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Immigration and the gender wage gap

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  • Edo, Anthony
  • Toubal, Farid

Abstract

This paper investigates the effects of immigration on the gender wage gap. Using a detailed individual French dataset, we shed lights on the strong feminization of the immigrant workforce which coincides with a rise in the gender wage gap from 1990 to 2010. Our theoretical model predicts that a shift in the supply of female workers increases the gender wage gap when men and women are imperfect substitutes in production. Our structural estimate points to an imperfect substitutability between men and women workers of similar education, experience and occupation. Our econometric result indicates that a 10% increase in the relative supply of immigrant female workers lowers by 4% the relative wage of female native workers belonging to the same education–experience group. Accounting for cross-group effects, our simulations show that the rise in the relative number of female immigrants decreases the relative wage of female native workers, thereby contributing to a widening native gender wage gap.

Suggested Citation

  • Edo, Anthony & Toubal, Farid, 2017. "Immigration and the gender wage gap," European Economic Review, Elsevier, vol. 92(C), pages 196-214.
    • Handle: RePEc:eee:eecrev:v:92:y:2017:i:c:p:196-214
    DOI: 10.1016/j.euroecorev.2016.12.005
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    Cited by:

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    2. 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).
    3. 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.
    4. Kong, Dongmin & Liu, Lihua & Yang, Zhiqing, 2021. "High-speed rails and rural-urban migrants’ wages," Economic Modelling, Elsevier, vol. 94(C), pages 1030-1042.
    5. Cortés, Patricia, 2023. "Immigration, household production, and native women’s labor market outcomes: A survey of a global phenomenon," European Economic Review, Elsevier, vol. 158(C).
    6. Eva Moreno‐Galbis & Jeremy Tanguy & Ahmed Tritah & Catherine Laffineur, 2019. "Immigrants’ Wage Performance in a Routine Biased Technological Change Era: France 1994–2012," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(4), pages 623-673, October.
    7. Edo, Anthony & Giesing, Yvonne & Öztunc, Jonathan & Poutvaara, Panu, 2019. "Immigration and electoral support for the far-left and the far-right," European Economic Review, Elsevier, vol. 115(C), pages 99-143.
    8. Fabrice Etilé & Marie Plessz, 2018. "Women’s employment and the decline of home cooking: Evidence from France, 1985–2010," Review of Economics of the Household, Springer, vol. 16(4), pages 939-970, December.
    9. Joan Llull, 2021. "Immigration and Gender Differences in the Labor Market," Journal of Human Capital, University of Chicago Press, vol. 15(1), pages 174-203.
    10. Wei, Hao & Yuan, Ran & Zhao, Laixun, 2020. "International talent inflow and R&D investment: Firm-level evidence from China," Economic Modelling, Elsevier, vol. 89(C), pages 32-42.
    11. Marisetty, Vijaya Bhaskar & Prasad, Salu, 2022. "On the side effects of mandatory gender diversity laws in corporate boards," Pacific-Basin Finance Journal, Elsevier, vol. 73(C).
    12. Florian W. Bartholomae & Chang Woon Nam & Pierre Rafih, 2020. "The Impact of Welfare Chauvinism on the Results of Right-Wing Populist Voting in Germany after the Refugee Crisis," CESifo Working Paper Series 8629, CESifo.

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    More about this item

    Keywords

    Immigration; Wages; Gender gap; Elasticity of substitution;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • 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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