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Three Million Foreigners, Three Million Unemployed? Immigration and the French Labor Market

Author

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  • Dominique M. Gross

Abstract

This paper investigates the effects of the flows of immigrant workers on the French labor market between the mid-1970s and mid-1990s. Using a system of equations for unemployment, labor-force participation, the real wage, and the immigration rate, it is shown that, in the long run, legal and amnestied immigrant workers, and their families, lower the unemployment rate permanently. In the short run, the arrival of immigrants increases unemployment slightly with an impact similar to that of an increase in domestic labor-force participation. The composition of immigration flows matters, and the proportion of skilled and less-skilled workers should remain balanced.

Suggested Citation

  • Dominique M. Gross, 1999. "Three Million Foreigners, Three Million Unemployed? Immigration and the French Labor Market," IMF Working Papers 99/124, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:99/124
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    Cited by:

    1. Venturini, Alessandra & Villosio, Claudia, 2002. "Are Immigrants Competing with Natives in the Italian Labour Market? The Employment Effect," IZA Discussion Papers 467, Institute for the Study of Labor (IZA).
    2. Saiz, Albert, 2007. "Immigration and housing rents in American cities," Journal of Urban Economics, Elsevier, vol. 61(2), pages 345-371, March.
    3. Dobra, Alexandra, 2009. "Principal concerns concentrating on the costs and benefits of immigration in developed countries," MPRA Paper 16817, University Library of Munich, Germany.
    4. Dobra, Alexandra, 2009. "Identifying the key issues focusing on the costs and benefits of immigration in developed countries," MPRA Paper 16806, University Library of Munich, Germany.
    5. Willi Leibfritz & Paul O'Brien & Jean-Christophe Dumont, 2003. "Effects of Immigration on Labour Markets and Government Budgets - An Overview," CESifo Working Paper Series 874, CESifo Group Munich.

    More about this item

    Keywords

    France; Immigration; International migration; labor market dynamics; cointegration; unemployment; unemployment rate; employment; job creation; unemployed;

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