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The Impact of Immigration on Native Wages and Employment

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  • Anthony Edo

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

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.

Suggested Citation

  • Anthony Edo, 2013. "The Impact of Immigration on Native Wages and Employment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00881131, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00881131
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00881131
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    1. Is fear of immigration fueled by facts or ignorance?
      by nawmsayn in ZeeConomics on 2015-01-02 00:59:44

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    3. Barrera, Oscar & Bensidoun, Isabelle & Edo, Anthony, 2022. "Second-Generation Immigrants and Native Attitudes Toward Immigrants in Europe," IZA Discussion Papers 15393, Institute of Labor Economics (IZA).
    4. Stefano Fusaro & Enrique López‐Bazo, 2021. "Immigration and Native Employment. Evidence from Italian Provinces in the Aftermath of the Great Recession," Papers in Regional Science, Wiley Blackwell, vol. 100(2), pages 405-428, April.
    5. Amior, Michael & Stuhler, Jan, 2023. "Immigration, Monopsony and the Distribution of Firm Pay," IZA Discussion Papers 16692, Institute of Labor Economics (IZA).
    6. Anthony Edo & Farid Toubal, 2015. "Selective Immigration Policies and Wages Inequality," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 160-187, February.
    7. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr & Arthur Sweetman, 2020. "An introduction to the economics of immigration in OECD countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1365-1403, November.
    8. Michael Clemens, 2021. "The Fiscal Effect of Immigration: Reducing Bias in Influential Estimates," CESifo Working Paper Series 9464, CESifo.
    9. Chletsos Michael & Roupakias Stelios, 2019. "Do Immigrants Compete with Natives in the Greek Labour Market? Evidence from the Skill-Cell Approach before and during the Great Recession," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-30, April.
    10. Stefan Jestl & Sandra M. Leitner & Sebastian Leitner, 2022. "The relative impact of different forces of globalization on wage inequality: A fresh look at the EU experience," Review of International Economics, Wiley Blackwell, vol. 30(4), pages 1003-1037, September.
    11. Valentine Fays & Benoît Mahy & François Ryckx, 2024. "Do migrants displace native-born workers on the labour market? The impact of workers’ origin," LIDAM Discussion Papers IRES 2024004, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    12. Oscar Barrera & Isabelle Bensidoun & Anthony Edo, 2022. "Second-generation immigrants and native attitudes toward immigrants in Europe," Working Papers 2022-03, CEPII research center.
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    15. Edo, Anthony & Toubal, Farid, 2017. "Immigration and the gender wage gap," European Economic Review, Elsevier, vol. 92(C), pages 196-214.

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    More about this item

    Keywords

    Immigration; wage rigidities; employment; naturalization; rigidités salariales; emploi; naturalisation;
    All these keywords.

    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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