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Are Immigrants Competing with Natives in the Italian Labour Market? The Employment Effect

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Author Info

  • Venturini, Alessandra

    ()
    (University of Turin)

  • Villosio, Claudia

    ()
    (Collegio Carlo Alberto)

Abstract

Gavosto, Venturini, Villosio (1999) find that the impact of foreign workers on the wage of natives was positive. Such a result was partly to be expected, and therefore the effect of immigrants on native employment is analyzed here. Two aspects of the unemployment experience are taken into account: i) displacement risk, measured by the probability of moving from employment into unemployment; ii) job-search effectiveness measured by the probability of moving from unemployment into employment within one year. The quarterly Labour Force Survey data (ISTAT) from 1993 to 1997 was used. The transition probabilities depend on two sets of independent variables at time t: the individual characteristics and the external conditions of the market. A probit model was applied for repeated-cross-sections on “specific” local areas in order to control for possible autocorrelation and endogeneity. The results show that in the northern part of Italy, where most immigrants are located, the share of immigrants has no effect or a complementary effect on the probability of finding a job for workers looking for a new job while for people looking for a first job (the young) a negative effect is detected only in 1993 while the effect is positive in the most recent periods. For native transition from employment to unemployment a complementary effect prevails, while there is a negative effect only in the manufacturing sector in Northern Italy for 1996. This effect, however, is possibly due to other factors, i.e. the spread of temporary contracts in that area during that year.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 467.

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Length: 29 pages
Date of creation: Apr 2002
Date of revision:
Handle: RePEc:iza:izadps:dp467

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Keywords: unemployment; migration; competition; employment;

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References

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  1. Winter-Ebmer, Rudolf & Zimmermann, Klaus F., 1998. "East-West Trade and Migration: The Austro-German Case," IZA Discussion Papers 2, Institute for the Study of Labor (IZA).
  2. Zimmermann, Klaus F, 1996. "Wage and Mobility Effects of Trade and Migration," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1318, C.E.P.R. Discussion Papers.
  3. David Card, 1990. "The impact of the Mariel boatlift on the Miami labor market," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
  4. Winter-Ebmer, Rudolf & Zweimuller, Josef, 1996. "Immigration and the Earnings of Young Native Workers," Oxford Economic Papers, Oxford University Press, vol. 48(3), pages 473-91, July.
  5. Bauer, T. & Zimmermann, K., 1995. "Integrating the East: The Labor Market Effects of Immigration," Papers, American Institute for Contemporary German Studies- 5, American Institute for Contemporary German Studies-.
  6. Black,Stanley W., 1997. "Europe's Economy Looks East," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521572422.
  7. Dominique M. Gross, 1999. "Three Million Foreigners, Three Million Unemployed? Immigration and the French Labor Market," IMF Working Papers, International Monetary Fund 99/124, International Monetary Fund.
  8. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, Econometric Society, vol. 54(3), pages 679-85, May.
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Cited by:
  1. Pedro S. Martins, Matloob Piracha and José Varejão, 2013. "Do Immigrants Displace Native Workers? Evidence from Matched Panel Data," Working Papers, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research 44, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
  2. Chletsos, Michael & Roupakias, Stelios, 2012. "The impact of immigration on the greek labor market," MPRA Paper 39872, University Library of Munich, Germany.
  3. Sona Kalantaryan, 2013. "Housing Market Responses to Immigration; Evidence from Italy," RSCAS Working Papers, European University Institute 2013/83, European University Institute.
  4. Matteo Gomellini & Cormac O' Grada, 2011. "Outward and Inward Migrations in Italy: A Historical Perspective," Quaderni di storia economica (Economic History Working Papers), Bank of Italy, Economic Research and International Relations Area 08, Bank of Italy, Economic Research and International Relations Area.

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