IDEAS home Printed from https://ideas.repec.org/p/sef/csefwp/517.html
   My bibliography  Save this paper

Back to Black? The Impact of Regularizing Migrant Workers

Author

Listed:

Abstract

This paper provides a firm and individual level analysis of the impact on labor market outcomes of regularizing undocumented migrant workers. Using unique administrative data released by the Italian Social Security Institute, we evaluate Italy's largest ever regularization process. We employ an unexpected quasi-random auditing program to deal with firms' self-selection into treatment. Our results show that regularization has only a short-run positive impact on firm employment and no effect on firm-level wages. Nonetheless, 73.5% of regularized migrants remains within the formal Italian labor market, and we find also that legalized migrant coworkers were not affected (negatively) by the reform. Our findings highlight that high mobility of migrants to other firms, provinces and industries is an important driver of our results.

Suggested Citation

  • 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.
  • Handle: RePEc:sef:csefwp:517
    as

    Download full text from publisher

    File URL: http://www.csef.it/WP/wp517.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Neeraj Kaushal, 2006. "Amnesty Programs and the Labor Market Outcomes of Undocumented Workers," Journal of Human Resources, University of Wisconsin Press, vol. 41(3).
    2. Gianmarco I. P. Ottaviano & Giovanni Peri, 2016. "Rethinking The Effect Of Immigration On Wages," World Scientific Book Chapters,in: The Economics of International Migration, chapter 2, pages 35-80 World Scientific Publishing Co. Pte. Ltd..
    3. Catalina Amuedo-Dorantes & Cynthia Bansak & Steven Raphael, 2007. "Gender Differences in the Labor Market: Impact of IRCA," American Economic Review, American Economic Association, vol. 97(2), pages 412-416, May.
    4. Catalina Amuedo-Dorantes & Cynthia Bansak, 2011. "The Impact of Amnesty on Labor Market Outcomes: A Panel Study Using the Legalized Population Survey," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(3), pages 443-471, July.
    5. Paolo Pinotti, 2017. "Clicking on Heaven's Door: The Effect of Immigrant Legalization on Crime," American Economic Review, American Economic Association, vol. 107(1), pages 138-168, January.
    6. Casarico, Alessandra & Facchini, Giovanni & Frattini, Tommaso, 2018. "What drives the legalization of immigrants? Evidence from IRCA," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 258-273.
    7. Carlo Devillanova & Francesco Fasani & Tommaso Frattini, 2014. "Employment of Undocumented Immigrants and the Prospect of Legal Status: Evidence from an Amnesty Program," CReAM Discussion Paper Series 1415, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    8. Rita Almeida & Pedro Carneiro, 2012. "Enforcement of Labor Regulation and Informality," American Economic Journal: Applied Economics, American Economic Association, vol. 4(3), pages 64-89, July.
    9. Gaetano Basso & Francesco D'Amuri & Giovanni Peri, 2018. "Immigrants, Labor Market Dynamics and Adjustment to Shocks in the Euro Area," NBER Working Papers 25091, National Bureau of Economic Research, Inc.
    10. Giovanni Mastrobuoni & Paolo Pinotti, 2015. "Legal Status and the Criminal Activity of Immigrants," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 175-206, April.
    11. 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.
    12. Andri Chassambouli & Giovanni Peri, 2015. "The Labor Market Effects of Reducing the Number of Illegal Immigrants," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 18(4), pages 792-821, October.
    13. Cobb-Clark, Deborah A & Shiells, Clinton R & Lowell, B Lindsay, 1995. "Immigration Reform: The Effects of Employer Sanctions and Legalization on Wages," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 472-498, July.
    14. Monras, Joan & Vázquez-Grenno, Javier & Elias Moreno, Ferran, 2017. "Understanding the Effects of Legalizing Undocumented Immigrants," IZA Discussion Papers 10687, Institute for the Study of Labor (IZA).
    15. Christian Dustmann & Francesco Fasani & Biagio Speciale, 2017. "Illegal Migration and Consumption Behavior of Immigrant Households," Journal of the European Economic Association, European Economic Association, vol. 15(3), pages 654-691.
    16. Brian C. Cadena & Brian K. Kovak, 2016. "Immigrants Equilibrate Local Labor Markets: Evidence from the Great Recession," American Economic Journal: Applied Economics, American Economic Association, vol. 8(1), pages 257-290, January.
    17. Michael A. Clemens & Ethan G. Lewis & Hannah M. Postel, 2017. "Immigration Restrictions as Active Labor Market Policy: Evidence from the Mexican Bracero Exclusion," NBER Working Papers 23125, National Bureau of Economic Research, Inc.
    18. David Card & Giovanni Peri, 2016. "Immigration Economics by George J. Borjas: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1333-1349, December.
    19. repec:aea:aecrev:v:108:y:2018:i:6:p:1468-87 is not listed on IDEAS
    20. Amuedo-Dorantes, Catalina & Bansak, Cynthia, 2011. "The Impact of Amnesty on Labor Market Outcomes: A Panel Study Using the Legalized Population Survey," IZA Discussion Papers 5576, Institute for the Study of Labor (IZA).
    21. Pia Orrenius & Madeline Zavodny, 2003. "Do amnesty programs reduce undocumented immigration? Evidence from Irca," Demography, Springer;Population Association of America (PAA), vol. 40(3), pages 437-450, August.
    22. De Arcangelis, Giuseppe & Di Porto, Edoardo & Santoni, Gianluca, 2015. "Migration, labor tasks and production structure," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 156-169.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Migration; Legalization; Shadow Economy; Tax Compliance; Policy Evaluation;

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sef:csefwp:517. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lia Ambrosio). General contact details of provider: http://edirc.repec.org/data/cssalit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.