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The Impact of Immigration on Wage Dynamics: Evidence from the Algerian Independence War

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  • Anthony Edo

Abstract

This paper investigates the dynamics of wage adjustment to an exogenous increase in labor supply exploiting the sudden and unexpected inflow of repatriates to France resulting from Algerian independence in 1962. I measure the impact of this particular supply shift on the average wage of pre-existing native workers across French regions between 1962 and 1976. I find that regional wages decreased between 1962 and 1968, before returning to their pre-shock level 15 years after. I also investigate the dynamics of skill-specific wages in response to the regional penetration of repatriates and find that the wages of high and low educated native workers declined initially but fully recovered by 1976.

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  • Anthony Edo, 2020. "The Impact of Immigration on Wage Dynamics: Evidence from the Algerian Independence War," Journal of the European Economic Association, European Economic Association, vol. 18(6), pages 3210-3260.
    • Handle: RePEc:oup:jeurec:v:18:y:2020:i:6:p:3210-3260.
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    File URL: http://hdl.handle.net/10.1093/jeea/jvz064
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    Cited by:

    1. Lara Bohnet & Susana Peralta & João Pereira dos Santos, 2022. "Cousins from Overseas: The Labour Market Impact of a Major Forced Return Migration Shock," CESifo Working Paper Series 9971, CESifo.
    2. Matthew Soener & Olivier Godechot & Mirna Safi, 2023. "Who Benefits from Migrant and Female Labor? Connecting Wages to Demographic Changes in French Workplaces 1," Post-Print hal-04319370, HAL.
    3. Javier Ortega & Gregory Verdugo, 2022. "Who stays and who leaves? Immigration and the selection of natives across locations," Journal of Economic Geography, Oxford University Press, vol. 22(2), pages 221-260.
    4. Borjas, George J. & Edo, Anthony, 2021. "Gender, Selection into Employment, and the Wage Impact of Immigration," IZA Discussion Papers 14261, Institute of Labor Economics (IZA).
    5. Braun, Sebastian Till & Weber, Henning, 2021. "How do regional labor markets adjust to immigration? A dynamic analysis for post-war Germany," Journal of International Economics, Elsevier, vol. 129(C).
    6. Akira Sasahara & Yumin Sui & Emily Taguchi, 2023. "Immigration, imports, and (im)mutable Japanese labor markets," Keio-IES Discussion Paper Series 2023-002, Institute for Economics Studies, Keio University.
    7. Lebow Jeremy, 2022. "The labor market effects of Venezuelan migration to Colombia: reconciling conflicting results," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 13(1), pages 1-49, January.
    8. Ceren Ozgen, 2021. "The economics of diversity: Innovation, productivity and the labour market," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1168-1216, September.
    9. Lara Bohnet & Susana Peralta & Joao Pereira dos Santos, 2021. "Cousins from overseas: the labour market impact of half a million Portuguese repatriates," NOVAFRICA Working Paper Series wp2114, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    10. Lebow, Jeremy, 2024. "Immigration and occupational downgrading in Colombia," Journal of Development Economics, Elsevier, vol. 166(C).

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