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Does Low Skilled Immigration Cause Human Capital Polarization? Evidence from Italian Provinces

Author

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  • Brunello, Giorgio

    (University of Padova)

  • Lodigiani, Elisabetta

    (University of Padova)

  • Rocco, Lorenzo

    (University of Padova)

Abstract

While there is a vast literature considering the labour market effects of immigration, less has been done to investigate how immigration affects the educational choices of young natives. Using Italian provincial data and an instrumental variables strategy, we show that the recent increase in the immigration of low skilled labour has produced human capital polarization, i.e. the contemporaneous increase in the share of natives with less than high school and not enrolled in school and in the share with a college degree or enrolled in college. This evidence is stronger for males than for females. We adapt the standard Card's model of educational choice and spell out under what conditions human capital polarization occurs. We estimate wage equations by gender and find that these conditions are satisfied, especially for Italian males.

Suggested Citation

  • Brunello, Giorgio & Lodigiani, Elisabetta & Rocco, Lorenzo, 2017. "Does Low Skilled Immigration Cause Human Capital Polarization? Evidence from Italian Provinces," IZA Discussion Papers 11062, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11062
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    Cited by:

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    2. Aziz Ahmed, 2019. "Impacts of Vocational Training for Socio-economic Development of Afghan Refugees in Labor Markets of Host Societies in Baluchistan," Journal of International Migration and Integration, Springer, vol. 20(3), pages 751-768, August.
    3. Ana-Maria ZAMFIR, 2017. "Urban-Rural Educational Inequalities and Human Capital Polarization in Romania," Revista romaneasca pentru educatie multidimensionala - Journal for Multidimensional Education, Editura Lumen, Department of Economics, vol. 9(3), pages 156-164, December.
    4. Deole, Sumit S. & Huang, Yue, 2020. "How do new immigration flows affect existing immigrants? Evidence from the refugee crisis in Germany," GLO Discussion Paper Series 579, Global Labor Organization (GLO).
    5. Baldoni, Edoardo & Coderoni, Silvia & Esposti, Roberto, 2018. "Immigrant workforce and labour productivity in Italian agriculture: a farm-level analysis," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 6(3), May.

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    More about this item

    Keywords

    human capital; immigration; low skilled; Italy;
    All these keywords.

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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