Cookies?
Library Header Image
LSE Research Online LSE Library Services

The impact of immigration on the local labor market outcomes of blue collar workers: panel data evidence

Ortega, Javier and Verdugo, Gregory (2015) The impact of immigration on the local labor market outcomes of blue collar workers: panel data evidence. CEP discussion paper (CEPDP1333). Centre for Economic Performance (CEP), London, UK.

[img]
Preview
PDF - Published Version
Download (622kB) | Preview

Abstract

Using a large administrative French panel data set for 1976-2007, we examine how low- educated immigration affects the wages, employment, occupations and locations of blue-collar native workers. The natives in the sample are initially in occupations heterogeneous in the presence of immigrants, which might reflect a different degree of competition with low-educated immigrants. We first show that larger immigration inflows into locations are accompanied by larger outflows of negatively selected natives from these locations. At the same time, larger immigrant inflows into occupations come with larger outflows of positively selected natives towards occupations with less routine tasks. While we find no negative impact on employment, there is substantial evidence that immigration lowers the median annual wages of natives. The estimated negative effects are also much larger in cross-section than in estimates controlling for composition effect, which is consistent with the idea that endogenous changes in occupation and location attenuate the impact of immigration on natives’ wages. We also find much larger wage decreases for workers initially in non-tradable sectors and more particularly in the construction sector, which are much less likely to upgrade their occupation or change location in response to immigration inflows.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/
Additional Information: © 2015 The Authors
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HT Communities. Classes. Races
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.
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 25 Feb 2015 10:23
Last Modified: 05 Aug 2019 09:33
Projects: Labour Markets Programme (CEP)
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/61073

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics