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What Happens to the Careers of European Workers When Immigrants "Take Their Jobs"?

Author

Listed:
  • Cattaneo, Cristina

    (Fondazione Eni Enrico Mattei (FEEM))

  • Fiorio, Carlo V.

    (University of Milan)

  • Peri, Giovanni

    (University of California, Davis)

Abstract

In this paper we use a dataset that follows a representative sample of native Europeans, resident of 11 countries, over the period 1995-2001, in order to identify the effect of inflows of immigrants on their career, employment, location and wage. We use the 1991 distribution of immigrants by nationality across European labor markets to construct an imputed inflow of the foreign-born population that is exogenous to local demand shocks. We also control for a series of fixed effects that absorb individual, country-year and sector-year effects. We find that native Europeans are more likely to upgrade their occupation to one associated with higher skills and better pay, when a larger number of immigrants enter their labor market. They are also more likely to start a self-employment activity. As a consequence of this upward mobility their income increases or stays the same in response to immigration. We find no evidence of an increased likelihood to leave employment or to leave their region of residence. These effects take place within 2 years and some persist over 4 years. Hence it appears that immigrants push native European workers on a faster career track rather than reducing their employment opportunities.

Suggested Citation

  • Cattaneo, Cristina & Fiorio, Carlo V. & Peri, Giovanni, 2013. "What Happens to the Careers of European Workers When Immigrants "Take Their Jobs"?," IZA Discussion Papers 7282, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp7282
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    References listed on IDEAS

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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Immigration, class & ideology
      by chris dillow in Stumbling and Mumbling on 2013-06-29 17:52:28
    2. Cutting waste
      by chris dillow in Stumbling and Mumbling on 2013-07-16 18:32:19
    3. Labour's cost of living problem
      by chris dillow in Stumbling and Mumbling on 2013-08-24 16:11:51
    4. Equality, growth & policy
      by chris dillow in Stumbling and Mumbling on 2014-03-05 19:13:12
    5. "British workers hit hard"
      by chris dillow in Stumbling and Mumbling on 2014-04-22 18:28:12
    6. Elites or people?
      by chris in Stumbling and Mumbling on 2016-12-01 19:13:41

    Citations

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    Cited by:

    1. Bosetti, Valentina & Cattaneo, Cristina & Verdolini, Elena, 2015. "Migration of skilled workers and innovation: A European Perspective," Journal of International Economics, Elsevier, vol. 96(2), pages 311-322.
    2. 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.
    3. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," 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 625-685, Elsevier.
    4. Mette Foged & Giovanni Peri, 2013. "Immigrants' and Native Workers: New Analysis on Longitudinal Data," NBER Working Papers 19315, National Bureau of Economic Research, Inc.
    5. Labanca, Claudio, 2020. "The effects of a temporary migration shock: Evidence from the Arab Spring migration through Italy," Labour Economics, Elsevier, vol. 67(C).
    6. 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 of Labor Economics (IZA).
    7. World Bank, "undated". "Europe and Central Asia Economic Update, October 2017," World Bank Publications - Reports 28534, The World Bank Group.
    8. Amelie F. Constant, 2014. "Do migrants take the jobs of native workers?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-10, May.
    9. Costa Daniela & Rodriguez Maria Jose, 2020. "North-North Migration and Agglomeration in the European Union 15," Working Papers 2020-07, Banco de México.

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    More about this item

    Keywords

    mobility; job upgrading; immigrants; self-employment; Europe;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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