Do Immigrants Working Illegally Reduce the Natives' Legal Employment? Evidence from Italy

Posted: 1 Jul 1999

See all articles by Alessandra Venturini

Alessandra Venturini

University of Turin - Department of Economics; IZA Institute of Labor Economics; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Claudia Villosio

LABORatorio R. Revelli, Centre for Employment Studies; R&P Ricerche e Progetti

Abstract

The paper uses estimates, provided by the Central Statistical Office, of standard units of labor to examine how immigrants working (illegally) in the shadow economy affect the employment of (legal) labor in the official economy. The results of our cross sector-time series analysis of the demand for legal labor in the Italian economy between 1980 and 1995 show that the increase of illegal units of labor produces a reduction in the use of legal labor, albeit a very limited one. An analysis by sectors shows that the competitive effect of illegal foreign workers is not homogeneous and is strongest in the agricultural sector, while complementarity between the two categories of labor is evident in the non-tradable services sector. Furthermore, when the effects of illegal foreign and illegal native workers are compared, the former is smaller than the latter one, with illegal foreigners workers just reinforcing the impact of the illegal nationals on the labor market.

JEL Classification: F22, J61

Suggested Citation

Venturini, Alessandra and Villosio, Claudia, Do Immigrants Working Illegally Reduce the Natives' Legal Employment? Evidence from Italy. Available at SSRN: https://ssrn.com/abstract=151457

Alessandra Venturini (Contact Author)

University of Turin - Department of Economics ( email )

Via Po, 53
Torino, 10124
Italy

IZA Institute of Labor Economics

P.O. Box 7240
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Germany

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

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50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Claudia Villosio

LABORatorio R. Revelli, Centre for Employment Studies ( email )

Via Real Collegio 30
10024 Moncalieri
Italy
+39 011.670.50.63 (Phone)
+ 39 011 6705061 (Fax)

R&P Ricerche e Progetti ( email )

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Torino 10124
Italy
011-888100 (Phone)

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