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Immigration and the Occupational Choice of Natives: a Factor Proportions Approach

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  • Ortega, J.
  • Verdugo, G.

Abstract

This paper evaluates the impact of immigration on the labor market outcomes of natives in France over the period 1962-1999. Combining large (up to 25%) extracts from six censuses and data from Labor Force Surveys, we exploit the variation in the immigrant share across education/experience cells and over time to identify the impact of immigration. In the Borjas (2003) specification, we find that a 10% increase in immigration increases native wages by 3%. However, as the number of immigrants and the number of natives are positively and strongly correlated across cells, the immigrant share may not be a good measure of the immigration shock. When the log of natives and the log of immigrants are used as regressors instead, the impact of immigration on natives’ wages is still positive but much smaller, and natives’ wages are negatively related to the number of natives. To understand this asymmetry and the positive impact of immigration on wages, we explore the link between immigration and the occupational distribution of natives within education/experience cells. Our results suggest that immigration leads to the reallocation of natives to better-paid occupations within education/experience cells.

Suggested Citation

  • Ortega, J. & Verdugo, G., 2011. "Immigration and the Occupational Choice of Natives: a Factor Proportions Approach," Working papers 335, Banque de France.
    • Handle: RePEc:bfr:banfra:335
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    Cited by:

    1. Hippolyte d'Albis & Ekrame Boubtane & Dramane Coulibaly, 2016. "Immigration Policy and Macroeconomic Performance in France," Annals of Economics and Statistics, GENES, issue 121-122, pages 279-308.
    2. Anthony Edo & Farid Toubal, 2015. "Selective Immigration Policies and Wages Inequality," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 160-187, February.
    3. Battiston, Diego, 2013. "The impact of immigration on the labour market: Evidence from 20 years of cross-border migration to Argentina," MPRA Paper 52424, University Library of Munich, Germany.
    4. Luca Marchiori & Patrice Pieretti & Benteng Zou, 2018. "Immigration, Occupational Choice and Public Employment," Annals of Economics and Statistics, GENES, issue 131, pages 83-116.
    5. Wu, Wei-ping & Chen, Zi-gui & Yang, Dong-xiao, 2020. "Do internal migrants crowd out employment opportunities for urban locals in China?—Reexamining under the skill stratification," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 537(C).
    6. Edo Anthony, 2015. "The Impact of Immigration on Native Wages and Employment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(3), pages 1151-1196, July.
    7. Sanchis-Guarner, Rosa, 2014. "First-come first-served: identifying the demand effect of immigration inflows on house prices," LSE Research Online Documents on Economics 58341, London School of Economics and Political Science, LSE Library.
    8. Chassamboulli, Andri & Palivos, Theodore, 2010. ""Give me your Tired, your Poor," so I can Prosper: Immigration in Search Equilibrium," MPRA Paper 32379, University Library of Munich, Germany.
    9. Moreno-Galbis, Eva & Tritah, Ahmed, 2016. "The effects of immigration in frictional labor markets: Theory and empirical evidence from EU countries," European Economic Review, Elsevier, vol. 84(C), pages 76-98.
    10. Shanfei Zhang, 2023. "The externality impact of internal migration in China: Linear and nonlinear approaches," French Stata Users' Group Meetings 2023 11, Stata Users Group.
    11. Anthony Edo, 2013. "The Impact of Immigration on Native Wages and Employment," Post-Print halshs-00881131, HAL.

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    More about this item

    Keywords

    Immigration; Impact; 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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