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Are Foreign Migrants more Assimilated than Native Ones?

Author

Listed:
  • Riccardo Faini
  • Steiner Strom
  • Alessandra Venturini
  • Claudia Villosio

Abstract

The paper compares the pattern of wage assimilation of foreigners with both native immigrants and local natives in Italy, a country with large internal and international migration. This comparison, not yet exploited, yields understanding of the role played by language and knowledge of social capital. We use the administrative dataset on dependent employment (WHIP), to estimate a fixed effect model of the weekly wages of males aged 18-45 with controls for selection in return migration and unobserved heterogeneity. The three groups of workers start their careers at the same wage level but, as experience increases, the wage profiles of foreigners and natives, both immigrants and locals, diverge. A positive selection in the returns prevails, so that the foreign workers with lower wages are the most likely to stay in Italy. Also an “ethnic” skill differential emerges and a negative status dependence for those entering at low wage level.

Suggested Citation

  • Riccardo Faini & Steiner Strom & Alessandra Venturini & Claudia Villosio, 2009. "Are Foreign Migrants more Assimilated than Native Ones?," LABORatorio R. Revelli Working Papers Series 96, LABORatorio R. Revelli, Centre for Employment Studies.
  • Handle: RePEc:cca:wplabo:96
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    References listed on IDEAS

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    Cited by:

    1. Chiara Mussida & Maria Laura Parisi, 2016. "The effect of economic crisis on regional income inequality in Italy," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1614, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    2. Giulia BETTIN & Alessia LO TURCO & Daniela MAGGIONI, 2011. "A firm level perspective on migration," Working Papers 360, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    3. Christian Dustmann, 2014. "Selective Outmigration and the Estimation of Immigrants Earnings Profiles," CReAM Discussion Paper Series 1402, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    4. Marchetti, Sabrina & Piazzalunga, Daniela & Venturini, Alessandra, 2013. "Costs and Benefits of Labour Mobility between the EU and the Eastern Partnership Countries Country Study: Italy," IZA Discussion Papers 7635, Institute of Labor Economics (IZA).
    5. Del Boca, Daniela & Venturini, Alessandra, 2014. "Migration in Italy is Backing the Old Age Welfare," IZA Discussion Papers 8328, Institute of Labor Economics (IZA).
    6. Chiara Mussida & Maria Laura Parisi, 2018. "Immigrant groups’ income inequality within and across Italian regions," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(4), pages 655-671, December.

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    More about this item

    Keywords

    Migration; Assimilation; Wage differential.;
    All these keywords.

    JEL classification:

    • 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
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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