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Immigration, Jobs and Employment Protection: Evidence from Europe

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  • Francesco D'Amuri
  • Giovanni Peri
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.

Suggested Citation

  • Francesco D'Amuri & Giovanni Peri, 2011. "Immigration, Jobs and Employment Protection: Evidence from Europe," NBER Working Papers 17139, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:17139
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    1. 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..
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    9. Francesc Ortega & Giovanni Peri, 2014. "The Aggregate Effects of Trade and Migration: Evidence from OECD Countries," Population Economics, in: Andrés Artal-Tur & Giovanni Peri & Francisco Requena-Silvente (ed.), The Socio-Economic Impact of Migration Flows, edition 127, pages 19-51, Springer.
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    Cited by:

    1. Christian Dustmann & Tommaso Frattini, 2011. "Immigration: The European Experience," Development Working Papers 326, Centro Studi Luca d'Agliano, University of Milano, revised 27 Dec 2011.
    2. De Arcangelis, Giuseppe & Di Porto, Edoardo & Santoni, Gianluca, 2015. "Migration, labor tasks and production structure," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 156-169.
    3. Ortega, Francesc & Polavieja, Javier G., 2012. "Labor-market exposure as a determinant of attitudes toward immigration," Labour Economics, Elsevier, vol. 19(3), pages 298-311.
    4. Frattini, T. (Tommaso), 2012. "GINI DP 44: Immigration and Inequality in Europe," GINI Discussion Papers 44, AIAS, Amsterdam Institute for Advanced Labour Studies.
    5. de la Rica, Sara & Glitz, Albrecht & Ortega, Francesc, 2013. "Immigration in Europe: Trends, Policies and Empirical Evidence," IZA Discussion Papers 7778, Institute of Labor Economics (IZA).
    6. Isabell Koske & Jean-Marc Fournier & Isabelle Wanner, 2012. "Less Income Inequality and More Growth – Are They Compatible? Part 2. The Distribution of Labour Income," OECD Economics Department Working Papers 925, OECD Publishing.
    7. Claudia Cigagna & Giovanni Sulis, 2015. "On the potential interaction between labour market institutions and immigration policies," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(4), pages 441-468, July.
    8. Cattaneo, Cristina & Fiorio, Carlo V. & Peri, Giovanni, 2013. "What Happens to the Careers of European Workers When Immigrants "Take Their Jobs"?," IZA Discussion Papers 7282, Institute of Labor Economics (IZA).
    9. Cooke, Abigail & Kemeny, Thomas, 2017. "Cities, immigrant diversity, and complex problem solving," Research Policy, Elsevier, vol. 46(6), pages 1175-1185.
    10. 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.
    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. repec:ocp:rpaper:pp-16/05 is not listed on IDEAS
    13. Stephan Brunow & Bastian Stockinger, 2013. "Establishments' and Regions' Cultural Diversity as a Source of Innovation: Evidence from Germany," Norface Discussion Paper Series 2013022, Norface Research Programme on Migration, Department of Economics, University College London.
    14. Bryan Caplan, 2012. "Why Should We Restrict Immigration?," Cato Journal, Cato Journal, Cato Institute, vol. 32(1), pages 5-24, Winter.
    15. Labanca, Claudio, 2020. "The effects of a temporary migration shock: Evidence from the Arab Spring migration through Italy," Labour Economics, Elsevier, vol. 67(C).
    16. Rafal Kierzenkowski & Isabell Koske, 2013. "The Drivers Of Labor Income Inequality — A Literature Review," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-32.
    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.

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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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