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The Impact of Immigration on the Well-Being of Natives
This paper examines the effect of immigration directly on the utility of natives. Combining information from the German Socio-Economic Panel dataset
with detailed local labour market characteristics for the period 1997 to 2007, we investigate how changes in the spatial concentration of immigrants affect the subjective well-being of German-born population. Our results suggest the existence of a robust, positive effect of immigration on natives' well-being.
The presence of confounding local labour market characteristics has a negligible impact on the estimates. On the other hand, we find substantial evidence that the assimilation of immigrants in the region matters: the positive effect of immigration increases up to a certain “assimilation threshold” and is essentially zero in areas where immigrants are economically integrated. We further conduct various sensitivity tests to ascertain that our findings are not driven by the potential endogeneity implied by the spatial sorting of natives and immigrants.
Corrado Giulietti is Deputy Director of Research and Deputy Program Director for the Migration Area at IZA. He is also Visiting Fellow of the UK ESRC Centre for Population Change. He obtained is Ph.D. in Economics at the University of Southampton in January 2010. His research interests are labor economics and applied econometrics, with a focus on the determinants of migration, the labor market effects of internal and international migration, the assimilation of immigrants and the estimation of migration flows. His publications have appeared in refereed journals and in books.
IRVAPP/Fondazione Bruno Kessler - Via Santa Croce 77 - Trento
The presentation will be in English.