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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.;

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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. Max Friedrich Steinhardt, 2009. "The wage impact of immigration in Germany - new evidence for skill groups and occupations," Development Working Papers 273, Centro Studi Luca d'Agliano, University of Milano.
  2. 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.
  3. Gianmarco I.P. Ottaviano & Giovanni Peri, 2008. "Immigration and National Wages: Clarifying the Theory and the Empirics," NBER Working Papers 14188, National Bureau of Economic Research, Inc.
  4. 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.
  5. Bernt Bratsberg & Oddbjørn Raaum, 2011. "Immigration and Wages: Evidence from Construction," Norface Discussion Paper Series 2011016, Norface Research Programme on Migration, Department of Economics, University College London.
  6. 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.
  7. Sá, Filipa, 2011. "Does employment protection help immigrants? Evidence from European labor markets," Labour Economics, Elsevier, vol. 18(5), pages 624-642, October.
  8. 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, Oxford University Press, vol. 116(2), pages 705-746.
  9. Brücker, Herbert & Jahn, Elke J., 2009. "Migration and wage-setting: reassessing the labor market effects of migration," Kiel Working Papers 1502, Kiel Institute for the World Economy (IfW).
  10. 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.
  11. 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.
  12. 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," LSE Research Online Documents on Economics 28680, London School of Economics and Political Science, LSE Library.
  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. Ortega, J. & Verdugo, G., 2011. "Immigration and the Occupational Choice of Natives: a Factor Proportions Approach," Working papers 335, Banque de France.
  15. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, September.
  16. Felbermayr, Gabriel J. & Geis, Wido & Kohler, Wilhelm K., 2008. "Restrictive immigration policy in Germany: pains and gains foregone?," Discussion Paper Series 1: Economic Studies 2008,18, Deutsche Bundesbank, Research Centre.
  17. 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.
  18. 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).
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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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