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Immigration and Manufacturing In Italy.Evidence from the 2000s

Listed author(s):
  • 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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File URL: http://www.diss.uniroma1.it/sites/default/files/allegati/wp_disse_01_14_dearcangelisetal.pdf
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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
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;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(3), pages 557-594, August.
  2. Jennifer Hunt & Marjolaine Gauthier-Loiselle, 2010. "How Much Does Immigration Boost Innovation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 31-56, April.
  3. 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.
  4. Borjas, George J & Freeman, Richard B & Katz, Lawrence, 1996. "Searching for the Effect of Immigration on the Labor Market," American Economic Review, American Economic Association, vol. 86(2), pages 246-251, May.
  5. Giovanni Peri & Chad Sparber, 2009. "Task Specialization, Immigration, and Wages," American Economic Journal: Applied Economics, American Economic Association, vol. 1(3), pages 135-169, July.
  6. Ethan Lewis, 2013. "Immigration and Production Technology," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 165-191, 05.
  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. Gandal, Neil & Hanson, Gordon H. & Slaughter, M.J.Matthew J., 2004. "Technology, trade, and adjustment to immigration in Israel," European Economic Review, Elsevier, vol. 48(2), pages 403-428, April.
  9. George J. Borjas & Lawrence F. Katz, 2007. "The Evolution of the Mexican-Born Workforce in the United States," NBER Chapters,in: Mexican Immigration to the United States, pages 13-56 National Bureau of Economic Research, Inc.
  10. Gianmarco I. P. Ottaviano & Giovanni Peri, 2012. "Rethinking The Effect Of Immigration On Wages," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 152-197, 02.
  11. Brunello, Giorgio & Cappellari, Lorenzo, 2008. "The labour market effects of Alma Mater: Evidence from Italy," Economics of Education Review, Elsevier, vol. 27(5), pages 564-574, October.
  12. William R. Kerr & William F. Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and U.S. Ethnic Invention," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 473-508, 07.
  13. Giulia BETTIN & Alessia LO TURCO & Daniela MAGGIONI, 2011. "A firm level perspective on migration," Working Papers 360, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  14. Hanson, Gordon H. & Slaughter, Matthew J., 2002. "Labor-market adjustment in open economies: Evidence from US states," Journal of International Economics, Elsevier, vol. 57(1), pages 3-29, June.
  15. 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.
  16. Francesco D'Amuri & Giovanni Peri, 2014. "Immigration, Jobs, And Employment Protection: Evidence From Europe Before And During The Great Recession," Journal of the European Economic Association, European Economic Association, vol. 12(2), pages 432-464, 04.
  17. Ethan Lewis, 2004. "How did the Miami labor market absorb the Mariel immigrants?," Working Papers 04-3, Federal Reserve Bank of Philadelphia.
  18. 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.
  19. Giovanni Peri, 2012. "The Effect Of Immigration On Productivity: Evidence From U.S. States," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 348-358, February.
  20. repec:adr:anecst:y:2010:i:97-98:p:15 is not listed on IDEAS
  21. 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.
  22. 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.
  23. repec:adr:anecst:y:2010:i:97-98 is not listed on IDEAS
  24. 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.
  25. Liesbet Okkerse, 2008. "How To Measure Labour Market Effects Of Immigration: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 1-30, 02.
  26. Ethan Lewis, 2011. "Immigration, Skill Mix, and Capital Skill Complementarity," The Quarterly Journal of Economics, Oxford University Press, vol. 126(2), pages 1029-1069.
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