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The Effect of (Mostly Unskilled) Immigration on the Innovation of Italian Regions

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  • Bratti, Massimiliano

    (Università degli Studi di Milano)

  • Conti, Chiara

    (Sapienza University of Rome)

Abstract

We use small Italian regions (i.e. provinces) to investigate the causal effect of foreign immigration on innovation during 2003-2008. Using instrumental variables estimation (based on immigrants' enclaves), we find that the overall stock of immigrants did not have any effect on innovation. However, decomposing the overall effect into the contributions of low- and high-skilled migrants shows that an increase of 1 percentage point in the share of low-skilled migrants on the population reduces patent applications by about 0.2%. By contrast, the impact of high-skilled immigrants on innovation is positive, in line with the previous literature, but cannot be precisely estimated.

Suggested Citation

  • Bratti, Massimiliano & Conti, Chiara, 2014. "The Effect of (Mostly Unskilled) Immigration on the Innovation of Italian Regions," IZA Discussion Papers 7922, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7922
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    3. Alessandra Venturini & Claudio Fassio & Fabio Montobbio, 2015. "How do Native and Migrant Workers Contribute to Innovation? A Study on France, Germany and the UK," Discussion Papers 30, Central European Labour Studies Institute (CELSI).
    4. Alessandra Venturini & Claudio Fassio & Sona Kalantaryan, 2015. "Human Resources and Innovation: Total Factor Productivity and Foreign Human Capital," Discussion Papers 29, Central European Labour Studies Institute (CELSI).
    5. Alessandra Michelangeli & Nicola Pontarollo & Giuseppe Vittucci Marzetti, 2019. "Ethnic minority concentration: A source of productivity growth for Italian provinces?," Papers in Regional Science, Wiley Blackwell, vol. 98(1), pages 17-34, February.
    6. Jahn, Vera & Steinhardt, Max Friedrich, 2016. "Innovation and immigration — Insights from a placement policy," Economics Letters, Elsevier, vol. 146(C), pages 116-119.
    7. Labanca, Claudio, 2014. "The effects of a temporary migration shock. The case of the Arab Spring migration toward Italy," University of California at San Diego, Economics Working Paper Series qt8m49f3qb, Department of Economics, UC San Diego.
    8. Fassio, Claudio & Montobbio, Fabio & Venturini, Alessandra, 2015. "How Do Native and Migrant Workers Contribute to Innovation?," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201520, University of Turin.
    9. Ceren Ozgen, 2021. "The economics of diversity: Innovation, productivity and the labour market," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1168-1216, September.
    10. Claudio Fassio & Alessandra Venturini, 2015. "Do native and migrant workers contribute to innovation? Patents dynamic in France, Germany and the UK," RSCAS Working Papers 2015/41, European University Institute.
    11. Labanca, Claudio, 2020. "The effects of a temporary migration shock: Evidence from the Arab Spring migration through Italy," Labour Economics, Elsevier, vol. 67(C).

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    More about this item

    Keywords

    patent applications; innovation; immigration; regions; Italy;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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