IDEAS home Printed from https://ideas.repec.org/p/ira/wpaper/201822.html
   My bibliography  Save this paper

“The Impact of Immigration on Native Employment: Evidence from Italy”

Author

Listed:
  • Stefano Fusaro

    () (Universitat de Barcelona & AQR-IREA.)

  • Enrique López-Bazo

    () (Universitat de Barcelona & AQR-IREA.)

Abstract

Whether host countries economically benefit or not from immigration is a longstanding debate. In this paper, by taking advantage of the consistent variation of foreign-born workers' settlements across local labor market, we investigate the impact of immigration on native employment in Italy over the period 2009-2017. Both the country and the time span considered represent an interesting novelty that adds a further piece of evidence to the existing literature. Despite the fact that immigration has recently become a major issue, the studies on the impact of immigration into Italy are indeed relatively scarce. In addition, the peculiar institutional framework of Italy, that plays a crucial role in the extent to which local labor markets are able to absorb immigration-induced supply shocks, makes this analysis particularly relevant. Likewise, the period analyzed is of extreme interest since it is characterized by the combination of the economic downturn and by an unprecedented increase of the migratory in inflows. Overall, the results contradict the belief that immigrants \take away jobs from natives" and present a scenario in which foreign-born workers have an average negligible impact on native employment opportunities. Consistently with the canonical model of immigration however, when distinguishing the native population by education levels, the results indicate a positive impact on high-educated natives and a strong negative one on low-educated. Nevertheless, after controlling for immigrants’ “skill-downgrading” and for natives' over-education,the negative impact estimated for the latter experiences a consistent reduction.

Suggested Citation

  • Stefano Fusaro & Enrique López-Bazo, 2018. "“The Impact of Immigration on Native Employment: Evidence from Italy”," IREA Working Papers 201822, University of Barcelona, Research Institute of Applied Economics, revised Sep 2018.
  • Handle: RePEc:ira:wpaper:201822
    as

    Download full text from publisher

    File URL: http://www.ub.edu/irea/working_papers/2018/201822.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jaeger, David A & Ruist, Joakim & Stuhler, Jan, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    2. Joan Llull, 2018. "Immigration, Wages, and Education: A Labour Market Equilibrium Structural Model," Review of Economic Studies, Oxford University Press, vol. 85(3), pages 1852-1896.
    3. Emanuele Forlani & Elisabetta Lodigiani & Concetta Mendolicchio, 2015. "Impact of Low-Skilled Immigration on Female Labour Supply," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 452-492, April.
    4. Farré Lidia & González Libertad & Ortega Francesc, 2011. "Immigration, Family Responsibilities and the Labor Supply of Skilled Native Women," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-48, June.
    5. repec:bla:brjirl:v:55:y:2017:i:4:p:751-777 is not listed on IDEAS
    6. Mocetti, Sauro & Porello, Carmine, 2010. "How does immigration affect native internal mobility? New evidence from Italy," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 427-439, November.
    7. Mette Foged & Giovanni Peri, 2016. "Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data," American Economic Journal: Applied Economics, American Economic Association, vol. 8(2), pages 1-34, April.
    8. Michael A. Clemens & Jennifer Hunt, 2017. "The Labor Market Effects of Refugee Waves: Reconciling Conflicting Results," NBER Working Papers 23433, National Bureau of Economic Research, Inc.
    9. Joseph G. Altonji & David Card, 1991. "The Effects of Immigration on the Labor Market Outcomes of Less-skilled Natives," NBER Chapters, in: Immigration, Trade, and the Labor Market, pages 201-234, National Bureau of Economic Research, Inc.
    10. repec:wsi:wschap:9789814719902_0003 is not listed on IDEAS
    11. Giovanni Peri & Chad Sparber, 2016. "Task Specialization, Immigration, and Wages," World Scientific Book Chapters, in: The Economics of International Migration, chapter 3, pages 81-115, World Scientific Publishing Co. Pte. Ltd..
    12. Joan Llull, 2018. "The Effect of Immigration on Wages: Exploiting Exogenous Variation at the National Level," Journal of Human Resources, University of Wisconsin Press, vol. 53(3), pages 608-662.
    13. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, july-dece.
    14. Christian Dustmann & Tommaso Frattini & Ian P. Preston, 2013. "The Effect of Immigration along the Distribution of Wages," Review of Economic Studies, Oxford University Press, vol. 80(1), pages 145-173.
    15. Alessia Matano & Paolo Naticchioni, 2017. "The Extent of Rent Sharing along the Wage Distribution," British Journal of Industrial Relations, London School of Economics, vol. 55(4), pages 751-777, December.
    16. Jason Anastasopoulos & George J. Borjas & Gavin G. Cook & Michael Lachanski, 2018. "Job Vacancies, the Beveridge Curve, and Supply Shocks: The Frequency and Content of Help-Wanted Ads in Pre- and Post-Mariel Miami," NBER Working Papers 24580, National Bureau of Economic Research, Inc.
    17. Christian Dustmann & Albrecht Glitz & Tommaso Frattini, 2008. "The labour market impact of immigration," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 478-495, Autumn.
    18. repec:wsi:wschap:9789814719902_0005 is not listed on IDEAS
    19. Labanca, Claudio, 2016. "The Effects of a Temporary Migration Shock: Evidence from the Arab Spring Migration through Italy," University of California at San Diego, Economics Working Paper Series qt1fz17847, Department of Economics, UC San Diego.
    20. Basso, Gaetano & Peri, Giovanni, 2015. "The Association between Immigration and Labor Market Outcomes in the United States," IZA Discussion Papers 9436, Institute of Labor Economics (IZA).
    21. S. Longhi & P. Nijkamp & J. Poot, 2010. "Joint impacts of immigration on wages and employment: review and meta-analysis," Journal of Geographical Systems, Springer, vol. 12(4), pages 355-387, December.
    22. Francesco D'Amuri & Giovanni Peri, 2016. "Immigration, Jobs, And Employment Protection: Evidence From Europe Before And During The Great Recession," World Scientific Book Chapters, in: The Economics of International Migration, chapter 5, pages 153-185, World Scientific Publishing Co. Pte. Ltd..
    23. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    24. Chassamboulli, Andri & Palivos, Theodore, 2013. "The impact of immigration on the employment and wages of native workers," Journal of Macroeconomics, Elsevier, vol. 38(PA), pages 19-34.
    25. Daniela del Boca & Alessandra Venturini, 2001. "Italian Migration," CHILD Working Papers wp26_01, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    26. Joan Monras, 2015. "Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis," Sciences Po Economics Discussion Papers 2015-04, Sciences Po Departement of Economics.
    27. Christian Dustmann & Albrecht Glitz, 2015. "How Do Industries and Firms Respond to Changes in Local Labor Supply?," Journal of Labor Economics, University of Chicago Press, vol. 33(3), pages 711-750.
    28. Gordon Hanson & Craig McIntosh, 2016. "Is the Mediterranean the New Rio Grande? US and EU Immigration Pressures in the Long Run," Journal of Economic Perspectives, American Economic Association, vol. 30(4), pages 57-82, Fall.
    29. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
    30. Baum-Snow, Nathaniel & Ferreira, Fernando, 2015. "Causal Inference in Urban and Regional Economics," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 3-68, Elsevier.
    31. Christian Dustmann & Uta Schönberg & Jan Stuhler, 2016. "The Impact of Immigration: Why Do Studies Reach Such Different Results?," Journal of Economic Perspectives, American Economic Association, vol. 30(4), pages 31-56, Fall.
    32. Barone, Guglielmo & Mocetti, Sauro, 2011. "With a little help from abroad: The effect of low-skilled immigration on the female labour supply," Labour Economics, Elsevier, vol. 18(5), pages 664-675, October.
    33. Michael Clemens & Jennifer Hunt, 2017. "The Labor Market Effects of Refugee Waves: Reconciling Conflicting Results - Working Paper 455," Working Papers 455, Center for Global Development, revised 19 Jul 2017.
    34. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(4), pages 1335-1374.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Immigration; Employment; Local Labor Markets; Shift-Share; Bartik Instrument; Italian Provinces. JEL classification:J15; J61; R23.;

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ira:wpaper:201822. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alicia García). General contact details of provider: http://edirc.repec.org/data/feubaes.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.