Do Skilled Migrants Compete with Native Workers? Analysis of a Selective Immigration Policy

Sara Signorelli
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Sara Signorelli: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: In recent years high-skill immigration has been often encouraged by governments aiming to support their economy, but its impact on native workers facing a direct increase in competition is still debated. This paper addresses the question by taking advantage of a reform facilitating the hiring of foreign workers within a list of technical occupations. The analysis relies on administrative employer-employee data and applies a difference-in-differences approach. Results show that the reform was successful in boosting migrants' hires without affecting native employment. Wages decrease following the supply shift but, in contrast with the standard model predictions, do so twice as much for migrants than for natives. I find that two channels explain this differential effect: imperfect degree of substitution in production and differences in bargaining power. Finally, I use worker-level panel data to show that the additional competition does not generate native flight.

Keywords: Immigration; Employment; Wage; Occupations; France (search for similar items in EconPapers)
Date: 2020-07
New Economics Papers: this item is included in nep-int, nep-lab, nep-mig and nep-ure
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01983071v3
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:hal:psewpa:halshs-01983071

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