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Immigration and manufacturing in Italy: evidence from the 2000s

Author

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  • Giuseppe Arcangelis

    ()

  • Edoardo Porto

    ()

  • Gianluca Santoni

    ()

Abstract

This paper tests for the effect of an increase in the migration rate on manufacturing firms’ performance at the local level. The model is estimated for the Italian economy during the recent years of rapid and varied migration. We construct measures for both a representative province-sector firm and a representative province firm and estimate the impact of migrants on high- and low-tech sectors by also considering migrants heterogeneity (in terms of the characteristics of origin nationalities) in order to approximate the effect of high- and low-skill migrants. Migrants’ presence positively affects firm’s performance: a doubling of the migration ratio to provincial population raises sales per worker by 8–9 % on average. However, this increase is unevenly distributed and favors low-tech versus high-tech sectors. On the labor supply side, low-skill (primary-educated) migrants have a higher effect on firms’ performance than high-skill (tertiary-educated) migrants. Copyright Associazione Amici di Economia e Politica Industriale 2015

Suggested Citation

  • Giuseppe Arcangelis & Edoardo Porto & Gianluca Santoni, 2015. "Immigration and manufacturing in Italy: evidence from the 2000s," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(2), pages 163-187, June.
  • Handle: RePEc:spr:epolin:v:42:y:2015:i:2:p:163-187
    DOI: 10.1007/s40812-014-0005-y
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    References listed on IDEAS

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    Cited by:

    1. repec:spr:epolit:v:34:y:2017:i:3:d:10.1007_s40888-017-0064-4 is not listed on IDEAS
    2. Riccardo Fiorentini & Alina Verashchagina, 2017. "Immigration and Trade: The Case Study of Veneto Region in Italy," Working Papers 03/2017, University of Verona, Department of Economics.
    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.
    4. Stefan Seifert & Marica Valente, 2018. "An Offer that you Can't Refuse? Agrimafias and Migrant Labor on Vineyards in Southern Italy," Discussion Papers of DIW Berlin 1735, DIW Berlin, German Institute for Economic Research.

    More about this item

    Keywords

    Firm performance; Sector analysis; Rybczynski effect; International migration; F22; C25;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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