Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/59506
Authors: 
Stark, Oded
Jakubek, Marcin
Year of Publication: 
2012
Series/Report no.: 
University of Tübingen Working Papers in Economics and Finance 38
Abstract: 
We investigate the impact of the imposition of sanctions for employing illegal migrants on the welfare of native workers. Our analysis is based on the premise that in response to such sanctions, managers in a firm may be reassigned from supervision of production to verification of the legality of the firm's workforce. When there is full employment in the host country, a profit-maximizing firm will assign managers to verification if the sanctions are steep enough. This reassignment impedes production efficiency and, consequently, leads to a reduction in the wages of both illegal migrants and native workers, inevitably hurting the latter, who are the intended beneficiaries of the sanctions.
Subjects: 
Employer sanctions
Illegal migrant workers
Natives' welfare
The formation of public policy
JEL: 
D21
I38
J21
J61
K31
L51
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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