“…Previous studies examine the effects of immigration on various aspects of the labour market of the host countries such as unemployment, wages, employment opportunities, working conditions, and labour productivity (Docquier, Ozden, & Peri, 2014;Dustmann, Glitz, & Frattini, 2008;Longhi et al, 2010a;Okkerse, 2008;Smith, 2012). In particular, other studies, more closely related to our paper, document the tendency of the immigrants to be underemployed in the informal economy of the host countries, using case studies, interviews, surveys, and macroeconomic statistics (Bohn & Owens, 2012;Cappelen & Muriaas, 2018;Pajnik, 2016;Theodore et al, 2018;Yea, 2017). In this research context, our study is, to our knowledge, the first attempt to provide empirical evidence of the impact of immigration on LTAV, the logical effect of UDW and other labour exploitative practice, by starting from firmlevel accounting information to carry out a spatial econometric analysis.…”