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The Impact of Immigration on Native Wages and Employment

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  • Edo Anthony

    (Paris School of Economics, 48 Boulevard Jourdan, 75014 Paris, France Centre d’économie de la Sorbonne, University of Paris I Panthéon-Sorbonne, 106-112 Boulevard de l’Hôpital, 75647 Paris, France)

Abstract

This paper investigates the immigration impact on native outcomes using microlevel data for France. I find that immigration does not affect the wages of competing natives, but induces adverse employment effects. This finding is consistent with a wage structure that is rigid in France. The quality of the data allows to dig more deeply into the interpretation of the immigration impact. First, I show that immigrants displace native workers because they are more willing to work at lower wages due to lower outside options. Second, I find that natives on short-term contracts, who are less subject to wage rigidities, do experience wage losses due to immigration.

Suggested Citation

  • Edo Anthony, 2015. "The Impact of Immigration on Native Wages and Employment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(3), pages 1151-1196, July.
    • Handle: RePEc:bpj:bejeap:v:15:y:2015:i:3:p:1151-1196:n:8
    DOI: 10.1515/bejeap-2014-0075
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    1. Is fear of immigration fueled by facts or ignorance?
      by nawmsayn in ZeeConomics on 2015-01-02 00:59:44

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    3. Stefan Jestl & Sandra M. Leitner & Sebastian Leitner, 2022. "The relative impact of different forces of globalization on wage inequality: A fresh look at the EU experience," Review of International Economics, Wiley Blackwell, vol. 30(4), pages 1003-1037, September.
    4. Barrera, Oscar & Bensidoun, Isabelle & Edo, Anthony, 2022. "Second-Generation Immigrants and Native Attitudes Toward Immigrants in Europe," IZA Discussion Papers 15393, Institute of Labor Economics (IZA).
    5. Stefano Fusaro & Enrique López‐Bazo, 2021. "Immigration and Native Employment. Evidence from Italian Provinces in the Aftermath of the Great Recession," Papers in Regional Science, Wiley Blackwell, vol. 100(2), pages 405-428, April.
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    8. Valentine Fays & Benoît Mahy & François Ryckx, 2024. "Do migrants displace native-born workers on the labour market? The impact of workers’ origin," LIDAM Discussion Papers IRES 2024004, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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    10. Belal Fallah, 2017. "The Economic Response of Rural Areas to Local Supply Shock: Evidence From Palestine," Working Papers 1108, Economic Research Forum, revised 06 2017.
    11. Dilan Tas & Merima Kastrat, 2019. "Does Immigration Affect Native’s Labor Market Outcomes in Germany?," LIS Working papers 770, LIS Cross-National Data Center in Luxembourg.
    12. Edo, Anthony & Toubal, Farid, 2017. "Immigration and the gender wage gap," European Economic Review, Elsevier, vol. 92(C), pages 196-214.
    13. Anthony Edo & Farid Toubal, 2015. "Selective Immigration Policies and Wages Inequality," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 160-187, February.
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    More about this item

    Keywords

    immigration; wage rigidities; employment; naturalization;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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