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

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Abstract

We study the impact of local immigration inflows on natives’ wages using a large French administrative panel from 1976-2007. 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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hal-03370661 , version 1 (08-10-2021)

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  • HAL Id : hal-03370661 , version 1

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Javier Ortega, Gregory Verdugo. Who stays and who leaves? Immigration and the selection of natives across locations. 2021. ⟨hal-03370661⟩
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