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The Effects of International Immigration on Inequality in Host Countries: the Case of Italy

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  • Giacomo DiPasquale

    (Ransom Everglades School)

Abstract

This research aims to analyze the effect of immigration on income inequality in host countries, to verify whether immigration exacerbates or reduces the existing gap among social classes. Through seemingly unrelated regressions (SUR), the paper analyzes the effect of immigration on income inequality at the subnational level in Italy (regions). A SUR is a generalization of a linear regression model that allows the use of several regression equations at the same time, with each equation having its own dependent variable. In this paper, the dependent variables of the equations are represented by within-region income inequality and between-region inequality. Furthermore, in order to assess changes in income inequality at the subnational level in Italy, the paper uses several socio-economic controls as independent variables: pre-existing income inequality and levels of unemployment, population, and attained education. The results report a negative or null effect of immigration on income inequality in Italy, while identifying pre-existing income inequality, together with high unemployment and higher education as triggers for present income inequality. The economic and the political implications of these results, and how they generate backlash against immigrants, are discussed at the end.

Suggested Citation

  • Giacomo DiPasquale, 2022. "The Effects of International Immigration on Inequality in Host Countries: the Case of Italy," Journal of International Migration and Integration, Springer, vol. 23(4), pages 1793-1824, December.
    • Handle: RePEc:spr:joimai:v:23:y:2022:i:4:d:10.1007_s12134-021-00902-5
    DOI: 10.1007/s12134-021-00902-5
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