Too Much or Too Little Immigration? Evidence From the Non-Tradable Services Sector

Viki Nellas 2, Elisabetta Olivieri1
1Department of Economic Sciences, University of Bologna, Italy, 2Departement de Sciences Sociales, Universitè Toulouse 1, France, 3Bank of Italy, Italy

In this paper we study the sector of non-tradable services directly substitute of household production because it is linked with some crucial issues of the labor market (immigration, female participation, consumption spillover). Using Italian data, we look at the role played by immigration in that sector. We show that both wages and employment have grown and there is a positive correlation between the two. Moreover we find evidence of spillover consumption. Then, using a demand-supply framework, we verify that the supply growth, mainly provided by immigrant workers, has been lower than the demand one. To understand what this situation entails for the labor market and for the policy design, we consider the impact of immigrants on the female labor market condition. We identify a causal effect of immigration on some aspects of the women working life: i) higher the presence of immigrants in a restricted labor market, higher is the probability that a woman works; ii) in province where there is a greater amount of immigrants, the probability that a woman doesn't look for a work because of family reason decreases; iii) the presence of immigrants reduced the probability that a women chooses a part-time just for family reasons.

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