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Determinants of Foreign Workers’ Wages in Two Italian Regions with High Illegal Immigration

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  • Emanuele Baldacci
  • Luca Inglese
  • Salvatore Strozza

Abstract

Since the end of the 1970s Italy has moved from being an out‐migration country to being a foreign immigration country, but very few studies have addressed the factors determining the wages of immigrant workers, owing to the lack of available data. In this paper we analyse the determinants of the wages of immigrants in some areas of Latium and Campania, where the share of illegal immigration is relatively high, using the results of a set of sample surveys which collected information on several aspects of the immigration process in the years 1993–94. The purpose of the article is to shed some light on the factors underlying wage distribution among the immigrants using an estimation method that controls for sample selection problems. According to the empirical results, income differences seem to be relatively high among immigrants. Differences in labour market integration among sexes and area of origin clearly emerge from the results. Moreover, legal status plays an important role in the explanation of the wage gap between documented and undocumented immigrants, also because of the different occupational sector structure in the two groups.

Suggested Citation

  • Emanuele Baldacci & Luca Inglese & Salvatore Strozza, 1999. "Determinants of Foreign Workers’ Wages in Two Italian Regions with High Illegal Immigration," LABOUR, CEIS, vol. 13(3), pages 675-709, September.
    • Handle: RePEc:bla:labour:v:13:y:1999:i:3:p:675-709
    DOI: 10.1111/1467-9914.00111
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    Cited by:

    1. Pia M. Orrenius & Madeline Zavodny, 2016. "Irregular immigration in the European Union," Working Papers 1603, Federal Reserve Bank of Dallas.
    2. Fabio Méndez & Facundo Sepúlveda & Nieves Valdés, 2016. "Legalization and human capital accumulation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(3), pages 721-756, July.
    3. Daniela del Boca & Alessandra Venturini, 2001. "Italian Migration," CHILD Working Papers wp26_01, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    4. Camilla Pangallo & Oliviero Casacchia & Corrado Polli, 2024. "Skills and wage differences between native and foreign workers in Italy," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 78(2), pages 63-73, April-Jun.
    5. Catalina Amuedo-Dorantes & Kusum Mundra, 2007. "Social networks and their impact on the earnings of Mexican Migrants," Demography, Springer;Population Association of America (PAA), vol. 44(4), pages 849-863, November.
    6. Martin Ruhs, 2017. "The Impact of Acquiring EU Status on the Earnings of East European Migrants in the UK: Evidence from a Quasi-Natural Experiment," British Journal of Industrial Relations, London School of Economics, vol. 55(4), pages 716-750, December.

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