Institute of European Studies
Immigration, Jobs and Employment Protection: Evidence from Europe
- Author(s): Peri, Giovanni
- D'Amuri, Francesco
- et al.
In this paper we analyze the effect of immigrants on native jobs in fourteen Western
European countries. We test whether the inflow of immigrants in the period 1996-2007
decreased employment rates and/or if it altered the occupational distribution of natives
with similar education and age. We find no evidence of the first but significant evidence
of the second: immigrants took “simple” (manual-routine) type of occupations and natives
moved, in response, toward more “complex” (abstract-communication) jobs. The
results are robust to the use of an IV strategy based on past settlement of different nationalities
of immigrants across European countries. We also document the labor market
flows through which such a positive reallocation took place: immigration stimulated job
creation, and the complexity of jobs offered to new native hires was higher relative to
the complexity of destructed native jobs. Finally, we find evidence that the occupation
reallocation of natives was significantly larger in countries with more flexible labor laws.
This tendency was particularly strong for less educated workers.