Are Foreign Migrants More Assimilated than Native Ones?

35 Pages Posted: 22 Dec 2009

See all articles by Riccardo Faini

Riccardo Faini

affiliation not provided to SSRN

Steinar Strøm

University of Oslo - Ragnar Frisch Centre for Economic Research; CESifo (Center for Economic Studies and Ifo Institute)

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 compares the pattern of wage assimilation of foreigners with both native immigrants and local natives in Italy, a country with large internal and international migration. This comparison, not yet exploited, yields understanding of the role played by language and knowledge of social capital. We use the administrative dataset on dependent employment (WHIP), to estimate a fixed effect model of the weekly wages of males aged 18-45 with controls for selection in return migration and unobserved heterogeneity. The three groups of workers start their careers at the same wage level but, as experience increases, the wage profiles of foreigners and natives, both immigrants and locals, diverge. A positive selection in the returns prevails, so that the foreign workers with lower wages are the most likely to stay in Italy. Also an "ethnic" skill differential emerges and a negative status dependence for those entering at low wage level.

Keywords: migration, assimilation, wage differential

JEL Classification: J31, J61, C23

Suggested Citation

Faini, Riccardo and Strøm, Steinar and Venturini, Alessandra and Villosio, Claudia, Are Foreign Migrants More Assimilated than Native Ones?. IZA Discussion Paper No. 4639, Available at SSRN: https://ssrn.com/abstract=1526069

Riccardo Faini (Contact Author)

affiliation not provided to SSRN

No Address Available

Steinar Strøm

University of Oslo - Ragnar Frisch Centre for Economic Research ( email )

Gaustadalleen 21
N-0317 Oslo
Norway

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Alessandra Venturini

University of Turin - Department of Economics ( email )

Via Po, 53
Torino, 10124
Italy

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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

Villa La Fonte, via delle Fontanelle 18
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 )

Via Bava 8
Torino 10124
Italy
011-888100 (Phone)

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