Immigration and Occupation in Europe

41 Pages Posted: 9 Apr 2011

See all articles by Francesco D’Amuri

Francesco D’Amuri

Bank of Italy; University of Essex - Institute for Social and Economic Research (ISER)

Giovanni Peri

University of California, Davis - Department of Economics

Date Written: October 1, 2010

Abstract

In this paper we analyze the effect of immigrants on natives’ job specialization in Western Europe. We test whether the inflow of immigrants changes employment rates or the chosen occupation of natives with similar education and age. We find no evidence of the first and strong evidence of the second: immigrants take more manual-routine type of occupations and push natives towards more abstract complex jobs, for a given set of observable skills. We also find some evidence that this occupation reallocation is larger in countries with more flexible labor laws. As abstract-complex tasks pay a premium over manual-routine ones, we can evaluate the positive effect of such reallocation on the wages of native workers. Accounting for the total change in Complex/Non Complex task supply from natives and immigrants we find that immigration does not change much the relative compensation of the two types of tasks but it promotes the specialization of natives into the first type.

Keywords: immigration, task specialization, European labor markets

JEL Classification: J24, J31, J61

Suggested Citation

D’Amuri, Francesco and Peri, Giovanni, Immigration and Occupation in Europe (October 1, 2010). Centro Studi Luca d'Agliano Development Studies Working Paper No. 302. Available at SSRN: https://ssrn.com/abstract=1804967 or http://dx.doi.org/10.2139/ssrn.1804967

Francesco D’Amuri (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

Giovanni Peri

University of California, Davis - Department of Economics ( email )

One Shields Drive
Davis, CA 95616-8578
United States
530-752-3033 (Phone)
530-752-9382 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
105
Abstract Views
846
rank
254,924
PlumX Metrics