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Who stays and who leaves? Immigration and the selection of natives across locations

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  • Javier Ortega
  • Gregory Verdugo

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

We study the impact of local immigration inflows on natives' wages using a large French administrative panel from 1976-2007. We show that local immigration inflows are followed by reallocations of blue-collar natives across commuting zones. Because these reallocations vary with the initial occupation and blue-collar location movers have wages below the blue-collar average, controlling for changes in local composition is crucial to assess how wages adjust to immigration. Immigration temporarily lowers the wages of blue-collar workers, with unskilled workers experiencing larger losses. Location movers lose more than stayers in terms of daily wages but move to locations with cheaper housing.

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  • Javier Ortega & Gregory Verdugo, 2021. "Who stays and who leaves? Immigration and the selection of natives across locations," SciencePo Working papers Main hal-03370661, HAL.
    • Handle: RePEc:hal:spmain:hal-03370661
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03370661
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    Cited by:

    1. 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.
    2. Schmutz, Benoît & Verdugo, Gregory, 2023. "Do elections affect immigration? Evidence from French municipalities," Journal of Public Economics, Elsevier, vol. 218(C).
    3. Edo, Anthony & Özgüzel, Cem, 2023. "The Impact of Immigration on the Employment Dynamics of European Regions," IZA Discussion Papers 16469, Institute of Labor Economics (IZA).
    4. Haan, Peter & Wnuk, Izabela, 2024. "The Effect of Migration on Careers of Natives: Evidence from Long-Term Care," IZA Discussion Papers 16749, Institute of Labor Economics (IZA).
    5. Peter Haan & Izabela Wnuk, 2024. "The Effect of Migration on Careers of Natives: Evidence from Long-term Care," Discussion Papers of DIW Berlin 2070, DIW Berlin, German Institute for Economic Research.
    6. Amior, Michael & Stuhler, Jan, 2023. "Immigration, Monopsony and the Distribution of Firm Pay," IZA Discussion Papers 16692, Institute of Labor Economics (IZA).
    7. Anthony Edo & Cem Özgüzel, 2023. "The Impact of Immigration on the Employment Dynamics of European Regions," Working Papers 2023-20, CEPII research center.

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    More about this item

    Keywords

    France; immigration; wages; employment;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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