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Dependent variable in all regression is mean log wage change of demographic group in state.
Edo (2015) uses the log mean wage rather than the mean log wage to estimate the impact of immigration on native wages.
This difference in magnitude is mainly due to the definition of the dependent variable: while Edo (2015) uses the log mean wage, the present paper uses the mean log wage.
Notes the figure plots log changes in employment share by 2002 job skill percentile rank using a locally weighted smoothing regression (bandwidth 0.75 with 100 observations), where skill percentiles are measured as the employment-weighted percentile rank of a job's mean log wage in the 2002 ESS.
Table 5 Weighted regressions by industry classification Nonunemployment exit rate Mean (log) wage Coefficient (underset {left (0.0008 right)}{-0.033} }{-0.033}t {left (0.016 right)}{-0.84}) Constant (underset {left (0.01605 right)}{0.014}) (underset {left (0.00092 right)}{2.4}) The explanatory variable in eaConstantis the proportion of self-employed recrunderset
Notes the figure plots log changes in employment share by 1995 and 2010 job skill percentile rank using a locally weighted smoothing regression (bandwidth 0.75 with 100 observations), where skill percentiles are measured as the employment-weighted percentile rank of a job's mean log wage in the 2002 ESS (a) and the 2010 ESS (b, c).
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Then the mean log wages of Canadian born workers and immigrant workers can be respectively expressed as w N = α N S ˜ N + β N 1 X ˜ N + β N 2 X ˜ N 2 + y N φ N (1).
We now compute changes in mean log wages, ∆S ist, ∆D ist, and ∆I ist separately for each major state or group of adjacent states.12 Our "data set," therefore, consists of 448 = 2 × 2 × 8 × 14 observations for 2 decadal intervals, 2 sectors (rural/urban), 8 demographic groups, and 14 states.
To do so, we run a series of regressions of state mean log-wage changes on the SDI shift variables.
I deflate the wage data using the French Consumer Price Index provided by the INSEE and compute the mean log monthly wage at the skill-cell level, as suggested in Katz and Murphy (1992) and Borjas (2003, 2012).10 As in Edo (2015), I use the sample of native workers in full-time employment (representing 96.3%% of all native workers) to have a homogenous population of workers.
In order to compute relative wages, I will follow the standard approach and use the mean of log wages (Katz and Murphy 1992; Borjas et al. 2012).
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