What Happens to the Careers of European Workers When Immigrants 'Take Their Jobs'?

48 Pages Posted: 6 Jun 2014

See all articles by Cristina Cattaneo

Cristina Cattaneo

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici

Carlo V. Fiorio

University of Milan - Dipartimento di Scienze Economiche, Aziendali e Statistiche

Giovanni Peri

University of California, Davis - Department of Economics

Date Written: June 5, 2014

Abstract

Following a representative longitudinal sample of native European residents, over the period 1995-2001, we identify the effect of the inflows of immigrants on their career, employment and wages. We use the 1991 distribution of immigrants by nationality across European labor markets to construct an imputed inflow of the foreign-born population that is exogenous to local demand shocks. We also control for .fixed effects that absorb individual, country-year, occupation group-year and occupation group-country heterogeneity and shocks. We find that native European workers are more likely to move to occupations associated with higher skills and status when a larger number of immigrants enter their labor market. As a consequence of this upward mobility their wage income also increases with a 1-2 years lag. We find no evidence of an increase in their probability of becoming unemployed.

Keywords: Immigrants, Job Upgrading, Mobility, Self-employment, Europe

JEL Classification: J61, O15

Suggested Citation

Cattaneo, Cristina and Fiorio, Carlo V. and Peri, Giovanni, What Happens to the Careers of European Workers When Immigrants 'Take Their Jobs'? (June 5, 2014). FEEM Working Paper No. 54.2014. Available at SSRN: https://ssrn.com/abstract=2446499 or http://dx.doi.org/10.2139/ssrn.2446499

Cristina Cattaneo (Contact Author)

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici ( email )

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Carlo V. Fiorio

University of Milan - Dipartimento di Scienze Economiche, Aziendali e Statistiche ( email )

via Conservatorio 7
Milano, 20122
Italy

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)

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