Working Paper: NBER ID: w26676
Authors: 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.
Keywords: e-Verify; employment verification; labor market outcomes; immigration policy
JEL Codes: J18; J21; J3; J61; J63
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| e-Verify mandates (K37) | targeted impact on Hispanic and work-ineligible populations (J68) |
| e-Verify mandates (K37) | no evidence of employment gains among native-born workers (J69) |
| e-Verify mandates (K37) | decline in native-born employment (J69) |
| e-Verify mandates (K37) | declines in employment among Hispanic workers (J69) |
| e-Verify mandates (K37) | increase in new hires queried through e-Verify system (J68) |
| e-Verify mandates (K37) | decline in Hispanic employment (J63) |
| e-Verify mandates (K37) | decline in employment separations (J63) |
| e-Verify mandates (K37) | decline in hires (J63) |