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The Impact of Immigration on Native Wages and Employment

This paper investigates the immigration impact on native outcomes using micro-level 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 much less flexible 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 have bad employment conditions. Second, I find that natives on short-term contracts, who are less subject to wage rigidities, do experience wage losses due to immigration.

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File URL: ftp://mse.univ-paris1.fr/pub/mse/CES2013/13064.pdf
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Paper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number 13064.

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Length: 45 pages
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:mse:cesdoc:13064
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  1. Bernt Bratsberg & James F. Ragan & Zafar M. Nasir, 2002. "The Effect of Naturalization on Wage Growth: A Panel Study of Young Male Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 568-597, July.
  2. Bauer, Thomas K. & Lofstrom, Magnus & Zimmermann, Klaus F., 2000. "Immigration Policy, Assimilation of Immigrants and Natives' Sentiments towards Immigrants: Evidence from 12 OECD-Countries," IZA Discussion Papers 187, Institute for the Study of Labor (IZA).
  3. Sá, Filipa, 2011. "Does employment protection help immigrants? Evidence from European labor markets," Labour Economics, Elsevier, vol. 18(5), pages 624-642, October.
  4. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  5. Yann Algan & Christian Dustmann & Albrecht Glitz & Alan Manning, 2009. "The Economic Situation of First- and Second-Generation Immigrants in France, Germany and the United Kingdom," CEP Discussion Papers dp0951, Centre for Economic Performance, LSE.
  6. Steinhardt, Max Friedrich, 2009. "The wage impact of immigration in Germany: New evidence for skill groups and occupations," HWWI Research Papers 1-23, Hamburg Institute of International Economics (HWWI).
  7. Bernt Bratsberg & Oddbjorn Raaum, 2010. "Immigration and Wages: Evidence from Construction," CReAM Discussion Paper Series 1006, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  8. Ottaviano, Gianmarco & Peri, Giovanni, 2008. "Immigration and National Wages: Clarifying the Theory and the Empirics," CEPR Discussion Papers 6916, C.E.P.R. Discussion Papers.
  9. Constant, Amelie & Krause, Annabelle & Rinne, Ulf & Zimmermann, Klaus F, 2011. "Reservation Wages of First and Second Generation Migrants," CEPR Discussion Papers 8208, C.E.P.R. Discussion Papers.
  10. Felbermayr, Gabriel & Geis, Wido & Kohler, Wilhelm K., 2010. "Restrictive immigration policy in Germany: Pains and gains foregone?," Munich Reprints in Economics 20616, University of Munich, Department of Economics.
  11. Herbert Brücker & Elke J. Jahn, 2011. "Migration and Wage‐setting: Reassessing the Labor Market Effects of Migration," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113, pages 286-317, 06.
  12. Fougère, Denis & Safi, Mirna, 2008. "Naturalization and Employment of Immigrants in France (1968-1999)," CEPR Discussion Papers 7092, C.E.P.R. Discussion Papers.
  13. David Card & Thomas Lemieux, 2001. "Can Falling Supply Explain The Rising Return To College For Younger Men? A Cohort-Based Analysis," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 705-746, May.
  14. Michael Gerfin & Boris Kaiser, 2010. "The Effects of Immigration on Wages: An Application of the Structural Skill-Cell Approach," Diskussionsschriften dp1012, Universitaet Bern, Departement Volkswirtschaft.
  15. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
  16. Xavier Thierry, 2004. "Évolution récente de l'immigration en France et éléments de comparaison avec le Royaume-Uni," Population (french edition), Institut National d'Études Démographiques (INED), vol. 59(5), pages 725-764.
  17. Ortega, Javier & Verdugo, Gregory, 2011. "Immigration and the Occupational Choice of Natives: A Factor Proportions Approach," IZA Discussion Papers 5451, Institute for the Study of Labor (IZA).
  18. Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-21, May.
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