Do State Employment Eligibility Verification Laws Affect Job Turnover?

16 Pages Posted: 22 Feb 2018

See all articles by Pia M. Orrenius

Pia M. Orrenius

Federal Reserve Banks - Federal Reserve Bank of Dallas

Madeline Zavodny

University of North Florida; IZA Institute of Labor Economics; Agnes Scott College

Emily Gutierrez

Federal Reserve Banks - Federal Reserve Bank of Dallas

Date Written: April 2018

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 Classification: J15, J61, J68

Suggested Citation

Orrenius, Pia M. and Zavodny, Madeline and Gutierrez, Emily, Do State Employment Eligibility Verification Laws Affect Job Turnover? (April 2018). Contemporary Economic Policy, Vol. 36, Issue 2, pp. 394-409, 2018, Available at SSRN: https://ssrn.com/abstract=3127874 or http://dx.doi.org/10.1111/coep.12251

Pia M. Orrenius (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Dallas ( email )

PO Box 655906
Dallas, TX 75265-5906
United States
214-922-5747 (Phone)
214-922-5194 (Fax)

Madeline Zavodny

University of North Florida ( email )

4567 St. Johns Bluff Road, South
Jacksonville, FL 32224-2645
United States

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Agnes Scott College ( email )

United States

Emily Gutierrez

Federal Reserve Banks - Federal Reserve Bank of Dallas

2200 North Pearl Street
PO Box 655906
Dallas, TX 75265-5906
United States

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