Immigration and Native Employment. Evidence from Italian Provinces in the Aftermath of the Great Recession

Abstract

This study exploits the variability in the incidence of recent immigration inflows and the change in native employment in the Italian provinces to shed light on the impact of immigration on employment in rigid local labour markets. The study focuses on the period that followed the financial and sovereign debt crises, which strongly hit the labour markets of the Italian provinces. The results reveal a negligible overall impact of immigration on provincial employment which, however, hides differentiated impacts for different groups of natives. Employment responses to immigration shocks vary greatly depending on the skills and gender of the natives.