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Are Foreign Migrants More Assimilated Than Native Ones?

  • Faini, Riccardo

    (University of Rome Tor Vergata)

  • Strom, Steinar

    ()

    (University of Oslo)

  • Venturini, Alessandra

    ()

    (University of Turin)

  • Villosio, Claudia

    ()

    (Collegio Carlo Alberto)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4639.

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Length: 35 pages
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4639
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  1. Dustmann, Christian & Fabbri, Francesca, 2000. "Language Proficiency and Labour Market Performance of Immigrants in the UK," CEPR Discussion Papers 2487, C.E.P.R. Discussion Papers.
  2. Brücker, Herbert & Fachin, Stefano & Venturini, Alessandra, 2009. "Do Foreigners Replace Native Immigrants? Evidence from a Panel Cointegration Analysis," IZA Discussion Papers 4438, Institute for the Study of Labor (IZA).
  3. Borjas, George J, 1992. "Ethnic Capital and Intergenerational Mobility," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 123-50, February.
  4. Borjas, George J & Bratsberg, Bernt, 1996. "Who Leaves? The Outmigration of the Foreign-Born," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 165-76, February.
  5. Per-Anders Edin & Magnus Gustavsson, 2008. "Time Out of Work and Skill Depreciation," ILR Review, Cornell University, ILR School, vol. 61(2), pages 163-180, January.
  6. David Card, 2005. "Is the New Immigration Really So Bad?," NBER Working Papers 11547, National Bureau of Economic Research, Inc.
  7. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
  8. Del Boca, Daniela & Venturini, Alessandra, 2003. "Italian Migration," IZA Discussion Papers 938, Institute for the Study of Labor (IZA).
  9. Michael A. Shields & Stephen Wheatley Price, 2002. "The English language fluency and occupational success of ethnic minority immigrant men living in English metropolitan areas," Journal of Population Economics, Springer, vol. 15(1), pages 137-160.
  10. Christian Dustmann & Arthur Van Soest, 2002. "Language and the earnings of immigrants," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(3), pages 473-492, April.
  11. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence from the UK," British Journal of Industrial Relations, London School of Economics, vol. 45(2), pages 236-256, 06.
  12. Husted, L. & Nielsen, H.S. & Rosholm, M. & Smith, N., 2000. "Employment and Wage Assimilation of Male First Generation Immigrants in Denmark," Papers 00-01, Centre for Labour Market and Social Research, Danmark-.
  13. Faini, Riccardo & Galli, Giampaolo & Gennari, Pietro & Rossi, Fulvio, 1997. "An empirical puzzle: Falling migration and growing unemployment differentials among Italian regions," European Economic Review, Elsevier, vol. 41(3-5), pages 571-579, April.
  14. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
  15. Devicienti, Francesco & Maida, Agata & Pacelli, Lia, 2008. "The resurrection of the Italian wage curve," Economics Letters, Elsevier, vol. 98(3), pages 335-341, March.
  16. 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.
  17. Cutler, David M & Glaeser, Edward L, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 827-72, August.
  18. Michèle V. K. Belot & Timothy J. Hatton, 2012. "Immigrant Selection in the OECD," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(4), pages 1105-1128, December.
  19. Constant, Amelie F. & Massey, Douglas S., 2002. "Self-Selection, Earnings, and Out-Migration: A Longitudinal Study of Immigrants to Germany," IZA Discussion Papers 672, Institute for the Study of Labor (IZA).
  20. Hatton, Timothy J. & Leigh, Andrew, 2007. "Immigrants Assimilate as Communities, Not Just as Individuals," IZA Discussion Papers 2538, Institute for the Study of Labor (IZA).
  21. Luigi Cannari & Francesco Nucci & Paolo Sestito, 2000. "Geographic labour mobility and the cost of housing: evidence from Italy," Applied Economics, Taylor & Francis Journals, vol. 32(14), pages 1899-1906.
  22. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence," CReAM Discussion Paper Series 0702, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  23. Dustmann, Christian, 2003. "Return migration, wage differentials, and the optimal migration duration," European Economic Review, Elsevier, vol. 47(2), pages 353-369, April.
  24. Andrea Gavosto & Alessandra Venturini & Claudia Villosio, 1999. "Do Immigrants Compete with Natives?," LABOUR, CEIS, vol. 13(3), pages 603-621, 09.
  25. Lubotsky, D., 2000. "Chutes or Ladders? A Longitudinal Analysis of Immigrant Earnings," Papers 195, Princeton, Woodrow Wilson School - Development Studies.
  26. Alessandra Venturini & Claudia Villosio, 2008. "Labour-market assimilation of foreign workers in Italy," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 518-542, Autumn.
  27. Chiswick, Barry R, 1991. "Speaking, Reading, and Earnings among Low-Skilled Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 149-70, April.
  28. Andersson, Fredrik & Burgess, Simon & Lane, Julia, 2009. "Do as the Neighbors Do: The Impact of Social Networks on Immigrant Employment," IZA Discussion Papers 4423, Institute for the Study of Labor (IZA).
  29. repec:rsc:rsceui:2008/39 is not listed on IDEAS
  30. Rooth, Dan-Olof & Saarela, Jan, 2007. "Selection in migration and return migration: Evidence from micro data," Economics Letters, Elsevier, vol. 94(1), pages 90-95, January.
  31. Alessandra VENTURINI & Claudia VILLOSIO, 2006. "Labour market effects of immigration into Italy: An empirical analysis," International Labour Review, International Labour Organization, vol. 145(1-2), pages 91-118, 03.
  32. Fertig, Michael & Schurer, Stefanie, 2007. "Labour Market Outcomes of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias," IZA Discussion Papers 2915, Institute for the Study of Labor (IZA).
  33. Ali Mansoor & Bryce Quillin, 2007. "Migration and Remittances : Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 6920.
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