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Immigrant earnings in the Italian labour market

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Author Info

  • Antonio Accetturo

    ()
    (Bank of Italy, Milan Branch)

  • Luigi Infante

    ()
    (Bank of Italy, Economic and Financial Statistics Department)

Abstract

The aim of this paper is to assess the relationship between individual skills and labour market performance of immigrants residing in Lombardy during the period 2001-2005. We use a recent dataset collected by the NGO ISMU, which includes information on individual characteristics and the legal status of each immigrant. Our results show that returns on schooling are positive and range from 0.8 per cent to 0.9 per cent, a figure that is much lower than the one estimated for native Italians. This result is robust to a number of specifications and tests. In particular, it is not influenced by the legal status of the alien or by a possible self-selection in the labour supply. Moreover, although more talented immigrants tend to self-select in the Lombardy region compared with the other Italian regions, their return on schooling remains low compared with natives. We also show that a certain heterogeneity exists across educational levels and countries of origin: immigrants from Eastern Europe are better able to exploit their human capital, especially when they hold a university degree, while the school-wage profile of Latin Americans and Asians is basically flat. Finally, there is some evidence of a cohort effect in migration, but this tends to impact on the return on experience rather than on the return on schooling.

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Bibliographic Info

Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Temi di discussione (Economic working papers) with number 695.

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Date of creation: Dec 2008
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Handle: RePEc:bdi:wptemi:td_695_08

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Keywords: Immigration; return on schooling; return on experience;

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Cited by:
  1. Strom, Steinar & Venturini, Alessandra & Villosio, Claudia, 2013. "Wage Assimilation: Migrants versus Natives and Foreign Migrants versus Internal Migrants," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201341, University of Turin.
  2. 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.
  3. Esteban Sanromà & Raúl Ramos & Hipólito Simón, 2009. "Immigrant wages in the Spanish labour market: does the origin of human capital matter?," Working Papers 2009/8, Institut d'Economia de Barcelona (IEB).
  4. Giovanni Mastrobuoni & Paolo Pinotti, 2014. "The Ups and Downs in Women's Employment: Shifting Composition or Behavior from 1970 to 2010?," Upjohn Working Papers and Journal Articles 14-212, W.E. Upjohn Institute for Employment Research.
  5. Dell'Aringa, Carlo & Lucifora, Claudio & Pagani, Laura, 2012. "A "Glass-Ceiling" Effect for Immigrants in the Italian Labour Market?," IZA Discussion Papers 6555, Institute for the Study of Labor (IZA).
  6. Antonio Accetturo & Luigi Infante, 2013. "Skills or culture? An analysis of the decision to work by immigrant women in Italy," IZA Journal of Migration, Springer, vol. 2(1), pages 1-21, December.
  7. Giovanni Mastrobuoni & Paolo Pinotti, 2011. "Migration Restrictions and Criminal Behavior: Evidence from a Natural Experiment," Carlo Alberto Notebooks 208, Collegio Carlo Alberto.
  8. Giovanni Mastrobuoni & Paolo Pinotti, 2011. "Legal status of immigrants and criminal behavior: evidence from a natural experiment," Temi di discussione (Economic working papers) 813, Bank of Italy, Economic Research and International Relations Area.
  9. Giovanni Mastrobuoni & Paolo Pinotti, 2012. "Legal status and the criminal activity of immigrants," Working Papers 052, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.

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