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Not Just a Work Permit: EU Citizenship and the Consumption Behavior of Documented and Undocumented Immigrants

Author

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  • Effrosyni Adamopoulou

  • Ezgi Kaya

Abstract

This paper explores the impact of the 2007 European Union enlargement on the consumption behavior of immigrant households. Using data from a unique Italian survey and a difference-in-differences approach, we find that the enlargement induced a significant consumption increase for the immigrant households from new member states both in the short- and in the medium-run. This enlargement effect cannot be attributed to the mere legalization as it concerns both undocumented and documented immigrants, albeit through different channels. Detailed information on immigrants' legal status (undocumented/documented) and sector of employment (informal/formal) allows us to shed light on the exact mechanisms. Following the enlargement, previously undocumented immigrants experienced an increase in the labor income by moving from the informal towards the formal economy, whereas immigrants who were already working legally in Italy benefitted from the increased probability of getting a permanent contract. Enhanced employment stability in turn reduced the uncertainty about future labor income leading to an increase in documented immigrants' consumption expenditure.

Suggested Citation

  • Effrosyni Adamopoulou & Ezgi Kaya, 2019. "Not Just a Work Permit: EU Citizenship and the Consumption Behavior of Documented and Undocumented Immigrants," CRC TR 224 Discussion Paper Series crctr224_2019_102, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2019_102
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    Cited by:

    1. Hammer, Luisa & Hertweck, Matthias Sebastian, 2022. "EU Enlargement and (Temporary) Migration: Effects on Labour Market Outcomes in Germany," VfS Annual Conference 2022 (Basel): Big Data in Economics 264082, Verein für Socialpolitik / German Economic Association.
    2. Joan Monràs, 2025. "Immigrant assimilation beyond the labor market," Economics Working Papers 1921, Department of Economics and Business, Universitat Pompeu Fabra.
    3. R.D. Mariani & F. C. Rosati, 2022. "Immigrant supply of marketable child care and native fertility in Italy," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 88(4), pages 503-533, December.
    4. Kaya, Ezgi, 2024. "Labour Market Performance of Immigrants: New Evidence from Linked Administrative Data," GLO Discussion Paper Series 1418, Global Labor Organization (GLO).
    5. Rama Dasi Mariani & Alessandra Pasquini & Furio Camillo Rosati, 2023. "The Immigration Puzzle in Italy: A Survey of Evidence and Facts," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(1), pages 85-116, March.
    6. Luca Pieroni & Melcior Rossello Roig, 2024. "The effect of obtaining EU citizenship in former transition economies on remittance flows," The World Economy, Wiley Blackwell, vol. 47(6), pages 2361-2399, June.
    7. Joan Monràs, 2025. "Immigrant Assimilation Beyond the Labor Market," Working Papers 1517, Barcelona School of Economics.
    8. Berlanda, Andrea & Lodigiani, Elisabetta & Tosetti, Elisa & Vittadini, Giorgio, 2024. "The impact of EU enlargement on immigrants’ mental health," Journal of Economic Behavior & Organization, Elsevier, vol. 225(C), pages 116-135.
    9. Ezgi Kaya, 2025. "Differences in labour market outcomes between immigrant and UK‐born employees: evidence from linked data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 127(4), pages 765-808, October.
    10. Pieroni, Luca & Roig, Melcior Rosselló & Salmasi, Luca & Turati, Gilberto, 2025. "Legal status and voluntary abortions by immigrants," Journal of Health Economics, Elsevier, vol. 102(C).
    11. Carrozzo, Salvatore & Lodigiani, Elisabetta & Venturini, Alessandra, 2024. "Does Migrants' Consumption of Cultural Goods Impact on Their Economic Integration? Disclosing the Culture-to-Market Pathway," IZA Discussion Papers 17307, IZA Network @ LISER.
    12. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr & Arthur Sweetman, 2020. "An introduction to the economics of immigration in OECD countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1365-1403, November.

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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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