A firm level perspective on migration
AbstractWe address the role of migrant workers from extra-EU countries in Italian manufacturing production at the firm-level. Cross price and demand elasticities confirm the complementarity found in previous studies between migrants and natives, which holds when native workers are split into white and blue collars. However, when measuring how the ratio of domestic to migrant (migrant to domestic) workers changes in response to a change in the migrant (domestic) wage - Morishima Elasticity of Substitution - we find that the two labour inputs are substitutes. We further analyse the effect of the use of foreign labour in manufacturing firms on the industry composition. We find that, ceteris paribus, had migrant labour not grown in our sample period, the weight of Low Skill intensive sectors would have been approximately 2% lower and the white to blue collars ratio would have been slightly higher than observed, even accounting for the complementarity between natives and migrants.
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Bibliographic InfoPaper provided by Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali in its series Working Papers with number 360.
Date of creation: Jun 2011
Date of revision:
Migrant workers; elasticity of substitution; manufacturing production technology;
Other versions of this item:
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-13 (All new papers)
- NEP-EUR-2011-07-13 (Microeconomic European Issues)
- NEP-MIG-2011-07-13 (Economics of Human Migration)
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