Do Foreigners Replace Native Immigrants? Evidence from a Panel Cointegration Analysis
AbstractThis paper examines the impact of the immigration of foreigners on domestic labour mobility. Since David Card's seminal study on the regional labour market impact of the Mariel Boatlift it is controversial whether domestic labour mobility equilibrates economic conditions across cities and regions. However, there is little or no evidence that natives leave destinations where migrants tend to cluster. In this paper we reconcile the existing evidence by taking another route. We analyze whether the immigration of foreigners replaces domestic mobility from poor to rich regions. We focus on Italy, which is characterized by market differences in earnings between the North and the South. Based on a panel cointegration approach we exploit the variance of international and internal migration over time for identifying potential displacement effects. The main finding is that, conditional on unemployment and wage differentials, the share of foreign workers in the labour force of the destination regions discourages internal labour mobility significantly. As a consequence, spatial correlation studies which use the variance of the foreigner share across region for identifying the wage and employment effects of immigration, tend to understate the actual immigration impact.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4438.
Length: 32 pages
Date of creation: Sep 2009
Date of revision:
Publication status: published in: Economic Modelling, 2010, 2011, 28 (3), 1078 - 1089
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-10 (All new papers)
- NEP-LAB-2009-10-10 (Labour Economics)
- NEP-MIG-2009-10-10 (Economics of Human Migration)
- NEP-URE-2009-10-10 (Urban & Real Estate Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Steinar Strøm & Alessandra Venturini & Claudia Villosio, 2013. "Wage assimilation: migrants versus natives and foreign migrants versus internal migrants," RSCAS Working Papers 2013/30, European University Institute.
- Peter Huber & Gabriele Tondl, 2012.
"Migration and Regional Convergence in the European Union,"
WIFO Working Papers
- Peter Huber & Gabriele Tondl, 2012. "Migration and regional convergence in the European Union," Empirica, Springer, vol. 39(4), pages 439-460, November.
- Gabriele Tondl & Peter Huber, 2011. "Migration and Regional Convergence in the European Union," ERSA conference papers ersa11p1761, European Regional Science Association.
- Sauro Mocetti & Carmine Porello, 2010.
"How does immigration affect native internal mobility? New evidence from Italy,"
Temi di discussione (Economic working papers)
748, Bank of Italy, Economic Research and International Relations Area.
- Mocetti, Sauro & Porello, Carmine, 2010. "How does immigration affect native internal mobility? New evidence from Italy," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 427-439, November.
- Alessandra Venturini, 2012. "Methodological Aspects of Research on Flows Human Capital Flows: A survey," RSCAS Working Papers carim2012/01, European University Institute.
- Faini, Riccardo & Strom, Steinar & Venturini, Alessandra & Villosio, Claudia, 2009.
"Are Foreign Migrants More Assimilated Than Native Ones?,"
IZA Discussion Papers
4639, Institute for the Study of Labor (IZA).
- Riccardo Faini & Steiner Strom & Alessandra Venturini & Claudia Villosio, 2009. "Are Foreign Migrants more Assimilated than Native Ones?," LABORatorio R. Revelli Working Papers Series 96, LABORatorio R. Revelli, Centre for Employment Studies.
- Francesca Di Iorio & Stefano Fachin, 2011. "A sieve bootstrap range test for poolability in dependent cointegrated panels," DSS Empirical Economics and Econometrics Working Papers Series 2011/2, Centre for Empirical Economics and Econometrics, Department of Statistics, "Sapienza" University of Rome.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.