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Migration, Labor Tasks and Production Structure

Giuseppe De Arcangelis, Edoardo Di Porto and Gianluca Santoni

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: We assess the effect of migrants' stock on the production structure of the Italian provinces (NUTS3) in 1995-2006. Although the investigated time span is very short, the effect is small but statistically significant: a doubling in the ratio of foreign-born residents to the province population induces a significant increase in manufactures' value added with respect to services' value added between 12 and 21 per cent. These effects are more intense when considering an increase in foreign-born populations drawn from countries more different to Italy (in terms of GDP per capita and educational attainment). These results are compatible with the reduced form of a two-sector model where we assume that production is performed with one mobile factor and two sector-specific CES labor composites of simple and complex tasks. If migrants and natives have different productivity when performing simple or complex tasks, an inflow of migrants induces production restructuring in favor of the simple-task intensive sector.

Keywords: Rybczynski Effect; International Migration; Province Labor Markets; Specific Factor Model; Productive Tasks (search for similar items in EconPapers)
JEL-codes: C25 F22 (search for similar items in EconPapers)
Date: 2015-02-17
New Economics Papers: this item is included in nep-int and nep-mig
Note: A previous version of this paper circulated with the title "Migration, Production Structure and Exports"
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Published in Regional Science and Urban Economics, 2015, 53, July, pp 156-169.

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