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Immigration and Occupations in Europe

Author

Listed:
  • Francesco D’Amuri

    () (Bank of Italy and ISER, University of Essex)

  • Giovanni Peri

    () (University of California, Davis, NBER and Centro Studi Luca d’Agliano)

Abstract

In this paper we analyze the effect of immigrants on natives’ job specialization in Western Europe. We test whether the inflow of immigrants changes employment rates or the chosen occupation of natives with similar education and age. We find no evidence of the first and strong evidence of the second: immigrants take more manual-routine type of occupations and push natives towards more abstract complex jobs, for a given set of observable skills. We also find some evidence that this oc-cupation reallocation is larger in countries with more flexible labor laws. As abstract-complex tasks pay a premium over manual-routine ones, we can evaluate the positive effect of such reallocation on the wages of native workers. Accounting for the total change in Complex/Non Complex task supply from natives and immigrants we find that immigration does not change much the relative compen-sation of the two types of tasks but it promotes the specialization of natives into the first type.

Suggested Citation

  • Francesco D’Amuri & Giovanni Peri, 2010. "Immigration and Occupations in Europe," Development Working Papers 302, Centro Studi Luca d'Agliano, University of Milano, revised 03 Aug 2012.
  • Handle: RePEc:csl:devewp:302
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    File URL: http://www.dagliano.unimi.it/media/WP2010_302.pdf
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    More about this item

    Keywords

    immigration; task specialization; European labor markets;

    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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