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Moving to Segregation: Evidence from 8 Italian cities

Author

Listed:
  • Tito Boeri

    (IGIER-Bocconi University, CEPR, fRDB and IZA)

  • Marta De Philippis

    (LSE and fRDB)

  • Eleonora Patacchini

    (Universita’ di Roma La Sapienza, CEPR, EIEF and IZA)

  • Michele Pelizzari

    (IGIER-Bocconi University, fRDB and IZA)

Abstract

We use a new dataset and a novel identification strategy to analyze the effects on labor market outcomes of residential segregation of migrants in 8 Italian cities. Our data are representative of the population of both legal and illegal migrants, allow us to measure segregation at the very local level (the block) and include measures of housing prices, commuting costs and migrants’ linguistic ability. We find evidence that migrants who reside in areas with a high concentration of non-Italians are less likely to be employed compared to similar migrants who reside in less segregated areas. In our preferred specification, a 10 percentage points increase in residential segregation reduces the probability of being employed by 7 percentage points or about 8% over the average. Additionally, we also show that this effect emerges only above a critical threshold of 15-20% of migrants over the total local population, below which there is no statistically detectable effect. Contrary to common wisdom, in our data migrants seem to be positively selected into segregated areas. A simple matching model with heterogeneous workers and endogenous sorting into heterogeneous locations rationalizes our findings and is supported by additional empirical results.

Suggested Citation

  • Tito Boeri & Marta De Philippis & Eleonora Patacchini & Michele Pelizzari, 2010. "Moving to Segregation: Evidence from 8 Italian cities," EIEF Working Papers Series 1109, Einaudi Institute for Economics and Finance (EIEF), revised Apr 2011.
  • Handle: RePEc:eie:wpaper:1109
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    References listed on IDEAS

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    Cited by:

    1. Christian Dustmann & Francesco Fasani & Biagio Speciale, 2017. "Illegal Migration and Consumption Behavior of Immigrant Households," Journal of the European Economic Association, European Economic Association, vol. 15(3), pages 654-691.
    2. Eve Caroli & Mathilde Godard, 2013. "Does Job Insecurity Deteriorate Health ? A Causal Approach for Europe," Working Papers 2013-13, Center for Research in Economics and Statistics.
    3. Alex Bryson & Giambattista Rossi & Rob Simmons, 2012. "Why Are Migrants Paid More?," CEP Discussion Papers dp1134, Centre for Economic Performance, LSE.
    4. Barone, Guglielmo & D'Ignazio, Alessio & de Blasio, Guido & Naticchioni, Paolo, 2016. "Mr. Rossi, Mr. Hu and politics. The role of immigration in shaping natives' voting behavior," Journal of Public Economics, Elsevier, vol. 136(C), pages 1-13.
    5. Patacchini, Eleonora & Zenou, Yves, 2012. "Ethnic networks and employment outcomes," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 938-949.
    6. Jordi Jofre-Monseny & Pilar Sorribas-Navarro & Javier Vázquez-Grenno, 2016. "Immigration and local spending in social services: evidence from a massive immigration wave," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(6), pages 1004-1029, December.
    7. Tommaso Colussi, 2013. "Migrant Networks and Job Search Outcomes: Evidence from Displaced Workers," Working Papers 706, Queen Mary University of London, School of Economics and Finance.
    8. repec:dau:papers:123456789/13646 is not listed on IDEAS
    9. Marianna Battaglia & Lara Lebedinski, 2014. "The Curse of Low Aspirations: Remedial Education and Perceived Returns to Education of Roma People," Working Papers. Serie AD 2014-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    10. Picard, Pierre M. & Zenou, Yves, 2015. "Urban Spatial Structure, Employment and Social Ties: European versus American Cities," IZA Discussion Papers 9166, Institute for the Study of Labor (IZA).
    11. Barone, Guglielmo & D'Ignazio, Alessio & de Blasio, Guido & Naticchioni, Paolo, 2014. "Mr. Rossi, Mr. Hu and Politics: The Role of Immigration in Shaping Natives' Political Preferences," IZA Discussion Papers 8228, Institute for the Study of Labor (IZA).
    12. Alessandro Innocenti & Francesca Lorini & Chiara Rapallini, 2014. "Ethnic Heterogeneity, Voting Partecipation and Local Economic Growth. The Case of Belgium," Working Papers - Economics wp2014_03.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    13. Accetturo, Antonio & Manaresi, Francesco & Mocetti, Sauro & Olivieri, Elisabetta, 2014. "Don't stand so close to me: The urban impact of immigration," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 45-56.
    14. Riccardo Borgoni & Giacomo Degli Antoni & Marco Faillo & Alessandra Michelangeli, 2017. "Preferences for living in homogenous communities and cooperation: a new methodological approach combining the hedonic price model and a field experiment," Econometica Working Papers wp62, Econometica.
    15. Simone Schüller, 2016. "Ethnic enclaves and immigrant economic integration," IZA World of Labor, Institute for the Study of Labor (IZA), pages 287-287, August.

    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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