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Immigration and Manufacturing In Italy.Evidence from the 2000s

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Author Info

  • Giuseppe De Arcangelis

    ()
    (Dipartimento di Scienze Sociali ed Economiche, Sapienza University of Rome)

  • Edoardo Di Porto

    ()
    (DISES, University of Naples Federico II)

  • Gianluca Santoni

    ()
    (Institute of Economics, Scuola Superiore Sant'Anna, Pisa, Italy)

Abstract

This tests the effect of an increase in the migration presence (over population) on manufacturing firms' performance at the local level. The model is estimated for the Ital- ian economy during the recent years of rapid and varied migration (a threefold increase in the 1995-2006 and the presence of 189 nationalities). Firm's performance is mea- sured with common indexes (sales per worker, production per worker and value added per worker) by aggregating individual firm data at different levels. In particular, we construct measures for both a representative (average) province-sector firm and a representative (average) province firm. By means of the sector data we are able to estimate the impact of migrants on high- and low-skill sectors, both in the level and in relative terms. We also consider two dimensions of migrants heterogeneity (in terms of characteristics of nationalities) in order to approximate the effect of high- and low-skill migrants. Our results show that migrants' presence in the province positively affects firm's performance: a doubling of the migration ratio to provincial population raises by about 10 per cent sales per worker and production per worker on average. However, this increase is unevenly distributed and favors low-skill versus high-skill sectors: sectors like Food and Beverages and Furniture show an increase between 13% and 15% when the migration rate doubles. Moreover, on the labor supply side, an increase in proxied relatively low-skill migrants favors low-skill sectors.

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Bibliographic Info

Paper provided by Sapienza University of Rome, DISS in its series Working Papers with number 1/14.

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Date of creation: Mar 2014
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Handle: RePEc:saq:wpaper:1/14

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Related research

Keywords: Sector Analysis; Rybczynski Effect; International Migration.;

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References

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  1. Antonio Accetturo & Matteo Bugamelli & Andrea Lamorgese, 2012. "Welcome to the machine: firms' reaction to low-skilled immigration," Temi di discussione (Economic working papers) 846, Bank of Italy, Economic Research and International Relations Area.
  2. Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "Rethinking the Effects of Immigration on Wages," NBER Working Papers 12497, National Bureau of Economic Research, Inc.
  3. David Card, 2007. "How Immigration Affects U.S. Cities," CReAM Discussion Paper Series 0711, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  4. George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1335-1374, November.
  5. Hanson, Gordon H. & Slaughter, Matthew J., 2002. "Labor-market adjustment in open economies: Evidence from US states," Journal of International Economics, Elsevier, vol. 57(1), pages 3-29, June.
  6. George J. Borjas & Lawrence F. Katz, 2007. "The Evolution of the Mexican-Born Workforce in the United States," NBER Chapters, in: Mexican Immigration to the United States, pages 13-56 National Bureau of Economic Research, Inc.
  7. Gandal, Neil & Hanson, Gordon H. & Slaughter, M.J.Matthew J., 2004. "Technology, trade, and adjustment to immigration in Israel," European Economic Review, Elsevier, vol. 48(2), pages 403-428, April.
  8. Giulia BETTIN & Alessia LO TURCO & Daniela MAGGIONI, 2011. "A firm level perspective on migration," Working Papers 360, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  9. Ethan Lewis, 2011. "Immigration, Skill Mix, and Capital Skill Complementarity," The Quarterly Journal of Economics, Oxford University Press, vol. 126(2), pages 1029-1069.
  10. Borjas, George J & Freeman, Richard B & Katz, Lawrence, 1996. "Searching for the Effect of Immigration on the Labor Market," American Economic Review, American Economic Association, vol. 86(2), pages 246-51, May.
  11. 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.
  12. Liesbet Okkerse, 2008. "How To Measure Labour Market Effects Of Immigration: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 1-30, 02.
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