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A firm level perspective on migration: the role of extra-EU workers in Italian manufacturing

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  • Giulia Bettin

    ()

  • Alessia Lo Turco

    ()

  • Daniela Maggioni

    ()

Abstract

A production-theory approach to migration is adopted in this paper to address the role of migrant workers from extra-EU countries in Italian manufacturing firms. The adoption of flexible functional forms to model firm-level technology lets us directly derive different measures of elasticity from the coefficients of the estimated production and cost functions. The use of foreign labour is shown to affect the industry composition in favour of low skill intensive sectors and the estimated cross demand elasticities confirm the complementarity between migrant and native workers found in previous studies. However, the two labour inputs prove to be substitutes in terms of the Morishima elasticity of substitution: in general, firms tend to increase the foreign labour intensity of production in response to a decline in migrants’ wage, while the migrant to domestic labour ratio responds to changes in the domestic workers’ wage only for firms in low skill intensive sectors. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Giulia Bettin & Alessia Lo Turco & Daniela Maggioni, 2014. "A firm level perspective on migration: the role of extra-EU workers in Italian manufacturing," Journal of Productivity Analysis, Springer, vol. 42(3), pages 305-325, December.
  • Handle: RePEc:kap:jproda:v:42:y:2014:i:3:p:305-325
    DOI: 10.1007/s11123-014-0390-2
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Fiorentini, Riccardo & Verashchagina, Alina, 2017. "Immigration and trade: the case study of Veneto region in Italy," 2017 Sixth AIEAA Conference, June 15-16, Piacenza, Italy 261261, Italian Association of Agricultural and Applied Economics (AIEAA).
    2. Alessandra Michelangeli & Nicola Pontarollo & Giuseppe Vittucci Marzetti, 2019. "Ethnic minority concentration: A source of productivity growth for Italian provinces?," Papers in Regional Science, Wiley Blackwell, vol. 98(1), pages 17-34, February.
    3. 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.

    More about this item

    Keywords

    Migrant workers; Output elasticity; Morishima elasticity of substitution; Translog; F22; D22; J61; L60;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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