In this paper, we estimate how increasing levels of migrants and women in French firms affect earnings. Our analysis speaks to theories on demographic changes and wages. For example, some social scientists contend that increasing the labor pool through the entry of new workers will depress wages. Sociologists, more keen to emphasize power and social status, have debated whether minority groups represent a threat to dominant interests or have power in numbers in the workplace. Finally, demographic groups may unequally affect employees by their class position. Using panelized linked employer-employee data and fixed effects estimates on all French employees, we test these predictions. Across our sample, we find the proportion of migrants reduces wages for migrants and natives alike while the proportion of women increases wages for men and women. Our most salient findings, however, show demographic changes are mediated around social class. The proportion of both migrants and women increases wages for managers/professionals and has either a limited or a negative effect for workers. These class differences hold true regardless of someone’s native or gender status.
Speakers: Olivier Godechot, Mirna Safi and Matthew Soener**
**University of Illinois