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

Shalise Ayromloo (), Benjamin Feigenberg and Darren Lubotsky
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Shalise Ayromloo: University of Illinois at Chicago

No 2004, RFBerlin Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin)

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 e ects 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.

Date: 2020-01
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Citations: View citations in EconPapers (12)

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Working Paper: States Taking the Reins? Employment Verification Requirements and Local Labor Market Outcomes (2020)
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