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Immigration Enforcement and the Hiring of Low-Skilled Labor

We examine how firms adjust their labor demand to immigration policy changes resulting from intensified interior immigration enforcement. Using the temporal and geographic variation in the adoption of such policies as a source of identification, we find that firms boost their demand for low-skilled foreign-born labor under the H-2B visa program as enforcement intensifies. Furthermore, firms' increased demand for guest workers is inversely related to natives' employment in occupations where most H-2B workers are hired; however, it does not seem to alter natives' wages or work hours, nor does it seem to redistribute native labor away from those occupations.