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Who stays and who leaves? Immigration and the selection of natives across locations

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  • Javier Ortega
  • Gregory Verdugo

Abstract

We study the impact of local immigration inflows on natives’ wages using a large French administrative panel from 1976 to 2007. We show that local immigration inflows are followed by reallocations of blue-collar natives across commuting zones. Because these reallocations vary with the initial occupation, and blue-collar location movers have wages below the blue-collar average, controlling for changes in local composition is crucial to assess how wages adjust to immigration. Immigration temporarily lowers the wages of blue-collar workers, with unskilled workers experiencing larger losses. Location movers lose more than stayers in terms of daily wages but move to locations with cheaper housing.

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  • Javier Ortega & Gregory Verdugo, 2022. "Who stays and who leaves? Immigration and the selection of natives across locations," Journal of Economic Geography, Oxford University Press, vol. 22(2), pages 221-260.
    • Handle: RePEc:oup:jecgeo:v:22:y:2022:i:2:p:221-260.
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    Cited by:

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    2. Amior, Michael & Stuhler, Jan, 2023. "Immigration, Monopsony and the Distribution of Firm Pay," IZA Discussion Papers 16692, Institute of Labor Economics (IZA).
    3. Peter Haan & Izabela Wnuk, 2024. "The Effect of Migration on Careers of Natives: Evidence from Long-term Care," Discussion Papers of DIW Berlin 2070, DIW Berlin, German Institute for Economic Research.
    4. Edo, Anthony & Özgüzel, Cem, 2023. "The impact of immigration on the employment dynamics of European regions," Labour Economics, Elsevier, vol. 85(C).
    5. Schmutz, Benoît & Verdugo, Gregory, 2023. "Do elections affect immigration? Evidence from French municipalities," Journal of Public Economics, Elsevier, vol. 218(C).
    6. Haan, Peter & Wnuk, Izabela, 2024. "The Effect of Migration on Careers of Natives: Evidence from Long-Term Care," IZA Discussion Papers 16749, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Immigration; wages; employment; France;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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