Does Low Skilled Immigration Cause Human Capital Polarization? Evidence from Italian Provinces

46 Pages Posted: 23 Oct 2017

See all articles by Giorgio Brunello

Giorgio Brunello

University of Padua - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA)

Elisabetta Lodigiani

Ca Foscari University of Venice; University of Milan; University of Milan - Centro Studi Luca d'Agliano (LdA)

Lorenzo Rocco

University of Padua; University of Toulouse I

Abstract

While there is a vast literature considering the labour market effects of immigration, less has been done to investigate how immigration affects the educational choices of young natives. Using Italian provincial data and an instrumental variables strategy, we show that the recent increase in the immigration of low skilled labour has produced human capital polarization, i.e. the contemporaneous increase in the share of natives with less than high school and not enrolled in school and in the share with a college degree or enrolled in college. This evidence is stronger for males than for females. We adapt the standard Card's model of educational choice and spell out under what conditions human capital polarization occurs. We estimate wage equations by gender and find that these conditions are satisfied, especially for Italian males.

Keywords: low skilled, immigration, human capital, Italy

JEL Classification: J26, H55, J21, J14, J11

Suggested Citation

Brunello, Giorgio and Lodigiani, Elisabetta and Rocco, Lorenzo, Does Low Skilled Immigration Cause Human Capital Polarization? Evidence from Italian Provinces. IZA Discussion Paper No. 11062. Available at SSRN: https://ssrn.com/abstract=3056600

Giorgio Brunello (Contact Author)

University of Padua - Department of Economics ( email )

via Del Santo 33
35121 Padova
Italy
+39 049 827 4223 (Phone)
+39 049 827 4221 (Fax)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Elisabetta Lodigiani

Ca Foscari University of Venice ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

University of Milan ( email )

Via Festa del Perdono, 7
Milan, 20122
Italy

University of Milan - Centro Studi Luca d'Agliano (LdA)

Via P. Amedeo 34
Milano, Mi 20122
Italy

Lorenzo Rocco

University of Padua ( email )

Via 8 Febbraio, 2
Padova, Vicenza 35122
Italy

University of Toulouse I

Place Anatole France
Toulouse Cedex, F-31042
France

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