BenFares Nolay.pdf


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II)

Data  

We  use  in  this  study  the  empirical  database  “enquête  emploi  2012”13  (labor  force  survey  
2012)  by  INSEE.  This  panel  study  furnishes  evidence  data  about  profession,  activity  per  
sex,  age,  and  nationality,  working  hours,  type  of  employment  and  contracts,  and  wages.  
The   study   was   realized   over   the   full   year   of   2012   by   interrogating   several   times   the  
individuals  concerned.  The  only  restriction  of  this  study  is  that  the  people  interrogated  
must  be  more  than  15  years  old.  
The  labor  force  survey  contains  over  560  variables  and  about  422  000  observations.  We  
choose  only  46  variables  in  order  to  conduct  our  study  (details  about  chosen  variables  in  
the  appendices).  

The  dependent  variable  
In  order  to  measure  the  impact  of  immigrants  on  the  wage  level  of  native  workers,  our  
dependent   variable   will   be   of   course   the   wage   of   native   workers.   To   keep   only   the   wage  
level  of  native’s  workers  we  discarded  all  immigrants’  wage  in  our  database.  
We  think  that  it  will  be  more  significant  to  focus  on  hourly  wage  to  measure  the  impact  
of   immigration.   We   decide   also   to   use   a   logarithm   on   our   dependent   variable,   because  
we   want   to   show   how   the   variables   selected   in   the   model   explain   the   wage   level   and  
more   especially   if   the   variable   immigration   have   a   strong   impact   or   not.   The   log   will  
allow  us  to  make  statements  about  the  impact  of  the  explanatory  variables  more  easily.  
We  define  the  variable  “hourly_wage”  and  create  “logW”  as  follow:    
𝐻𝑜𝑢𝑟𝑙𝑦𝑤𝑎𝑔𝑒 =

𝑠𝑎𝑙𝑚𝑒𝑒
 
𝑛𝑏ℎ𝑒𝑢𝑟

𝐿𝑜𝑔𝑊 = log  (ℎ𝑜𝑢𝑟𝑙𝑦𝑤𝑎𝑔𝑒)  

The  explanatory  variables  
Education  level:  
The   education   level   is   an   important   explanatory   variable   in   order   to   define   the   wage  
level   of   an   individual.   The   Human   Capital   Theory   emphasizes   that   education   and  
experience  are  the  two  main  variables  that  explain  the  wage  of  an  individual.  It’s  pretty  

 

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