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Do E-Verify Mandates Improve Labor Market Outcomes of Low-Skilled Native and Legal Immigrant Workers?

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  • Bohn, Sarah

    (Public Policy Institute of California)

  • Lofstrom, Magnus

    (Public Policy Institute of California)

  • Raphael, Steven

    (University of California, Berkeley)

Abstract

We examine the impact of state level legislation against the hiring of unauthorized immigrants on employment opportunities among competing low-skilled workers. Our focus is on the role of E-Verify mandates and specifically, we test for effects of the 2007 Legal Arizona Workers Act (LAWA) on employment outcomes of low-skilled native-born and legal immigrant workers in Arizona. We use the synthetic control method developed by Abadie, Diamond and Hainmueller (2010) to select a group of states against which the labor market trends of Arizona can be compared. Our results suggest that contrary to its intent, the Legal Arizona Workers Act does not appear to have improved labor market outcomes of competing legal low-skilled workers. In fact, we find some evidence of diminished employment and increased unemployment among legal low-skilled workers in Arizona. These findings are concentrated on the largest demographic group of workers – non-Hispanic white men. While they are less likely to find employment, those who do have on average higher earnings as a result of LAWA. The pattern of results points to both labor supply and labor demand contractions due to LAWA, with labor supply dominating in terms of magnitude.

Suggested Citation

  • 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).
    • Handle: RePEc:iza:izadps:dp9420
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    References listed on IDEAS

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    1. 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.
    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. Michael Good, 2013. "Do immigrant outflows lead to native inflows? An empirical analysis of the migratory responses to US state immigration legislation," Applied Economics, Taylor & Francis Journals, vol. 45(30), pages 4275-4297, October.
    4. Stark, Oded & Jakubek, Marcin, 2012. "Employer sanctions, and the welfare of native workers," Economics Letters, Elsevier, vol. 117(3), pages 533-536.
    5. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    6. Michael Good, 2012. "Do immigrant outflows lead to native inflows? An empirical analysis of the migratory responses to US state immigration legislation," Working Papers 1202, Florida International University, Department of Economics.
    7. Magnus Lofstrom & Laura Hill & Joseph Hayes, 2013. "Wage And Mobility Effects Of Legalization: Evidence From The New Immigrant Survey," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 171-197, February.
    8. Thomas C. Buchmueller & John DiNardo & Robert G. Valletta, 2011. "The Effect of an Employer Health Insurance Mandate on Health Insurance Coverage and the Demand for Labor: Evidence from Hawaii," American Economic Journal: Economic Policy, American Economic Association, vol. 3(4), pages 25-51, November.
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    Cited by:

    1. George J. Borjas, 2017. "The Earnings of Undocumented Immigrants," NBER Working Papers 23236, National Bureau of Economic Research, Inc.
    2. 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.
    3. Charlton, Diane & Castillo, Marcelo J. & Hertz, Thomas, 2018. "Explaining the Growth in Agricultural Guest Worker Demand," 2018 Annual Meeting, August 5-7, Washington, D.C. 274171, Agricultural and Applied Economics Association.
    4. 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.
    5. Amuedo-Dorantes, Catalina & Arenas-Arroyo, Esther & Wang, Chunbei, 2020. "Is immigration enforcement shaping immigrant marriage patterns?," Journal of Public Economics, Elsevier, vol. 190(C).
    6. Borjas, George J. & Cassidy, Hugh, 2019. "The wage penalty to undocumented immigration," Labour Economics, Elsevier, vol. 61(C).
    7. Sari Pekkala Kerr & William R. Kerr, 2021. "Whose Job Is It Anyway? Coethnic Hiring in New US Ventures," Journal of Human Capital, University of Chicago Press, vol. 15(1), pages 86-127.
    8. Jeff Luckstead & Rodolfo M. Nayga & Heather A. Snell, 2023. "US domestic workers' willingness to accept agricultural field jobs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1693-1715, September.
    9. 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.
    10. Joaquin Alfredo-Angel Rubalcaba & José R. Bucheli & Camila Morales, 2024. "Immigration enforcement and labor supply: Hispanic youth in mixed-status families," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(2), pages 1-38, June.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. 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.
    16. Luo, Tianyuan & Kostandini, Genti & Jordan, Jeffrey L., 2017. "The impact of E-Verify Adoption on the Supply of Undocumented Labor in the U.S. Agricultural Sector," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259198, Agricultural and Applied Economics Association.
    17. 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.
    18. Charlton, Diane & Kostandini, Genti, 2018. "How Agricultural Producers Adjust to a Shrinking Farm Labor Supply," 2018 Annual Meeting, August 5-7, Washington, D.C. 274169, Agricultural and Applied Economics Association.
    19. Amuedo-Dorantes, Catalina & Arenas-Arroyo, Esther, 2020. "U.S. Immigration Policy and Immigrant Fertility," IZA Discussion Papers 13748, Institute of Labor Economics (IZA).
    20. 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.

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    More about this item

    Keywords

    E-Verify; immigration; undocumented; unauthorized; illegal; Arizona;
    All these keywords.

    JEL classification:

    • J8 - Labor and Demographic Economics - - Labor Standards
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • 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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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