This article explores the labor market effects of the employer sanctio
ns provisions of the 1986 Immigration Reform and Control Act (IRCA). T
hese provisions levy a ''paperwork fine'' on all employers who fail to
screen each new worker for work-authorized status, as well as a ''hir
ing fine'' on employers who knowingly hire unauthorized workers. Using
administrative data, we extend prior research and examine the impact
of each type of fine on metropolitan wages in thirteen nonagricultural
industries, Although government enforcement has been modest, we find
that these fines have a statistically significant, although correspond
ingly modest, effect on earnings: expected paperwork fines lower avera
ge wages, while expected hiring fines raise wages.