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Immigration and Manufacturing In Italy.Evidence from the 2000s

  • Giuseppe De Arcangelis

    ()

    (Dipartimento di Scienze Sociali ed Economiche, Sapienza University of Rome)

  • Edoardo Di Porto

    ()

    (DISES, University of Naples Federico II)

  • Gianluca Santoni

    ()

    (Institute of Economics, Scuola Superiore Sant'Anna, Pisa, Italy)

This tests the effect of an increase in the migration presence (over population) on manufacturing firms' performance at the local level. The model is estimated for the Ital- ian economy during the recent years of rapid and varied migration (a threefold increase in the 1995-2006 and the presence of 189 nationalities). Firm's performance is mea- sured with common indexes (sales per worker, production per worker and value added per worker) by aggregating individual firm data at different levels. In particular, we construct measures for both a representative (average) province-sector firm and a representative (average) province firm. By means of the sector data we are able to estimate the impact of migrants on high- and low-skill sectors, both in the level and in relative terms. We also consider two dimensions of migrants heterogeneity (in terms of characteristics of nationalities) in order to approximate the effect of high- and low-skill migrants. Our results show that migrants' presence in the province positively affects firm's performance: a doubling of the migration ratio to provincial population raises by about 10 per cent sales per worker and production per worker on average. However, this increase is unevenly distributed and favors low-skill versus high-skill sectors: sectors like Food and Beverages and Furniture show an increase between 13% and 15% when the migration rate doubles. Moreover, on the labor supply side, an increase in proxied relatively low-skill migrants favors low-skill sectors.

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Paper provided by Sapienza University of Rome, DISS in its series Working Papers with number 1/14.

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Date of creation: Mar 2014
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Handle: RePEc:saq:wpaper:1/14
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  1. Massimiliano Bratti & Luca Benedictis & Gianluca Santoni, 2014. "On the pro-trade effects of immigrants," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 150(3), pages 557-594, August.
  2. Gauthier-Loiselle, Marjolaine & Hunt, Jennifer, 2009. "How Much Does Immigration Boost Innovation?," CEPR Discussion Papers 7116, C.E.P.R. Discussion Papers.
  3. 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.
  4. D'Amuri Francesco & Giovanni Peri, 2012. "Immigration, Jobs and Employment Protection: Evidence from Europe before and during the Great Recession," Working Papers 1215, University of California, Davis, Department of Economics.
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  7. David Card, 2007. "How Immigration Affects U.S. Cities," CReAM Discussion Paper Series 0711, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  8. Giovanni Peri & Gianmarco I.P. Ottaviano, 2006. "Rethinking the Effects of Immigration on Wages," Working Papers 634, University of California, Davis, Department of Economics.
  9. Nicola D. Coniglio & Giuseppe De Arcangelis & Laura Serlenga, 2009. "Intentions to Return of Clandestine Migrants: The Perverse Effect of Illegality on Skills," Review of Development Economics, Wiley Blackwell, vol. 13(4), pages 641-657, November.
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  15. Giulia Bettin & Alessia Lo Turco & Daniela Maggioni, 2012. "A Firm-Level Perspective on Migration," Development Working Papers 328, Centro Studi Luca d\'Agliano, University of Milano, revised 27 Mar 2012.
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  17. Sauro Mocetti & Carmine Porello, 2010. "How does immigration affect native internal mobility? New evidence from Italy," Temi di discussione (Economic working papers) 748, Bank of Italy, Economic Research and International Relations Area.
  18. Antonio Accetturo & Matteo Bugamelli & Andrea Lamorgese, 2012. "Welcome to the machine: firms' reaction to low-skilled immigration," Temi di discussione (Economic working papers) 846, Bank of Italy, Economic Research and International Relations Area.
  19. González, Libertad & Ortega, Francesc, 2011. "How do very open economies adjust to large immigration flows? Evidence from Spanish regions," Labour Economics, Elsevier, vol. 18(1), pages 57-70, January.
  20. George J. Borjas & Lawrence F. Katz, 2005. "The Evolution of the Mexican-Born Workforce in the United States," NBER Working Papers 11281, National Bureau of Economic Research, Inc.
  21. repec:oup:qjecon:v:126:y:2011:i:2:p:1029-1069 is not listed on IDEAS
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  23. 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.
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  25. Ethan Lewis, 2004. "How did the Miami labor market absorb the Mariel immigrants?," Working Papers 04-3, Federal Reserve Bank of Philadelphia.
  26. repec:adr:anecst:y:2010:i:97-98:p:15 is not listed on IDEAS
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