IDEAS home Printed from https://ideas.repec.org/p/fbk/wpaper/2022-07.html
   My bibliography  Save this paper

Another battle of the have-nots? The Impact of Immigration on the Poverty Risk of Western European

Author

Listed:
  • Martina Bazzoli
  • Joan E. Madia
  • Federico Podestà

Abstract

This paper examines the impact of immigration on natives’ poverty risk in Western European countries. Since poverty risk generally varies across nations depending on work attachment and public programme access, it is assumed that the immigration impact is exercised through the combination of the labor market channel with the public-finance channel. The empirical investigation was focused on both the poverty risk of all the European natives and the poverty risk of low-skilled natives. To this end, an aggregate panel dataset composed of 14 Western European countries, annually observed for the period 2007-2018 was analysed. Findings clearly indicate that higher shares of immigration do not increase the risk of income poverty and material deprivation among Western European natives.

Suggested Citation

  • Martina Bazzoli & Joan E. Madia & Federico Podestà, 2022. "Another battle of the have-nots? The Impact of Immigration on the Poverty Risk of Western European," FBK-IRVAPP Working Papers 2022-07, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    • Handle: RePEc:fbk:wpaper:2022-07
    as

    Download full text from publisher

    File URL: https://irvapp.fbk.eu/wp-content/uploads/2023/02/WP_IRVAPP_2022_07_v2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Razin, Assaf & Sadka, Efraim, 2014. "Migration and Welfare State: Why is America Different from Europe?," CEPR Discussion Papers 10127, C.E.P.R. Discussion Papers.
    2. Marco Manacorda & Alan Manning & Jonathan Wadsworth, 2006. "The Impact of Immigration on the Structure of Male Wages: Theory and Evidence from Britain," RF Berlin - CReAM Discussion Paper Series 0608, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    3. Gianmarco I. P. Ottaviano & Giovanni Peri, 2021. "Rethinking The Effect Of Immigration On Wages," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 9, pages 245-290, World Scientific Publishing Co. Pte. Ltd..
    4. Anthony Edo & Farid Toubal, 2015. "Selective Immigration Policies and Wages Inequality," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 160-187, February.
    5. John DiNardo & David Card, 2000. "Do Immigrant Inflows Lead to Native Outflows?," American Economic Review, American Economic Association, vol. 90(2), pages 360-367, May.
    6. Abdurrahman Aydemir & George J. Borjas, 2007. "Cross-Country Variation in the Impact of International Migration: Canada, Mexico, and the United States," Journal of the European Economic Association, MIT Press, vol. 5(4), pages 663-708, June.
    7. Giovanni Peri & Chad Sparber, 2016. "Task Specialization, Immigration, and Wages," World Scientific Book Chapters,in: The Economics of International Migration, chapter 3, pages 81-115 World Scientific Publishing Co. Pte. Ltd..
    8. Francesco D’Amuri & Gianmarco I.P. Ottaviano & Giovanni Peri, 2021. "The labor market impact of immigration in Western Germany in the 1990s," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 8, pages 223-243, World Scientific Publishing Co. Pte. Ltd..
    9. Ian Preston, 2014. "The Effect of Immigration on Public Finances," Economic Journal, Royal Economic Society, vol. 124(580), pages 569-592, November.
    10. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr, 2018. "The Effects of Immigration in Developed Countries: Insights from Recent Economic Research," CEPII Policy Brief 2018-22, CEPII research center.
    11. Cristina Cattaneo & Carlo Fiorio & Giovanni Peri, 2013. "Immigration and careers of European workers: effects and the role of policies," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-26, December.
    12. Joseph G. Altonji & David Card, 1991. "The Effects of Immigration on the Labor Market Outcomes of Less-skilled Natives," NBER Chapters, in: Immigration, Trade, and the Labor Market, pages 201-234, National Bureau of Economic Research, Inc.
    13. Ndeye Penda Sokhna & Lionel Ragot & Xavier Chojnicki, 2018. "The fiscal impact of 30 years of immigration in France: an accounting approach," EconomiX Working Papers 2018-36, University of Paris Nanterre, EconomiX.
    14. Corrado Giulietti, 2014. "The welfare magnet hypothesis and the welfare take-up of migrants," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-37, June.
    15. Giovanni Peri, 2014. "Do immigrant workers depress the wages of native workers?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-42, May.
    16. Alan Barrett & Yvonne McCarthy, 2007. "Immigrants in a Booming Economy: Analysing Their Earnings and Welfare Dependence," LABOUR, CEIS, vol. 21(4‐5), pages 789-808, December.
    17. Amelie F. Constant, 2014. "Do migrants take the jobs of native workers?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-10, May.
    18. Barbone, Luca & Bontch-Osmolovsky, Misha & Zaidi, Salman, 2009. "The foreign-born population in the European Union and its contribution to national tax and benefit systems : some insights from recent household survey data," Policy Research Working Paper Series 4899, The World Bank.
    19. Bonin, Holger, 2006. "Der Finanzierungsbeitrag der Ausländer zu den deutschen Staatsfinanzen: Eine Bilanz für 2004," IZA Discussion Papers 2444, Institute of Labor Economics (IZA).
    20. Jorgen Hansen & Magnus Lofstrom, 2009. "The dynamics of immigrant welfare and labor market behavior," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(4), pages 941-970, October.
    21. Robert Rowthorn, 2008. "The fiscal impact of immigration on the advanced economies," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(3), pages 561-581, Autumn.
    22. Giovanni Peri & Chad Sparber, 2016. "Task Specialization, Immigration, and Wages," World Scientific Book Chapters, in: The Economics of International Migration, chapter 3, pages 81-115, World Scientific Publishing Co. Pte. Ltd..
    23. Patricia Cortes, 2008. "The Effect of Low-Skilled Immigration on U.S. Prices: Evidence from CPI Data," Journal of Political Economy, University of Chicago Press, vol. 116(3), pages 381-422, June.
    24. George J. Borjas & Lawrence F. Katz, 2007. "The Evolution of the Mexican-Born Workforce in the United States," NBER Chapters, in: Mexican Immigration to the United States, pages 13-56, National Bureau of Economic Research, Inc.
    25. George J. Borjas, 2021. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 9, pages 235-274, World Scientific Publishing Co. Pte. Ltd..
    26. repec:iza:izawol:journl:y:2014:p:10 is not listed on IDEAS
    27. repec:hal:pseose:hal-01306656 is not listed on IDEAS
    28. repec:iza:izawol:journl:y:2014:p:37 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr, 2018. "The Effects of Immigration in Developed Countries: Insights from Recent Economic Research," CEPII Policy Brief 2018-22, CEPII research center.
    2. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr & Arthur Sweetman, 2020. "An introduction to the economics of immigration in OECD countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1365-1403, November.
    3. Edo, Anthony & Rapoport, Hillel, 2019. "Minimum wages and the labor market effects of immigration," Labour Economics, Elsevier, vol. 61(C).
    4. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    5. Ortega, Javier & Verdugo, Gregory, 2014. "The impact of immigration on the French labor market: Why so different?," Labour Economics, Elsevier, vol. 29(C), pages 14-27.
    6. Francesco D’Amuri & Gianmarco I.P. Ottaviano & Giovanni Peri, 2021. "The labor market impact of immigration in Western Germany in the 1990s," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 8, pages 223-243, World Scientific Publishing Co. Pte. Ltd..
    7. Eleftherios Giovanis, 2022. "The effects of international migration on well-being of natives and immigrants: evidence from Germany, Switzerland and the UK," SN Business & Economics, Springer, vol. 2(6), pages 1-33, June.
    8. Bosetti, Valentina & Cattaneo, Cristina & Verdolini, Elena, 2015. "Migration of skilled workers and innovation: A European Perspective," Journal of International Economics, Elsevier, vol. 96(2), pages 311-322.
    9. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 625-685, Elsevier.
    10. Chletsos Michael & Roupakias Stelios, 2019. "Do Immigrants Compete with Natives in the Greek Labour Market? Evidence from the Skill-Cell Approach before and during the Great Recession," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-30, April.
    11. Giovanni Peri & Chad Sparber, 2016. "Task Specialization, Immigration, and Wages," World Scientific Book Chapters,in: The Economics of International Migration, chapter 3, pages 81-115 World Scientific Publishing Co. Pte. Ltd..
    12. Ottaviano, Gianmarco & Peri, Giovanni, 2008. "Immigration and National Wages: Clarifying the Theory and the Empirics," CEPR Discussion Papers 6916, C.E.P.R. Discussion Papers.
    13. Ariu, Andrea & Müller, Tobias & Nguyen, Tuan, 2023. "Immigration and the Slope of the Labor Demand Curve: The Role of Firm Heterogeneity in a Model of Regional Labor Markets," CEPR Discussion Papers 18091, C.E.P.R. Discussion Papers.
    14. 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.
    15. Giovanni Peri, 2009. "Rethinking the Area Approach: Immigrants and the Labor Market in California, 1960-2005," Working Papers 57, University of California, Davis, Department of Economics.
    16. Edo, Anthony & Toubal, Farid, 2017. "Immigration and the gender wage gap," European Economic Review, Elsevier, vol. 92(C), pages 196-214.
    17. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
    18. Ortega, J. & Verdugo, G., 2011. "Immigration and the Occupational Choice of Natives: a Factor Proportions Approach," Working papers 335, Banque de France.
    19. Anthony Edo, 2017. "The Impact of Immigration on Wage Dynamics: Evidence from the Algerian Independence War," CESifo Working Paper Series 6595, CESifo.
    20. Ken-Hou Lin & Inbar Weiss, 2019. "Immigration and the Wage Distribution in the United States," Demography, Springer;Population Association of America (PAA), vol. 56(6), pages 2229-2252, December.

    More about this item

    Keywords

    Poverty risk of natives; Immigration; Western Europe;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fbk:wpaper:2022-07. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alessio Tomelleri or Daniela Anesi (email available below). General contact details of provider: https://edirc.repec.org/data/irvapit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.