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Immigration, jobs and employment protection: evidence from Europe before and during the Great Recession

Author

Listed:
  • Francesco D'Amuri

    () (Bank of Italy)

  • Giovanni Peri

    () (UC Davis)

Abstract

In this paper we analyse the impact of immigrants on the type and quantity of natives� jobs. We use data on fifteen Western European countries during the 1996-2010 period. We find that immigrants, by taking up manual-routine type of occupations pushed natives towards more �complex� (abstract and communication) jobs. This job upgrade was associated with a 0.7% increase in native wages for a doubling of the immigrants� share. These results are robust to the use of an IV strategy based on the past settlement of immigrants across European countries. The job upgrade slowed, but did not come to a halt, during the Great Recession. We also document the labour market flows behind it: the complexity of jobs offered to new native hires was greater than that of lost jobs. Finally, we find evidence that the reallocation was larger in countries with more flexible labour laws.

Suggested Citation

  • Francesco D'Amuri & Giovanni Peri, 2012. "Immigration, jobs and employment protection: evidence from Europe before and during the Great Recession," Temi di discussione (Economic working papers) 886, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_886_12
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    immigration; jobs; task specialization; employment protection laws; Europe;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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