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The Effect of (Mostly Unskilled) Immigration on the Innovation of Italian Regions

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  • Bratti, Massimiliano

    () (University of Milan)

  • Conti, Chiara

    () (Sapienza University of Rome)

Abstract

We use small Italian regions (i.e. provinces) to investigate the causal effect of foreign immigration on innovation during 2003-2008. Using instrumental variables estimation (based on immigrants' enclaves), we find that the overall stock of immigrants did not have any effect on innovation. However, decomposing the overall effect into the contributions of low- and high-skilled migrants shows that an increase of 1 percentage point in the share of low-skilled migrants on the population reduces patent applications by about 0.2%. By contrast, the impact of high-skilled immigrants on innovation is positive, in line with the previous literature, but cannot be precisely estimated.

Suggested Citation

  • Bratti, Massimiliano & Conti, Chiara, 2014. "The Effect of (Mostly Unskilled) Immigration on the Innovation of Italian Regions," IZA Discussion Papers 7922, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7922
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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. Jahn, Vera & Steinhardt, Max Friedrich, 2016. "Innovation and immigration — Insights from a placement policy," Economics Letters, Elsevier, vol. 146(C), pages 116-119.
    3. Labanca, Claudio, 2014. "The effects of a temporary migration shock. The case of the Arab Spring migration toward Italy," University of California at San Diego, Economics Working Paper Series qt8m49f3qb, Department of Economics, UC San Diego.
    4. Fassio, Claudio & Montobbio, Fabio & Venturini, Alessandra, 2015. "How Do Native and Migrant Workers Contribute to Innovation?," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201520, University of Turin.
    5. Alessandra Venturini, 2015. "How do Native and Migrant Workers Contribute to Innovation? A Study on France, Germany and the UK," Discussion Papers 30, Central European Labour Studies Institute (CELSI).
    6. Claudio Fassio & Alessandra Venturini, 2015. "Do native and migrant workers contribute to innovation? Patents dynamic in France, Germany and the UK," RSCAS Working Papers 2015/41, European University Institute.
    7. Fassio, Claudio & Kalantaryan, Sona & Venturini, Alessandra, 2015. "Human Resources and Innovation: Total Factor Productivity and Foreign Human Capital," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201536, University of Turin.
    8. 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.
    9. Fassio, Claudio & Kalantaryan, Sona & Venturini, Alessandra, 2015. "Human Resources and Innovation: Total Factor Productivity and Foreign Human Capital," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201536, University of Turin.

    More about this item

    Keywords

    immigration; innovation; patent applications; regions; Italy;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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