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Migration, Labor Tasks and Production Structure

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Abstract

We assess the effect of migrants' stock on the production structure of the Italian provinces (NUTS3) in 1995-2006. Although the investigated time span is very short, the effect is small but statistically significant: a doubling in the ratio of foreign-born residents to the province population induces a significant increase in manufactures' value added with respect to services' value added between 12 and 21 per cent. These effects are more intense when considering an increase in foreign-born populations drawn from countries more different to Italy (in terms of GDP per capita and educational attainment). These results are compatible with the reduced form of a two-sector model where we assume that production is performed with one mobile factor and two sector-specific CES labor composites of simple and complex tasks. If migrants and natives have different productivity when performing simple or complex tasks, an inflow of migrants induces production restructuring in favor of the simple-task intensive sector.

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  • Giuseppe De Arcangelis & Edoardo Di Porto & Gianluca Santoni, 2015. "Migration, Labor Tasks and Production Structure," CSEF Working Papers 390, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  • Handle: RePEc:sef:csefwp:390
    Note: A previous version of this paper circulated with the title "Migration, Production Structure and Exports"
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    Cited by:

    1. Emily Gu & Chad Sparber, 2017. "The Native-Born Occupational Skill Response to Immigration within Education and Experience Cells," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(3), pages 426-450, June.
    2. Akgündüz, Yusuf Emre & Torun, Huzeyfe, 2020. "Two and a half million Syrian refugees, tasks and capital intensity," Journal of Development Economics, Elsevier, vol. 145(C).
    3. Stefania Borelli & Giuseppe De Arcangelis & Majlinda Joxhe, 2019. "Migration and Production Structure in Europe with a Labor Task Approach," Working Papers 6/19, Sapienza University of Rome, DISS.
    4. Stefania Borelli & Giuseppe De Arcangelis, 2016. "Migration, Labor Tasks and Production Structure in Europe," Working Papers 4/16, Sapienza University of Rome, DISS.
    5. Riccardo Fiorentini & Alina Verashchagina, 2017. "Immigration and Trade: The Case Study of Veneto Region in Italy," Working Papers 03/2017, University of Verona, Department of Economics.
    6. Mariani, Rama Dasi & Pasquini, Alessandra & Rosati, Furio C., 2020. "Elementary Facts about Immigration in Italy: What Do We Know about Immigration and Its Impact?," IZA Discussion Papers 13181, Institute of Labor Economics (IZA).
    7. Giuseppe De Arcangelis & Majlinda Joxhe & Stefania Borelli, 2019. "A preliminary assessment of the effects of migration on the production structure in Europe: A labor task approach," Economics Bulletin, AccessEcon, vol. 39(1), pages 289-294.
    8. Ivan Etzo & Carla Massidda & Paolo Mattana & Romano Piras, 2017. "The impact of immigration on output and its components: a sectoral analysis for Italy at regional level," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(3), pages 533-564, December.
    9. Dogan, Can & Akay, Gokhan H., 2019. "The role of labor endowments on industry output in the short run: Evidence from U.S industries," International Review of Economics & Finance, Elsevier, vol. 60(C), pages 281-291.
    10. Brunello, Giorgio & Lodigiani, Elisabetta & Rocco, Lorenzo, 2020. "Does low-skilled immigration increase profits? Evidence from Italian local labour markets," Regional Science and Urban Economics, Elsevier, vol. 85(C).
    11. Akgündüz, Yusuf Emre & Torun, Huzeyfe, 2018. "Two and a half million Syrian refugees, skill mix and capital intensity," GLO Discussion Paper Series 186, Global Labor Organization (GLO).
    12. Edoardo Di Porto & Enrica Maria Martino & Paolo Naticchioni, 2018. "Back to Black? The Impact of Regularizing Migrant Workers," CSEF Working Papers 517, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.

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    More about this item

    Keywords

    Rybczynski Effect; International Migration; Province Labor Markets; Specific Factor Model; Productive Tasks;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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