Léa MARCHAL, Guzmán OURENS, Giulia SABBADINI
When Immigrants Meet Exporters: A Reassessment of the Immigrant Wage Gap ~ submitted
We use French employer-employee data to reassess the wage gap between native and foreign workers. We find that the wage gap varies with the export intensity of the firm and the occupation of the worker. A model with heterogeneous firms and workers shows that our findings are consistent with white-collar immigrants capturing an informational rent. The evidence supports this mechanism. First, we show that the wage gap is positively correlated with the complexity of the firm export activity. Second, we show that wages react to changes in export intensity when the export destination coincides with the origin of foreign workers.
CES Working Paper (2023) ~ New version using Portuguese data available upon request.
Clément NEDONCELLE, Léa MARCHAL, Amandine AUBRY, Jérôme HÉRICOURT
The names of the authors appear in random order.
Does Immigration Affect Native Wages? A Meta-Analysis ~ R&R at Labour Economics
The impact of immigration on native workers’ wages has been a long-standing debate in labour economics. This meta-analysis synthesises findings from 88 studies published between 1985 and 2023, providing a comprehensive assessment of reduced-form estimates of the wage effect of immigration. Our results align with the existing literature, showing that the average wage effect is centred around zero, with substantial heterogeneity across studies. We highlight the critical role of contexts and methodological choices in shaping wage estimates. In particular, we find that shift-share instrumental variables correct for an upward bias of the OLS. Our findings emphasise the need for replication studies and greater transparency in methodological choices.
KCG Working Paper (2024) ~ New version available upon request and soon as a CES working paper.
Jerg GUTMANN, Léa MARCHAL, Betül SIMSEK
Women’s Rights and the Gender Migration Gap ~ R&R at World Development
This is the first global study of how institutionally entrenched gender discrimination affects the gender migration gap using data on 158 origin and 37 destination countries over the period 1961-2019. We estimate a gravity equation derived from a RUM model of migration that accounts for migrants’ gender. Instrumental variable estimates indicate that increasing gender equality in economic or political rights generally deepens the gap, i.e., it reduces female emigration relative to that of men. Studying heterogeneity across income levels, we find that higher-income countries drive this average effect. In contrast, increased gender equality in rights reduces the gender migration gap in lower-income countries by facilitating female emigration.
ILE Working Paper (2023) ~ Article on The Conversation FR (May 2023)
Léa MARCHAL, Claire NAIDITCH, Betül SIMSEK
From Dollars to Departures: Donor vs. Non-Donor Effects of Foreign Aid on Migration ~ submitted
This is the first global study that quantifies the transmission channels through which foreign aid impacts migration to donor countries. We estimate a gravity framework derived from a RUM model, using OECD data from 2011 to 2019, and an instrumentation strategy to infer causality. We distinguish between the donor- and non-donor-specific channels by including multilateral aid into the model. We find evidence that aid donated by a country increases migration to that country through a donor-specific information channel. If this channel were the only one at play, a 1% increase in bilateral aid per capita would induce a 0.55% increase in the migration rate to the donor country. We also find a non-donor-specific impact of aid on migration from the richer origin countries equal to 0.02%.
LEM Working Paper (2023)
Léa MARCHAL, Claire NAIDITCH, Martin VALDEZ, Adnan SERIC
Unleashing Potential: Foreign Workers and Direct Exports
This paper studies how skilled foreign workers affect firms’ export mode. We build a model with heterogeneous firms, incorporating trade intermediaries and foreign workers, and analyse how these workers affect firms’ choice to export directly, indirectly or not at all. We show that foreign workers help firms relax productivity constraints to export, both directly and indirectly. This pro-trade effect is larger for highly productive firms that export directly. Using the 2010 UNIDO Viet Nam Investor Survey, we find evidence of the pro-trade effect of skilled foreign workers and their asymmetric impact across firms of different sizes.
LEM Working Paper (2023) ~ New version using Portuguese data available soon.
Farida ABDELSALAM, Léa MARCHAL, Frauke STEGLICH
Human Rights Due Diligence and Trade: Evidence from the French Duty of Vigilance Law
Although participation in global value chains (GVCs) is widely associated with economic benefits, the sustainability of production in GVCs is increasingly controversial. As a result, several industrialized countries have introduced laws on human rights due diligence (HRDD) that mandate companies to ensure specific minimum standards for themselves and the suppliers along their value chains. Some fear that less developed countries might be displaced from global supply chains and that, thus, the goal of improving working conditions and environmental outcomes in developing countries might be missed. In this paper, we use the French HRDD legislation to analyze the impacts of such laws on firms’ trading strategies, especially with developing countries. Using French firm-customs data and a difference-in-difference approach, we explore the risk of trade diversion – the shift from high-risk to relatively low-risk trading partners regarding the risk of negative social and environmental externalities. In so doing, we explore sector, country, and relationship-specific heterogeneity and consider differences in firms’ exposure to human rights risks in their supply chains. Preliminary findings indicate no overall change in imports but a drop in imports and a reduction in the number of import markets from less developed countries.
Work in progress. Draft available soon.