Arbeitspapier

Does Low Skilled Immigration Increase Profits? Evidence from Italian Local Labour Markets

We estimate the (causal) effects of low skill immigration on the performance of Italian manufacturing firms. We find that an increase of the local supply of low skilled immigrants by one thousand units – which corresponds to 8.5 percent of the mean value - raises profits on average by somewhat less than half a percentage point, reduces average labour costs by about 0.1 percent and has no effect on TFP. The positive effects on profits are larger for small firms operating in low tech sectors and for firms located in areas specializing in low skill productions. Our evidence suggests that the recent waves of low skilled immigration in Italy may have hampered the transition to an economic structure characterized by high productivity and wage growth.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 12226

Classification
Wirtschaft
Geographic Labor Mobility; Immigrant Workers
Subject
low skilled immigration
profits
Italy

Event
Geistige Schöpfung
(who)
Brunello, Giorgio
Lodigiani, Elisabetta
Rocco, Lorenzo
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2019

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Brunello, Giorgio
  • Lodigiani, Elisabetta
  • Rocco, Lorenzo
  • Institute of Labor Economics (IZA)

Time of origin

  • 2019

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