Labour Economics: An European Perspective Inequalities in EU Labour Market Dipartimento di Economia e Management Davide Fiaschi davide.fiaschi@unipi.it November 22, 2017 D. Fiaschi Labour Economics 22/11/2017 1 / 32
Stylized Facts about Italian migration Italy is at the centre of both ingoing and outgoing migration flows Internal migration is also important: about 2% of the Italian population per year Inter-regional migration accounts for 24% of total migration, which corresponds to approximately 320.000 people moving from one region to another Northers regions, such as Lombardy, Piedmont and Veneto, are the most chosen destination regions, while Southern regions such as Campania, Puglia, Basilicata, Calabria e Sicilia have more outflows than inflows Persistence of large disparities among regions, particularly North-South D. Fiaschi Labour Economics 22/11/2017 2 / 32
Migration rate and Shorrocks Index migration.rate 0.005 0.006 0.007 0.008 0.009 Shorrocks index Migration rate 1995 2000 2005 2010 2015 D. Fiaschi Labour Economics 22/11/2017 3 / 32
Net interregional migration rate by region Net Migration Rate 0.05 0.00 0.05 Piemonte Valle d Aosta Lombardia Bolzano Bozen Trento Veneto Friuli Venezia Giulia Liguria Emilia Romagna Toscana Umbria Marche Lazio Abruzzo Molise Campania Puglia Basilicata Calabria Sicilia Sardegna 1980 1985 1990 1995 2000 2005 2010 2015 D. Fiaschi Labour Economics 22/11/2017 4 / 32
Net interregional incoming rate by region Incoming Migration Rate 0.00 0.05 0.10 0.15 Piemonte Valle d Aosta Lombardia Bolzano Bozen Trento Veneto Friuli Venezia Giulia Liguria Emilia Romagna Toscana Umbria Marche Lazio Abruzzo Molise Campania Puglia Basilicata Calabria Sicilia Sardegna 1980 1985 1990 1995 2000 2005 2010 2015 D. Fiaschi Labour Economics 22/11/2017 5 / 32
Net interregional outgoing rate by region Outgoing Migration Rate 0.00 0.05 0.10 0.15 Piemonte Valle d Aosta Lombardia Bolzano Bozen Trento Veneto Friuli Venezia Giulia Liguria Emilia Romagna Toscana Umbria Marche Lazio Abruzzo Molise Campania Puglia Basilicata Calabria Sicilia Sardegna 1980 1985 1990 1995 2000 2005 2010 2015 D. Fiaschi Labour Economics 22/11/2017 6 / 32
Literature review Faini et al. (1997): coexistence of lower migration rates and increasing employment differentials between North and South in the period 1970-1990 is an empirical puzzle the role of the family; Basile e Causi (2007) and Etzo (2008, 2011) claim that the increased migration rates since the mid 90s go in parallel with the increased unemployment differentials between North and South and identify per capita GDP as the main pull factor; Cannari et al. (2010) and Mocetti e Porello (2010) find that other variables such as house prices, but also employment rate, temporary contracts, employment in PA and immigration rate are important determinants; Biagi et al. (2011) find that long-distance migration is driven by economic factors while short-distance migration is mainly motivated by quality o life and amenities; Fratesi and Percoco (2014) find that selective migration is a diverging force in the regional convergence process. D. Fiaschi Labour Economics 22/11/2017 7 / 32
Descriptive statistics Migrants are younger: the majority belongs to the 25-34 age group; less educated: the majority holds a primary level of education; same share of men and women; however in 2005 compared to 1995 among migrants we observe an increased share of age: individuals in the group 25-34 education: individuals with a tertiary level of education gender: women D. Fiaschi Labour Economics 22/11/2017 8 / 32
Migration Rate by Age and Education Migration Rate 0.000 0.005 0.010 0.015 0.020 15 24 L 15 24 M 15 24 H 25 34 L 25 34 M 25 34 H 35 54 L 35 54 M 35 54 H 1996 1998 2000 2002 2004 D. Fiaschi Labour Economics 22/11/2017 9 / 32
Shorrocks Index by Age and Education Shorrock index 0.000 0.005 0.010 0.015 0.020 15 24 L 15 24 M 15 24 H 25 34 L 25 34 M 25 34 H 35 54 L 35 54 M 35 54 H 1996 1998 2000 2002 2004 D. Fiaschi Labour Economics 22/11/2017 10 / 32
A theoretical framework for migration Standard Deviation of Log House Price S.d. of log of house price index 0.28 0.30 0.32 0.34 1995 2000 2005 2010 D. Fiaschi Labour Economics 22/11/2017 11 / 32
A theoretical framework for migration Relative House Price Relative house prices 0.5 1.0 1.5 2.0 ITC1 ITC2 ITC3 ITC4 ITD1 ITD3 ITD4 ITD5 ITE1 ITE2 ITE3 ITE4 ITF1 ITF2 ITF3 ITF4 ITF5 ITF6 ITG1 ITG2 1980 1985 1990 1995 2000 2005 2010 D. Fiaschi Labour Economics 22/11/2017 12 / 32
A theoretical framework for migration Percentage of Temporary Contracts % of temporary contracts 0.00 0.05 0.10 0.15 ITC1 ITC2 ITC3 ITC4 ITD1 ITD2 ITD3 ITD4 ITD5 ITE1 ITE2 ITE3 ITE4 ITF1 ITF2 ITF3 ITF4 ITF5 ITF6 ITG1 ITG2 1985 1990 1995 2000 2005 D. Fiaschi Labour Economics 22/11/2017 13 / 32