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Immigration and Occupations in Europe

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Author Info

  • Francesco D'Amuri

    ()
    (Bank of Italy and ISER, University of Essex)

  • Giovanni Peri

    ()
    (University of California, Davis and NBER)

Abstract

In this paper we analyze the effect of immigrants on natives' job specialization in Western Europe. We test whether the inflow of immigrants changes employment rates or the chosen occupation of natives with similar education and age. We find no evidence of the first and strong evidence of the second: immigrants take more manual-routine type of occupations and push natives towards more abstract-complex jobs, for a given set of observable skills. We also find some evidence that this occupation reallocation is larger in countries with more flexible labor laws. As abstract-complex tasks pay a premium over manual-routine ones, we can evaluate the positive effect of such reallocation on the wages of native workers. Accounting for the total change in Complex/Non Complex task supply from natives and immigrants we find that immigration does not change much the relative compensation of the two types of tasks but it promotes the specialization of natives into the first type.

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Bibliographic Info

Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 1026.

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Date of creation: Oct 2010
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Handle: RePEc:crm:wpaper:1026

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Related research

Keywords: immigration; task specialization; European labor markets;

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References

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  1. Christian Dustmann & Tommaso Frattini & Ian P. Preston, 2013. "The Effect of Immigration along the Distribution of Wages," Review of Economic Studies, Oxford University Press, vol. 80(1), pages 145-173.
  2. Giuseppe Carone, 2005. "Long-term labour force projections for the 25 EU Member States: A set of data for assessing the economic impact of ageing," European Economy - Economic Papers 235, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  3. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, Elsevier.
  4. Giovanni Peri & Chad Sparber, 2008. "Task Specialisation, Immigration and Wages," Development Working Papers 252, Centro Studi Luca d\'Agliano, University of Milano.
  5. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
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Cited by:
  1. Michaela Trax & Stephan Brunow & Jens Suedekum, 2012. "Cultural diversity and plant-level productivity," CReAM Discussion Paper Series 1223, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  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.

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