Immigration and the occupational choice of natives: a factor proportions approach

Ortega, Javier and Verdugo, Gregory (2011) Immigration and the occupational choice of natives: a factor proportions approach. CEP Discussion Papers (CEPDP1043). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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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.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2011 The Author(s)
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HC Economic History and Conditions J Political Science > JV Colonies and colonization. Emigration and immigration. International migration H Social Sciences > HD Industries. Land use. Labor
JEL classification:	J - Labor and Demographic Economics > J1 - Demographic Economics > J15 - Economics of Minorities and Races; Non-labor Discrimination J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
Date Deposited:	22 Feb 2024 15:00
Last Modified:	14 Sep 2024 04:44
URI:	http://eprints.lse.ac.uk/id/eprint/121720

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