EconPapers    
Economics at your fingertips  
 

Does low-skilled immigration increase profits? Evidence from Italian local labour markets

Giorgio Brunello, Elisabetta Lodigiani () and Lorenzo Rocco

Regional Science and Urban Economics, 2020, vol. 85, issue C

Abstract: We study the effects of low-skilled immigration on firm profits, average wages, employment, capital and total factor productivity (TFP) by combining firm-level and local labour market data from Italy. We find that low-skilled immigration increases profits by reducing average wages and total labour costs. This effect is small on average, but about ten times larger for firms operating in local labour markets with a high share of low-skilled employment than for other firms. In these areas, the substitution effects triggered by immigration reduce average wages much more than elsewhere.

Keywords: Low-skilled immigration; Profits; Local labor markets (search for similar items in EconPapers)
JEL-codes: J24 J61 L25 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0166046220302672
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Does Low Skilled Immigration Increase Profits? Evidence from Italian Local Labour Markets (2019) Downloads
Working Paper: Does Low Skilled Immigration Increase Profits? Evidence from Italian Local Labour Markets (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:85:y:2020:i:c:s0166046220302672

DOI: 10.1016/j.regsciurbeco.2020.103582

Access Statistics for this article

Regional Science and Urban Economics is currently edited by D.P McMillen and Y. Zenou

More articles in Regional Science and Urban Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-23
Handle: RePEc:eee:regeco:v:85:y:2020:i:c:s0166046220302672