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With a little help from abroad: The effect of low-skilled immigration on the female labour supply

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  • Barone, Guglielmo
  • Mocetti, Sauro

Abstract

We examine whether and how the inflow of female immigrants who specialize in household production affects the labour supply of Italian women. To identify the causal effect, we exploit the family reunification motives and network effects (i.e., the tendency of newly arriving female immigrants to settle in places where males of the same country already live) which is used as an instrument for the geographical distribution of female foreign workers. We find that when the number of immigrants who provide household services is higher, native Italian women spend more time at work (intensive margin) without affecting their labour force participation (extensive margin). This impact is concentrated on highly skilled women whose time has a higher opportunity cost. These results also hold after a battery of robustness checks. We present some further evidence that is also consistent with the idea that the impact works through substitution in household work rather than complementarities in the production sector. Finally, we show that immigration arises as a substitute to publicly provided welfare services, although this phenomenon raises concerns regarding the fairness and sustainability of this private and informal welfare model.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 18 (2011)
Issue (Month): 5 (October)
Pages: 664-675

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Handle: RePEc:eee:labeco:v:18:y:2011:i:5:p:664-675

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Web page: http://www.elsevier.com/locate/labeco

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Keywords: Immigration Female labour supply Household production;

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  1. Alessandra Venturini & Claudia Villosio, 2004. "Labour Market Effects of Immigration: an Empirical Analysis Based on Italian Data," CHILD Working Papers wp17_04, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
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Cited by:
  1. Osea Giuntella, 2012. "Do immigrants squeeze natives out of bad schedules? Evidence from Italy," IZA Journal of Migration, Springer, vol. 1(1), pages 1-21, December.
  2. Marchetti, Sabrina & Piazzalunga, Daniela & Venturini, Alessandra, 2013. "Costs and Benefits of Labour Mobility between the EU and the Eastern Partnership Countries Country Study: Italy," IZA Discussion Papers 7635, Institute for the Study of Labor (IZA).
  3. Gabriele Morettini & Andrea F. Presbitero & Massimo Tamberi, 2012. "Determinants of international migrations to Italian provinces," Economics Bulletin, AccessEcon, vol. 32(2), pages 1604-1617.
  4. Kahanec, Martin & Zimmermann, Klaus F. & Kureková, Lucia Mytna & Biavaschi, Costanza, 2013. "Report No. 56: Labour Migration from EaP Countries to the EU – Assessment of Costs and Benefits and Proposals for Better Labour Market Matching," IZA Research Reports 56, Institute for the Study of Labor (IZA).

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