Does Low Skilled Immigration Cause Human Capital Polarization? Evidence from Italian Provinces

Arbeitspapier

While there is a vast literature considering the labour market effects of immigration, less has been done to investigate how immigration affects the educational choices of young natives. Using Italian provincial data and an instrumental variables strategy, we show that the recent increase in the immigration of low skilled labour has produced human capital polarization, i.e. the contemporaneous increase in the share of natives with less than high school and not enrolled in school and in the share with a college degree or enrolled in college. This evidence is stronger for males than for females. We adapt the standard Card's model of educational choice and spell out under what conditions human capital polarization occurs. We estimate wage equations by gender and find that these conditions are satisfied, especially for Italian males.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 11062

Classification and Topics

• Classification: Wirtschaft ; Retirement; Retirement Policies ; Social Security and Public Pensions ; Labor Force and Employment, Size, and Structure ; Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination ; Demographic Trends, Macroeconomic Effects, and Forecasts
• Subject: low skilled ; immigration ; human capital ; Italy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Brunello, Giorgio ; Lodigiani, Elisabetta ; Rocco, Lorenzo
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/173972
• Last update: 10.03.2025, 11:45 AM CET