How does immigration affect native internal mobility? New evidence from Italy

Abstract

This paper investigates the relationship between native internal mobility and immigration in Italy, in order to gain a better understanding of the impact of immigration on local labor markets and to gauge the consequences for the socio-demographic composition of the local population. Native mobility is examined both with respect to residential displacements across regions and the demographic evolution of local labor markets. Endogeneity issues related to immigrant geographical distribution are addressed using proximity to “gateways” as the instrumental variable. We find that immigration is positively associated with inflows of highly-educated natives, suggesting the existence of potential complementarities. The impact is concentrated among young adults and is higher in more urbanized areas. We also find a displacement of low-educated natives; in particular, immigrant concentration in the northern regions has partially substituted the traditional South–North mobility of less-skilled natives.