Immigration and Careers of European Workers: Effects and the Role of Policies

"Immigration and Careers of European Workers: Effects and the Role of Policies" published in IZA Journal of European Labor Studies 2013, 2:17 doi:10.1186/2193-9012-2-17.

FEEM Working Paper No. 56.2014

Posted: 13 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 12, 2014

Abstract

In this paper we analyze the response of career, employment and wage of native Europeans to immigration. We then ask how individual country’s policies affect these responses. We use data on 11 EU countries, over the period 1995-2001. We also use the 1991 distribution of immigrants by nationality across European labor markets to construct a version of the enclave-based instrument to proxy for the flow of immigrants, that is exogenous to local demand shocks. We find that native Europeans are more likely to upgrade to more skilled and better paid occupations, when a larger number of immigrants enter their labor market. We find no evidence of an increased likelihood of non-employment or geographical mobility. We find that more flexible labor markets in a country are a key factor to have employment upgrading in response to immigration.

Keywords: Immigrants, Europe, Occupation Upgrading, Mobility, Labor Market Policies

JEL Classification: J61, O15

Suggested Citation

Cattaneo, Cristina and Fiorio, Carlo V. and Peri, Giovanni, Immigration and Careers of European Workers: Effects and the Role of Policies (June 12, 2014). "Immigration and Careers of European Workers: Effects and the Role of Policies" published in IZA Journal of European Labor Studies 2013, 2:17 doi:10.1186/2193-9012-2-17.; FEEM Working Paper No. 56.2014. Available at SSRN: https://ssrn.com/abstract=2449196

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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