IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/112956.html
   My bibliography  Save this paper

Italy: No country for highly educated immigrant workers

Author

Listed:
  • d'Agostino, Giorgio
  • Pieroni, Luca
  • Scarlato, Margherita

Abstract

This paper estimates the returns of education on the first generation of immigrants in Italy and measures the education pay gap between immigrants and natives. The analysis, drawn on two comparable cross-sectional surveys conducted by the Italian Institute of Statistics in 2009, shows that an immigrant with a tertiary education degree has a 20% increase in hourly wage compared to immigrant workers with a postsecondary education degree. The absence of a legal recognition of the education degree does not produce any return to education for the immigrants. Relevant differences in educational returns are found between immigrants and natives, with an education wage gap of approximately 61%. These results shed new light on the two channels that may contribute to the wage gap between highly educated immigrants and natives in Italy. The first channel moves behind the heterogeneity of highly educated immigrants with respect to their education quality and comparability and on relevant differences in the formal process of recognition of the education degree. The second channel is linked to the job mismatch of the immigrant workforce.

Suggested Citation

  • d'Agostino, Giorgio & Pieroni, Luca & Scarlato, Margherita, 2022. "Italy: No country for highly educated immigrant workers," MPRA Paper 112956, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:112956
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/112956/1/MPRA_paper_112956.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    2. Motohiro Yogo, 2004. "Estimating the Elasticity of Intertemporal Substitution When Instruments Are Weak," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 797-810, August.
    3. Kleibergen, Frank & Paap, Richard, 2006. "Generalized reduced rank tests using the singular value decomposition," Journal of Econometrics, Elsevier, vol. 133(1), pages 97-126, July.
    4. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    5. Luigi Bonatti, 2019. "Is immigration necessary for Italy? Is it desirable?," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 152(2), pages 127-143.
    6. Lucifora, Claudio & Comi, Simona Lorena & Brunello, Giorgio, 2000. "The Returns to Education in Italy: A New Look at the Evidence," IZA Discussion Papers 130, Institute of Labor Economics (IZA).
    7. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, May.
    8. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
    9. Friedberg, Rachel M, 2000. "You Can't Take It with You? Immigrant Assimilation and the Portability of Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 221-251, April.
    10. Giles, David E. A., 1982. "The interpretation of dummy variables in semilogarithmic equations : Unbiased estimation," Economics Letters, Elsevier, vol. 10(1-2), pages 77-79.
    11. Alícia Adserà & Mariola Pytliková, 2015. "The Role of Language in Shaping International Migration," Economic Journal, Royal Economic Society, vol. 125(586), pages 49-81, August.
    12. Chiswick, Barry R. & Miller, Paul W., 2009. "The international transferability of immigrants' human capital," Economics of Education Review, Elsevier, vol. 28(2), pages 162-169, April.
    13. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Books, National Bureau of Economic Research, Inc, number beck75-1, July.
    14. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    15. George J. Borjas, 2021. "Self-Selection and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 4, pages 69-91, World Scientific Publishing Co. Pte. Ltd..
    16. L. Pieroni & G. d’Agostino & D. Lanari & M. Scarlato, 2024. "Immigrant Labour Market Outcomes: New Insights from a Lack of Language Proficiency in Italy," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 10(1), pages 293-327, March.
    17. Luigi Bonatti, 2019. "Is immigration necessary for Italy? Is it desirable?," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 127(2), pages 127-143.
    18. Aleksynska, Mariya & Tritah, Ahmed, 2013. "Occupation–education mismatch of immigrant workers in Europe: Context and policies," Economics of Education Review, Elsevier, vol. 36(C), pages 229-244.
    19. Samuel Bazzi & Michael A. Clemens, 2013. "Blunt Instruments: Avoiding Common Pitfalls in Identifying the Causes of Economic Growth," American Economic Journal: Macroeconomics, American Economic Association, vol. 5(2), pages 152-186, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bonin, Holger, 2017. "The Potential Economic Benefits of Education of Migrants in the EU," IZA Research Reports 75, Institute of Labor Economics (IZA).
    2. C. Dannemann & Erkan Goeren, 2018. "The Educational Burden of ADHD: Evidence From Student Achievement Test Scores," Working Papers V-408-18, University of Oldenburg, Department of Economics, revised Apr 2018.
    3. Huong Thu Le & Ha Trong Nguyen, 2017. "Parental health and children's cognitive and noncognitive development: New evidence from the longitudinal survey of Australian children," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 1767-1788, December.
    4. Wenjing Yu & Yiwei Qian & Cody Abbey & Huan Wang & Scott Rozelle & Lauren Ann Stoffel & Chenxu Dai, 2022. "The Role of Self-Esteem in the Academic Performance of Rural Students in China," IJERPH, MDPI, vol. 19(20), pages 1-16, October.
    5. Grundke, Robert & Moser, Christoph, 2019. "Hidden protectionism? Evidence from non-tariff barriers to trade in the United States," Journal of International Economics, Elsevier, vol. 117(C), pages 143-157.
    6. Seonho Shin, 2022. "To work or not? Wages or subsidies?: Copula-based evidence of subsidized refugees’ negative selection into employment," Empirical Economics, Springer, vol. 63(4), pages 2209-2252, October.
    7. Marc‐André Luik & Amelia Guha Thakurta & Dennis Wesselbaum, 2021. "Child health, human capital, and adult financial behavior," Health Economics, John Wiley & Sons, Ltd., vol. 30(11), pages 2722-2750, November.
    8. Vladimir Gimpelson, 2019. "Age and Wage: Stylized Facts and Russian Evidence," HSE Economic Journal, National Research University Higher School of Economics, vol. 23(2), pages 185-237.
    9. Luis Aranda & Martin Siyaranamual, 2014. "Are Smarter People Better Samaritans? Effect of Cognitive Abilities on Pro-Social Behaviors," Working Papers 2014:06, Department of Economics, University of Venice "Ca' Foscari".
    10. Atheendar S. Venkataramani, 2011. "The intergenerational transmission of height: evidence from rural Vietnam," Health Economics, John Wiley & Sons, Ltd., vol. 20(12), pages 1448-1467, December.
    11. Anna-Elisabeth Thum, 2014. "Labor Market Integration of German Immigrants and Their Children: Does Personality Matter?," SOEPpapers on Multidisciplinary Panel Data Research 723, DIW Berlin, The German Socio-Economic Panel (SOEP).
    12. Juergen Bitzer & Erkan Goeren, 2018. "Foreign Aid and Subnational Development: A Grid Cell Analysis," Working Papers V-407-18, University of Oldenburg, Department of Economics, revised Mar 2018.
    13. Jain, Apoorva & Peter, Klara Sabirianova, 2017. "Limits to Wage Growth: Understanding the Wage Divergence between Immigrants and Natives," IZA Discussion Papers 10891, Institute of Labor Economics (IZA).
    14. Zenou, Yves & Boucher, Vincent & Tumen, Semih & Vlassopoulos, Michael & Wahba, Jackline, 2020. "Ethnic Mixing in Early Childhood: Evidence from a Randomized Field Experiment and a Structural Model," CEPR Discussion Papers 15528, C.E.P.R. Discussion Papers.
    15. Joan Costa-Font & Sergi Jiménez-Martín & Cristina Vilaplana-Prieto, 2016. "Thinking of Incentivizing Care? The Effect of Demand Subsidies on Informal Caregiving and Intergenerational Transfers," Working Papers 2016-08, FEDEA.
    16. Berger, Eva M. & Fehr, Ernst & Hermes, Henning & Schunk, Daniel & Winkel, Kirsten, 2020. "The Impact of Working Memory Training on Children's Cognitive and Noncognitive Skills," IZA Discussion Papers 13338, Institute of Labor Economics (IZA).
    17. Calderón, María Cecilia & Hoddinott, John, 2011. "The Inter-Generational Transmission of Cognitive Abilities in Guatemala," IDB Publications (Working Papers) 3105, Inter-American Development Bank.
    18. Pablo Lavado & Nelson Oviedo & Hernán Ruffo, 2016. "Destruction of Cognitive and Noncognitive Skills in Adulthood," Working Papers 16-07, Centro de Investigación, Universidad del Pacífico.
    19. Flèche, Sarah & Lekfuangfu, Warn N. & Clark, Andrew E., 2021. "The long-lasting effects of family and childhood on adult wellbeing: Evidence from British cohort data," Journal of Economic Behavior & Organization, Elsevier, vol. 181(C), pages 290-311.
    20. Humburg, M., 2014. "Personality and field of study choice," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).

    More about this item

    Keywords

    Immigrant pay gap; High education; Overeducation;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:112956. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.