Immigration, Jobs and Employment Protection: Evidence from Europe

Francesco D'Amuri and Giovanni Peri

No 17139, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper we analyze the effect of immigrants on native jobs in fourteen Western European countries. We test whether the inflow of immigrants in the period 1996-2007 decreased employment rates and/or if it altered the occupational distribution of natives with similar education and age. We find no evidence of the first but significant evidence of the second: immigrants took "simple" (manual-routine) type of occupations and natives moved, in response, toward more "complex" (abstract-communication) jobs. The results are robust to the use of an IV strategy based on past settlement of different nationalities of immigrants across European countries. We also document the labor market flows through which such a positive reallocation took place: immigration stimulated job creation, and the complexity of jobs offered to new native hires was higher relative to the complexity of destructed native jobs. Finally, we find evidence that the occupation reallocation of natives was significantly larger in countries with more flexible labor laws. This tendency was particularly strong for less educated workers.

JEL-codes: J24 J61 J62 (search for similar items in EconPapers)
Date: 2011-06
New Economics Papers: this item is included in nep-eec, nep-eur, nep-lab and nep-mig
Note: LS
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Published as “Immigration, Jobs and Labor Market Institutions: Evidence from Europe” (with F. D’Amuri) Journal of European Economic Association, Volume 12, Issue 2, pages 432–464, April 2014

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Working Paper: Immigration, Jobs and Employment Protection: Evidence from Europe (2010)
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