Does Immigration Raise Blue and White Collar Wages of Natives? The Case of Italy
AbstractThis paper analyses both theoretically and empirically the effects of immigration on the wage rate of native workers. There is rare evidence in empirical literature that immigration generates a fall in the wages of manual workers. By hypothesizing an economic system where advanced firms buy an intermediate good from traditional firms, which employ manual workers in both clean and dirty tasks, the latter being more disliked by native workers, we present a theoretical model that justifies these results. We conclude that native skilled wages always increase whereas native unskilled wages can both increase or decrease with immigration. An empirical analysis of the Italian labour market follows, showing that native workers' wages always rise with immigration. Copyright 2010 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by CEIS in its journal LABOUR.
Volume (Year): 24 (2010)
Issue (Month): 3 (09)
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- Peri, Giovanni & Romiti, Agnese & Rossi, Mariacristina, 2013. "Immigrants, Household Production and Women's Retirement," IZA Discussion Papers 7549, Institute for the Study of Labor (IZA).
- Sara de la Rica & Albretch Glitz & Francesc Ortega, 2013.
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- Matteo Gomellini & Cormac O' Grada, 2011. "Outward and Inward Migrations in Italy: A Historical Perspective," Quaderni di storia economica (Economic History Working Papers) 08, Bank of Italy, Economic Research and International Relations Area.
- Betz, William & Simpson, Nicole B., 2013. "The Effects of International Migration on the Well-Being of Native Populations in Europe," IZA Discussion Papers 7368, Institute for the Study of Labor (IZA).
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