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Immigration, Jobs and Employment Protection: Evidence from Europe

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  • Peri, Giovanni
  • D'Amuri, Francesco

Abstract

In this paper we analyze the effect of immigrants on native jobs in fourteen Western European countries. We test whether the inflow of immigrants in the period 1996-2007 decreased employment rates and/or if it altered the occupational distribution of natives with similar education and age. We find no evidence of the first but significant evidence of the second: immigrants took “simple†(manual-routine) type of occupations and natives moved, in response, toward more “complex†(abstract-communication) jobs. The results are robust to the use of an IV strategy based on past settlement of different nationalities of immigrants across European countries. We also document the labor market flows through which such a positive reallocation took place: immigration stimulated job creation, and the complexity of jobs offered to new native hires was higher relative to the complexity of destructed native jobs. Finally, we find evidence that the occupation reallocation of natives was significantly larger in countries with more flexible labor laws. This tendency was particularly strong for less educated workers.

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Bibliographic Info

Paper provided by Institute of European Studies, UC Berkeley in its series Institute of European Studies, Working Paper Series with number qt9rp2j8m1.

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Date of creation: 30 Jun 2010
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Handle: RePEc:cdl:bineur:qt9rp2j8m1

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Related research

Keywords: Arts and Humanities; Social and Behavioral Sciences; Immigration; Task specialization; European Labor Markets;

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References

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  1. Patricia Cort�s & Jos� Tessada, 2011. "Low-Skilled Immigration and the Labor Supply of Highly Skilled Women," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 88-123, July.
  2. Giovanni Peri & Chad Sparber, 2008. "Task Specialisation, Immigration and Wages," Development Working Papers 252, Centro Studi Luca d\'Agliano, University of Milano.
  3. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004. "A Meta-Analytic Assessment of the Effect of Immigration on Wages," Tinbergen Institute Discussion Papers 04-134/3, Tinbergen Institute.
  4. Christian Dustmann & Tommaso Frattini & Ian Preston, 2008. "The Effect of Immigration along the Distribution of Wages," CReAM Discussion Paper Series 0803, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  5. George J. Borjas & Lawrence F. Katz, 2007. "The Evolution of the Mexican-Born Workforce in the United States," NBER Chapters, in: Mexican Immigration to the United States, pages 13-56 National Bureau of Economic Research, Inc.
  6. George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1335-1374, November.
  7. Docquier, Frederic & Ozden, Caglar & Peri, Giovanni, 2011. "The wage effects of immigration and emigration," Policy Research Working Paper Series 5556, The World Bank.
  8. David Card, 2009. "Immigration and Inequality," American Economic Review, American Economic Association, vol. 99(2), pages 1-21, May.
  9. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The Skill Content Of Recent Technological Change: An Empirical Exploration," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1279-1333, November.
  10. Libertad Gonzalez & Francesc Ortega, 2008. "How do Very Open Economies Absorb Large Immigration Flows? Recent Evidence from Spanish Regions," Development Working Papers 248, Centro Studi Luca d\'Agliano, University of Milano.
  11. Christian Dustmann & Albrecht Glitz & Tommaso Frattini, 2008. "The labour market impact of immigration," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 478-495, Autumn.
  12. Alan S. Blinder, 2006. "Preparing America’s Workforce: Are We Looking in the Rear-View Mirror?," Working Papers 67, Princeton University, Department of Economics, Center for Economic Policy Studies..
  13. Daron Acemoglu & David Autor, 2010. "Skills, Tasks and Technologies: Implications for Employment and Earnings," NBER Working Papers 16082, National Bureau of Economic Research, Inc.
  14. Ortega, Francesc & Peri, Giovanni, 2011. "The Aggregate Effects of Trade and Migration: Evidence from OECD Countries," IZA Discussion Papers 5604, Institute for the Study of Labor (IZA).
  15. Joseph Altonji & David Card, 1989. "The Effects of Immigration on the Labor Market Outcome of Less-Skilled Natives," Working Papers 636, Princeton University, Department of Economics, Industrial Relations Section..
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Citations

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Cited by:
  1. Ortega, Francesc & Polavieja, Javier G., 2012. "Labor-market exposure as a determinant of attitudes toward immigration," Labour Economics, Elsevier, vol. 19(3), pages 298-311.
  2. de la Rica, Sara & Glitz, Albrecht & Ortega, Francesc, 2013. "Immigration in Europe: Trends, Policies and Empirical Evidence," IZA Discussion Papers 7778, Institute for the Study of Labor (IZA).
  3. Christian Dustmann & Tommaso Frattini, 2011. "Immigration: The European Experience," Development Working Papers 326, Centro Studi Luca d\'Agliano, University of Milano, revised 27 Dec 2011.
  4. Labanca, Claudio, 2014. "The effects of a temporary migration shock. The case of the Arab Spring migration toward Italy," University of California at San Diego, Economics Working Paper Series qt8m49f3qb, Department of Economics, UC San Diego.
  5. Frattini, T. (Tommaso), 2012. "GINI DP 44: Immigration and Inequality in Europe," GINI Discussion Papers 44, AIAS, Amsterdam Institute for Advanced Labour Studies.
  6. Isabell Koske & Jean-Marc Fournier & Isabelle Wanner, 2012. "Less Income Inequality and More Growth – Are They Compatible? Part 2. The Distribution of Labour Income," OECD Economics Department Working Papers 925, OECD Publishing.
  7. Bryan Caplan, 2012. "Why Should We Restrict Immigration?," Cato Journal, Cato Journal, Cato Institute, vol. 32(1), pages 5-24, Winter.
  8. Stephan Brunow & Bastian Stockinger, 2013. "Establishments' and Regions' Cultural Diversity as a Source of Innovation: Evidence from Germany," Norface Discussion Paper Series 2013022, Norface Research Programme on Migration, Department of Economics, University College London.

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