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

Author

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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 des Ponts ParisTech - 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 des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

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.

Suggested Citation

  • Sara Signorelli, 2020. "Do Skilled Migrants Compete with Native Workers? Analysis of a Selective Immigration Policy," PSE Working Papers halshs-01983071, HAL.
    • Handle: RePEc:hal:psewpa:halshs-01983071
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01983071v3
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    References listed on IDEAS

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    3. Illing, Hannah, 2023. "Crossing Borders: Labor Market Effects of European Integration," IZA Discussion Papers 15930, Institute of Labor Economics (IZA).

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    Keywords

    Immigration; Employment; Wage; Occupations; France;
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