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Do immigrants working illegally reduce the natives' legal employment? Evidence from Italy

Author

Listed:
  • Alessandra Venturini

    (Department of Economics, University of Bergamo, Piazza Rosate 2, I-24100 Bergamo, Italy)

Abstract

The paper uses estimates, provided by the Central Statistical Office, of standard units of labour to examine how immigrants working (illegally) in the shadow economy affect the employment of (legal) labour in the official economy. The results of our cross sector-time series analysis of the demand for legal labour in the Italian economy between 1980 and 1995 show that the increase of illegal units of labour produces a reduction in the use of legal labour, albeit a very limited one. An analysis by sectors shows that the competitive effect of illegal foreign workers is not homogeneous and is strongest in the agricultural sector, while complementarity between the two categories of labour is evident in the non-tradable services sector. Furthermore, when the effects of illegal foreign and illegal native workers are compared, the former is smaller than the latter one, with illegal foreigners workers just reinforcing the impact of the illegal nationals on the labour market.

Suggested Citation

  • Alessandra Venturini, 1999. "Do immigrants working illegally reduce the natives' legal employment? Evidence from Italy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(1), pages 135-154.
    • Handle: RePEc:spr:jopoec:v:12:y:1999:i:1:p:135-154
    Note: Received: 27 June 1997/Accepted: 31 August 1998
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    Citations

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    Cited by:

    1. Matteo Gomellini & Cormac Ó Gráda, 2011. "Outward and Inward Migrations in Italy: A Historical Perspective," Quaderni di storia economica (Economic History Working Papers) 08, Bank of Italy, Economic Research and International Relations Area.
    2. M. Moretto & Sergio Vergalli, 2008. "Migration dynamics," Journal of Economics, Springer, vol. 93(3), pages 223-265, April.
    3. Nikolaj Malchow-Møller & Jakob Roland Munch & Claus Aastrup Seidelin & Jan Rose Skaksen, 2013. "Immigrant Workers and Farm Performance: Evidence from Matched Employer-Employee Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 819-841.
    4. Epstein, Gil S. & Weiss, Avi, 2001. "A Theory of Immigration Amnesties," IZA Discussion Papers 302, Institute of Labor Economics (IZA).
    5. Javier Ferri & Antonio G. Gómez-Plana & Joan Martín-Montaner, "undated". "International inmigration and mobility across sectors: an exploration of alternative scenarios for Spain," Studies on the Spanish Economy 124, FEDEA.
    6. Aslan Zorlu & Joop Hartog, 2000. "The Effect of Immigration on Native Earnings," Tinbergen Institute Discussion Papers 00-015/3, Tinbergen Institute.
    7. repec:ces:ifodic:v:9:y:2011:i:3:p:60-67 is not listed on IDEAS
    8. Daniela del Boca & Alessandra Venturini, 2001. "Italian Migration," CHILD Working Papers wp26_01, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    9. repec:bdi:workqs:qse_8 is not listed on IDEAS
    10. Marina Murat & Sergio Paba, 2005. "I distretti industriali tra immigrazione e internazionalizzazione produttiva," Department of Economics 0517, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    11. Gil Epstein & Avi Weiss, 2011. "The why, when, and how of immigration amnesties," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 285-316, January.
    12. Alessandra VENTURINI & Claudia VILLOSIO, 2006. "Labour market effects of immigration into Italy: An empirical analysis," International Labour Review, International Labour Organization, vol. 145(1-2), pages 91-118, March.
    13. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    14. Emanuele Bracco & Luisanna Onnis, 2022. "Immigration, amnesties, and the shadow economy," Bulletin of Economic Research, Wiley Blackwell, vol. 74(4), pages 1135-1162, October.
    15. Antonella D’Agostino & Andrea Regoli & Giancarlo Cornelio & Fabio Berti, 2016. "Studying Income Inequality of Immigrant Communities in Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 83-100, May.
    16. Casarico, Alessandra & Devillanova, Carlo, 2003. "Social security and migration with endogenous skill upgrading," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 773-797, March.
    17. Marchetti, Sabrina & Piazzalunga, Daniela & Venturini, Alessandra, 2013. "Costs and Benefits of Labour Mobility between the EU and the Eastern Partnership Countries Country Study: Italy," IZA Discussion Papers 7635, Institute of Labor Economics (IZA).
    18. Franck Düvell, 2011. "Irregular Immigration, Economics and Politics," CESifo DICE Report, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(3), pages 60-68, October.
    19. Stefano Fusaro & Enrique López‐Bazo, 2021. "Immigration and Native Employment. Evidence from Italian Provinces in the Aftermath of the Great Recession," Papers in Regional Science, Wiley Blackwell, vol. 100(2), pages 405-428, April.
    20. Bachtiar, Nasri & Fahmy, Rahmi & Ismail, Rahmah, 2015. "The Demand for Foreign Workers in the Manufacturing Sector in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 49(2), pages 135-147.
    21. Pia M. Orrenius & Madeline Zavodny, 2016. "Irregular immigration in the European Union," Working Papers 1603, Federal Reserve Bank of Dallas.
    22. repec:ces:ifodic:v:9:y:2011:i:3:p:16752111 is not listed on IDEAS
    23. Franck Düvell, 2011. "Irregular Immigration, Economics and Politics," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(03), pages 60-67, October.

    More about this item

    Keywords

    Illegal immigrants · underground economy · employment of legal workers;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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