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The Impact of Immigration on Native Wages and Employment

Abstract

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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Keywords: Immigration; wage rigidities; employment; naturalization.;

Find related papers by JEL classification:

  • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
  • 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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  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. 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.
  3. 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.
  4. David Card & Thomas Lemieux, 2000. "Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis," NBER Working Papers 7655, National Bureau of Economic Research, Inc.
  5. 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).
  6. Javier Ortega & Gregory Verdugo, 2011. "Immigration and the Occupational Choice of Natives: A Factor Proportions Approach," CEP Discussion Papers dp1043, Centre for Economic Performance, LSE.
  7. 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.
  8. 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.
  9. Amelie Constant & Annabelle Krause & Ulf Rinne & Klaus F. Zimmermann, 2010. "Reservation Wages of First and Second Generation Migrants," Discussion Papers of DIW Berlin 1089, DIW Berlin, German Institute for Economic Research.
  10. 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.
  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. 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.
  13. Denis Fougere & Mirna Safi, 2009. "Naturalization and employment of immigrants in France (1968-1999)," International Journal of Manpower, Emerald Group Publishing, vol. 30(1/2), pages 83-96, May.
  14. Sa, Filipa, 2008. "Does Employment Protection Help Immigrants? Evidence from European Labor Markets," IZA Discussion Papers 3414, Institute for the Study of Labor (IZA).
  15. 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).
  16. 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.
  17. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, October.
  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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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Is fear of immigration fueled by facts or ignorance?
    by nawmsayn in ZeeConomics on 2015-01-01 18:59:44

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