from undocumented migrants in the U.S," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 274-297.

    More about this item

    JEL classification:

    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:26676. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.