Employer sanctions, and the welfare of native workers

► We study the impact of the imposition of sanctions for employing illegal migrants. ► In response, managers in a firm may be reassigned from production to verification. ► With full employment and steep sanctions, the firm will assign managers to verification. ► This reassignment impedes efficiency and reduces the wages of native workers. ► The welfare of the native workers (the sanctions' intended beneficiaries) is reduced.