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Immigration and Occupations in Europe

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  • Francesco D’Amuri

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

  • Giovanni Peri

    ()
    (University of California, Davis, NBER and Centro Studi Luca d’Agliano)

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    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 oc-cupation 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 compen-sation 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 Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 302.

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    Length: 41
    Date of creation: 30 Nov 2010
    Date of revision: 03 Aug 2012
    Handle: RePEc:csl:devewp:302

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    Keywords: immigration; task specialization; European labor markets;

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