- - A1 -Appendix A: Using SSNs to Identify Undocumented Workers A.1. Identifying Invalid Social Security Numbers Every quarter employers must file a report with their state's Department of Labor detailing all wages paid to workers who are covered under the Social Security Act of 1935. Each worker on this report is identified by his/her social security number (SSN). There are a number of ways in which one can establish that a reported social security number is invalid. The Social Security Administration provides a service by which an employer can upload a file of SSNs for checking, but one must register as an employer to obtain this service.i In addition, there are several known limitations on what can be considered a valid social security number, so a simple algorithm is used to check whether each number conforms to the valid parameters.
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- - B2 -B.3. Construction of Industry Skill Each industry is assigned a skill intensity based on the weighted average of educational attainment of workers in that industry, using the Current Population Survey for 1994. This year was chosen since this is the first year in which the nativity (place of birth) of respondents is reported. For each industry, the percent of workers with less than a high school education (LTHS), a high school education (HS), some college (SCOLL), college degree (COLL), and graduate education (GRAD) is calculated. The regressor HigherEducation is the share of workers in the firm's industry with a college or graduate education. - C1 -Appendix C: Matching strategy and first stage matching results.
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- Average Annual Growth Rate of: Total number of workers in the U.S. 1.48% Total number of foreign born, Hispanic workers in the U.S. 8.03% Total number of foreign born, Hispanic workers with less than a high school degree in Georgia 7.28% Total number of workers in Georgia 2.92% Total number of foreign born, Hispanic workers in Georgia 26.82% Total number of foreign born, Hispanic workers with less than a high school degree in Georgia 21.48% Total number of workers in GA identified as undocumented 25.29% Source: Current Population Survey, Basic Survey (March), 1994-2006; and authors' calculations.
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- Considering the sample size, the standardized bias statistic is perhaps more suitable to test the quality of the matching, since it does not depend on the number of observations in the sample. Before matching it is evident that there are considerable differences in the controls between treatment and comparison group. With a bias of ranging from 2 to 108 percent, only 4 of the covariates showed a difference that could be considered âsmallâ compared to the threshold suggested by Rosenbaum and Rubin (1985) of 20 percent. After matching, all the differences are considerably reduced with a median bias reduction of 91 percent (ranging in absolute value from a 54 percent reduction to a 99.5 percent reduction). Further, all covariates present less than eight percent bias (ranging from 0.4 to 8 percent), supporting the quality of the matching.23 23 The full set of bias statistics is available upon request (for the full sample and for each sector separately).
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- Figure 2. Growth in the earnings suspense file and the total number and percent of workers identified as undocumented in Georgia, 1990-2006.
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- Figure A1. 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Percent of workers with invalid SSN, by reason, construction, 1990:1 - 2006:4 Invalid because of high area or out-of-sequence group Invalid for any other reason - B1 -Appendix B: Definitions of broad sectors, industry skill, and industry labor intensity. B.1. Definitions of Broad Sectors Throughout this paper, regressors are measured at different levels of industry aggregation. The process of matching is performed at the broad sector level, which are defined based on two-digit NAICS classifications. These classifications are designed to match as closely as possible the former SIC classifications and are reported in Table A1. Table B1: Definitions of broad sectors based on 2-digit NAICS classifications.
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- In 1996 the Internal Revenue Service (IRS) introduced the Individual Tax Identification Number (ITIN) to allow individuals who had income from the U.S. to file a tax return (the first ITIN was issued in 1997). It is simply a tax processing number, and does not authorize an individual to work in the U.S. Employers are instructed by the IRS to not accept an ITIN in place of a SSN for employee identification for work. An ITIN is only available to resident and nonresident aliens who are not eligible for U.S. employment and need identification for other tax purposes.iii ITIN numbers have a 9 in the first digit of the Area Number and a 7 or 8 in the first digit of the Group Number. Anyone with this numbering scheme will be identified as having an invalid Area Number; the percent of SSNs with high area numbers that also match the ITIN numbering scheme has risen from about one percent in 1997 to over 60 percent by the end of 2006.
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