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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 by exploiting the sudden and unexpected inflow of repatriates to France created by the independence of Algeria in 1962. I track the impact of this particular supply shift on the average wage of pre-existing native workers across French regions in 1962, 1968 and 1976. I find that regional wages decline between 1962 and 1968, before returning to their pre-shock level 15 years after. While regional wages recovered, this particular supply shock had persistent distributional effects. By increasing the relative supply of high educated workers, the inflow of repatriates contributed to the reduction of wage inequality between high and low educated native workers over the whole period considered (1962-1976).

Suggested Citation

  • Anthony Edo, 2017. "The Impact of Immigration on Wage Dynamics: Evidence from the Algerian Independence War," Working Papers 2017-13, CEPII research center.
  • Handle: RePEc:cii:cepidt:2017-13
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    References listed on IDEAS

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    Cited by:

    1. Anthony Edo & Yvonne Giesing & Jonathan Öztunc & Panu Poutvaara, 2017. "Immigration and Electoral Support for the Far Left and the Far Right," ifo Working Paper Series 244, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    2. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr, 2018. "The Effects of Immigration in Developed Countries: Insights from Recent Economic Research," CEPII Policy Brief 2018-22, CEPII research center.

    More about this item

    Keywords

    Labor Supply Shock; Wages; Immigration; Natural Experiment.;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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