Several years ago, the Dallas Fed's annual report featured an essay entitled "The Churn." The churn is our term for what economist Joseph Schumpeter called "creative destruction." A dynamic economy like ours can grow and make room for the new only if we allow parts of the economy to shrink. Unprofitable firms and industries must be allowed to fail and go out of business so their workers and other resources can move into firms and industries whose products are more favored or needed by consumers. This is, as the essay's subtitle says, the paradox of progress.
Digital Enforcement: Effects of E-Verify on Unauthorized Immigrant Employment and Population
E-Verify is a federal system that since 2003 has allowed employers across the country to digitally check eligibility documents provided by the workers they hire. The system is intended to deter the hiring of unauthorized immigrants. E-Verify mandates were in effect in 21 states as of December 2016. This report studies the effects of E-Verify in the seven states where E-Verify has been mandatory for all or almost all employers: Alabama, Arizona, Georgia, Mississippi, Utah, North Carolina and South Carolina. It assesses the impact of universal E-Verify mandates on the number of likely ...