DO STATE EMPLOYMENT ELIGIBILITY VERIFICATION LAWS AFFECT JOB TURNOVER?

Pia Orrenius, Madeline Zavodny and Emily Gutierrez

Contemporary Economic Policy, 2018, vol. 36, issue 2, 394-409

Abstract: State laws requiring employers to verify workers' employment eligibility may reduce employment and earnings among unauthorized workers and make it difficult for them to switch jobs. Using data from the 2005–2014 Quarterly Workforce Indicators, we find evidence of a reduction in employment and job turnover among Hispanics as a whole in states that require all employers to verify employment eligibility. These adverse effects become larger as the share of likely unauthorized Hispanic workers falls. The drop in job turnover may be due to the laws trapping some Hispanic workers in their jobs. There is little effect on employment or job turnover among non‐Hispanic whites or blacks. There is no effect on average pay for all groups of workers. (JEL J15, J61, J68)

Date: 2018
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