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Does Immigration Raise Blue and White Collar Wages of Natives? The Case of Italy

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  • Stefano Staffolani
  • Enzo Valentini

Abstract

This paper analyses both theoretically and empirically the effects of immigration on the wage rate of native workers. There is rare evidence in empirical literature that immigration generates a fall in the wages of manual workers. By hypothesizing an economic system where advanced firms buy an intermediate good from traditional firms, which employ manual workers in both clean and dirty tasks, the latter being more disliked by native workers, we present a theoretical model that justifies these results. We conclude that native skilled wages always increase whereas native unskilled wages can both increase or decrease with immigration. An empirical analysis of the Italian labour market follows, showing that native workers' wages always rise with immigration. Copyright 2010 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd.

Suggested Citation

  • Stefano Staffolani & Enzo Valentini, 2010. "Does Immigration Raise Blue and White Collar Wages of Natives? The Case of Italy," LABOUR, CEIS, vol. 24(3), pages 295-310, September.
  • Handle: RePEc:bla:labour:v:24:y:2010:i:3:p:295-310
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    References listed on IDEAS

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    1. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
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    Cited by:

    1. Vincenzo Marinello & Deborah Gervasi, 2016. "Migration Flows And Labour Market In The Italian System: Comparative Analysis Between The North And South Italy," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - Italian Review of Economics, Demography and Statistics, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 70(2), pages 81-92, April-Jun.
    2. repec:bdi:workqs:qse_08 is not listed on IDEAS
    3. repec:spr:epolit:v:34:y:2017:i:3:d:10.1007_s40888-017-0064-4 is not listed on IDEAS
    4. William Betz & Nicole Simpson, 2013. "The effects of international migration on the well-being of native populations in Europe," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-21, December.
    5. Matteo Gomellini & Cormac O' Grada, 2011. "Outward and Inward Migrations in Italy: A Historical Perspective," Quaderni di storia economica (Economic History Working Papers) 08, Bank of Italy, Economic Research and International Relations Area.
    6. Labanca, Claudio, 2016. "The Effects of a Temporary Migration Shock: Evidence from the Arab Spring Migration through Italy," University of California at San Diego, Economics Working Paper Series qt1fz17847, Department of Economics, UC San Diego.
    7. Labanca, Claudio, 2014. "The effects of a temporary migration shock. The case of the Arab Spring migration toward Italy," University of California at San Diego, Economics Working Paper Series qt8m49f3qb, Department of Economics, UC San Diego.
    8. Peri, Giovanni & Romiti, Agnese & Rossi, Mariacristina, 2015. "Immigrants, domestic labor and women's retirement decisions," Labour Economics, Elsevier, vol. 36(C), pages 18-34.
    9. de la Rica, Sara & Glitz, Albrecht & Ortega, Francesc, 2013. "Immigration in Europe: Trends, Policies and Empirical Evidence," IZA Discussion Papers 7778, Institute for the Study of Labor (IZA).
    10. Ivan Etzo & Carla Massidda & Paolo Mattana & Romano Piras, 2017. "The impact of immigration on output and its components: a sectoral analysis for Italy at regional level," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(3), pages 533-564, December.
    11. Peri, Giovanni & Romiti, Agnese & Rossi, Mariacristina, 2013. "Immigrants, Household Production and Women's Retirement," IZA Discussion Papers 7549, Institute for the Study of Labor (IZA).

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