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A Firm-Level Perspective on Migration

  • Giulia Bettin


    (Università Politecnica delle Marche)

  • Alessia Lo Turco

    (Università Politecnica delle Marche)

  • Daniela Maggioni

    (Università Politecnica delle Marche)

A production-theory approach to migration is adopted in this paper to address the role of migrant workers from extra-EU countries in Italian manufacturing production at the firm-level. The use of exible functional forms to model firm-level technology lets us directly derive different measures of elasticity from the coefficients of the estimated production and cost functions. Cross price and demand elasticities confirm the complementarity found in previous studies between migrants and natives. However, the two labour inputs prove to be substitute in terms of Morishima elasticity of substition. The use of foreign labour is shown to affect also the industry composition. We find that, ceteris paribus, had migrant labour not grown in our sample period, the weight of Low Skill intensive sectors would have been approximately 2% lower and the white to blue collars ratio would have been slightly higher than observed, even accounting for the complementarity between natives and migrants.

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Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 328.

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Length: 27
Date of creation: 27 Mar 2012
Date of revision: 27 Mar 2012
Handle: RePEc:csl:devewp:328
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  1. Libertad González Luna & Francesc Ortega, 2007. "How do very open economies adjust to large immigration flows? Recent evidence from Spanish regions," Economics Working Papers 1059, Department of Economics and Business, Universitat Pompeu Fabra.
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  4. Giovanni Peri & Chad Sparber, 2008. "Task Specialisation, Immigration and Wages," Development Working Papers 252, Centro Studi Luca d\'Agliano, University of Milano.
  5. Alexander Hijzen & Peter Wright, 2010. "Migration, trade and wages," Journal of Population Economics, Springer, vol. 23(4), pages 1189-1211, September.
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  7. Alessandra Venturini & Claudia Villosio, 2004. "Labour Market Effects of Immigration: an Empirical Analysis Based on Italian Data," CHILD Working Papers wp17_04, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  8. Jennifer Hunt, 1992. "The impact of the 1962 repatriates from Algeria on the French labor market," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(3), pages 556-572, April.
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  10. repec:oup:qjecon:v:126:y:2011:i:2:p:1029-1069 is not listed on IDEAS
  11. Malchow-Møller, Nikolaj & Munch, Jakob R. & Skaksen, Jan Rose, 2009. "Do Immigrants Take the Jobs of Native Workers?," IZA Discussion Papers 4111, Institute for the Study of Labor (IZA).
  12. Sang V Nguyen & Mary L Streitwieser, 1997. "Capital-Energy Substitution Revisted: New Evidence From Micro Data," Working Papers 97-4, Center for Economic Studies, U.S. Census Bureau.
  13. Yasar, Mahmut & Morrison Paul, Catherine J., 2008. "Capital-skill complementarity, productivity and wages: Evidence from plant-level data for a developing country," Labour Economics, Elsevier, vol. 15(1), pages 1-17, February.
  14. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, October.
  15. Wales, Terence J., 1977. "On the flexibility of flexible functional forms : An empirical approach," Journal of Econometrics, Elsevier, vol. 5(2), pages 183-193, March.
  16. Frondel, Manuel, 2004. "Empirical assessment of energy-price policies: the case for cross-price elasticities," Energy Policy, Elsevier, vol. 32(8), pages 989-1000, June.
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