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Employer sanctions, and the welfare of native workers

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  • Stark, Oded
  • Jakubek, Marcin

Abstract

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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    1. 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.
    2. 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, December.
    3. 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.
    4. 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.
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    Cited by:

    1. 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, John Wiley & Sons, vol. 81(4), pages 960-979, April.
    2. 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.
    3. Pia M. Orrenius & Madeline Zavodny, 2015. "The impact of E‐Verify mandates on labor market outcomes," Southern Economic Journal, John Wiley & Sons, vol. 81(4), pages 947-959, April.
    4. Orrenius, Pia M. & Zavodny, Madeline, 2014. "How Do E-Verify Mandates Affect Unauthorized Immigrant Workers?," IZA Discussion Papers 7992, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Employer sanctions; Illegal migrant workers; Natives’ welfare; The formation of public policy;
    All these keywords.

    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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