a column by Enrica Maria Martino, Edoardo Di Porto and Paolo Naticchioni for VOX: CEPR’s Policy Portal
Legalisation of immigrant workers is a simple policy to implement and can be very effective in reducing undeclared labour, yet economists know relatively little about how host economies are affected.
This column analyses Italy's largest ever legalisation to examine how the policy affects firms’ employment, shapes legalised migrants workers’ careers, and affects their co-workers.
Despite regularising firms experiencing only very short-lasting employment growth, legalised migrants remained strongly attached to the formal labour market. High mobility of migrants to other firms, provinces and industries is an important driver of the results, helping to ensure that co-workers’ careers were not affected by the reform.
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Showing posts with label immigrant_workers. Show all posts
Showing posts with label immigrant_workers. Show all posts
Wednesday, 13 February 2019
Tuesday, 5 February 2019
The impact of regularising migrant workers
a column by Enrica Maria Martino, Edoardo Di Porto and Paolo Naticchioni for VOX: CEPR’s Policy Portal
Legalisation of immigrant workers is a simple policy to implement and can be very effective in reducing undeclared labour, yet economists know relatively little about how host economies are affected.
This column analyses Italy's largest ever legalisation to examine how the policy affects firms’ employment, shapes legalised migrants workers’ careers, and affects their co-workers. Despite regularising firms experiencing only very short-lasting employment growth, legalised migrants remained strongly attached to the formal labour market. High mobility of migrants to other firms, provinces and industries is an important driver of the results, helping to ensure that co-workers’ careers were not affected by the reform.
Continue reading
Legalisation of immigrant workers is a simple policy to implement and can be very effective in reducing undeclared labour, yet economists know relatively little about how host economies are affected.
This column analyses Italy's largest ever legalisation to examine how the policy affects firms’ employment, shapes legalised migrants workers’ careers, and affects their co-workers. Despite regularising firms experiencing only very short-lasting employment growth, legalised migrants remained strongly attached to the formal labour market. High mobility of migrants to other firms, provinces and industries is an important driver of the results, helping to ensure that co-workers’ careers were not affected by the reform.
Continue reading
Friday, 19 October 2018
First fired, first hired? Business cycles and immigrant labor market transitions
an article by Huanan Xu (Indiana University, South Bend, USA) published in IZA Journal of Development and Migration Volume 8 Article 19 (2018)
Abstract
Using individual-level Current Population Survey (CPS) data matched across adjacent months from 1996 to 2013, this paper examines immigrant-native differentials in labor market transitions to changes in the business cycle.
The paper captures economic fluctuations by measuring deviations in local demand from national economic circumstances and examines monthly transitions among employment, unemployment, and nonparticipation.
Immigrants are found to be first fired and first hired over the business cycle, and the aggregate unemployment gap is caused by immigrants’ higher rates in the unemployment entry flow. Although to some extent the gap can be explained by variation in the immigrant-native’s exposure to cycles across industry and occupation, the first fired and first hired pattern still holds.
Tests for heterogeneity show that low-skilled immigrants are more vulnerable to the business cycle. Tests of the structural changes from the 2007–2009 Great Recession show that since its start, there was a secular shift in the transition probabilities that would affect all workers negatively, but cyclical volatility was mitigated for immigrants in the post-Great Recession period.
JEL Classification: J15, J21, J23, J61, J63, J64
Full text (PDF 35pp)
Abstract
Using individual-level Current Population Survey (CPS) data matched across adjacent months from 1996 to 2013, this paper examines immigrant-native differentials in labor market transitions to changes in the business cycle.
The paper captures economic fluctuations by measuring deviations in local demand from national economic circumstances and examines monthly transitions among employment, unemployment, and nonparticipation.
Immigrants are found to be first fired and first hired over the business cycle, and the aggregate unemployment gap is caused by immigrants’ higher rates in the unemployment entry flow. Although to some extent the gap can be explained by variation in the immigrant-native’s exposure to cycles across industry and occupation, the first fired and first hired pattern still holds.
Tests for heterogeneity show that low-skilled immigrants are more vulnerable to the business cycle. Tests of the structural changes from the 2007–2009 Great Recession show that since its start, there was a secular shift in the transition probabilities that would affect all workers negatively, but cyclical volatility was mitigated for immigrants in the post-Great Recession period.
JEL Classification: J15, J21, J23, J61, J63, J64
Full text (PDF 35pp)
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