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Friday, 24 August 2012

Immigration Reform and Control Act and the Effect on the Labor Market

By Charles Wheeler


The immigration laws, passed in the twentieth century, that molded the inflow of people from various countries, started with rules to deal only with numbers, and not work-related abilities. Two regulations were introduced in the 1920's that imposed quotas on people entering into the United States from other nations.

They were the Emergency Quota Act of 1917, and the Immigration Act of 1924. The former, put into law by Woodrow Wilson and an overwhelming number in Congress, prohibited entry of "undesirables" including those with mental illnesses and those under sixteen years of age who were illiterate. That regulation also introduced the requirement to read a text as a condition of citizenship.

The Bracero Program of 1942, enacted into law by Franklin Roosevelt, was a migrant worker program, enabling workers from Latin America to enter into the United States for agricultural work, only. Immigration and Nationality Act of 1952, added deportation to those suspected of being a Communist sympathizer. The Immigration and Nationality Act of 1965 was the first legislation to do away with quotas based on national origin, and to favor individuals with family already living here. This law additionally ended those entering under the Bracero Program, and created the first wave of illegal immigrants from Latin America, a result of the inability to enter through the worker program.

The Immigration Reform and Control Act, or IRCA, was setup to deal with the influx of illegal workers who began to enter the United States larger after the repeal of the farm worker program. The law stated that employers who knowingly hired illegal workers would be held liable. The law also established the I-9 form as a means of verifying status for working eligibility.

The immediate consequence that the passing of the IRCA had on hiring practices was minimal. Employers continued hiring practices with those of unverified status, and the I-9 forms were not actively enforced. There was a move to the hiring of subcontractors as opposed to direct hiring. This allowed the employer to not have to deal with the status of the workers. Rather, the subcontracting firm was responsible for legal status of its workers. The laborer suffered a decrease in wages, as subcontractors held a portion of the worker's pay to cover overhead expenses.

The reform act known as IRCA is still in force, today. There is no real effort to verify the information supplied on the I-9 forms. When a worker is suspected of illegal status, the enforcement is largely imposed upon the laborer, and not on the employer. Immigration laws need to come into line with practice, or for stricter enforcement of statues currently in place. Having one set of laws, and a separate practice for enforcement is not a good way to control immigration.




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