Immigration, Jobs and Employment Protection: Evidence from Europe

Innovation and Economic Growth

Article Snapshot

Author(s)

Francesco D'Amuri and Giovanni Peri

Source

NBER Working Paper No. w17139, June 2011

Summary

Analyzes how immigration affected employment, job creation and native occupations in Europe from 1998-2006.

Policy Relevance

More flexible labor laws are associated to more job creation and more intense upgrading of jobs by natives in response to immigrants.

Main Points

  • This paper analyzes how immigration has affected occupation and employment of European workers.
     
  • There is no evidence that immigration in European countries over the period 1998-2006 reduced employment of native workers.
     
  • Significant evidence shows that immigrants took "simple" (manual-routine) type of occupations and natives moved, in response, toward more "complex" (abstract-communication) jobs.
     
  • Immigration stimulated job creation, and the complexity of jobs offered to new native hires was higher relative to the complexity of destructed native jobs.
     
  • The occupation reallocation of natives was significantly larger in countries with more flexible labor laws. This tendency was particularly strong for less educated workers.

 

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