Are Immigrants an asset in recession? Insight from Italy

In this paper we analyse the characteristics of employed migrants before and after the beginning of the recession in Italy to understand whether the economic crisis has exacerbated or reduced the high segmentation of the Italian labour market, with foreign workers largely concentrated in low-paid and low-quality jobs, even when highly educated. The analysis looks separately at male and female migrants because of strong gender specialization, with the female component highly concentrated in the homecare and healthcare sectors, and the male component mainly employed in the manufacturing and construction sectors. We inquire how employment, working conditions and wages have changed before and after the crisis in the sectors and occupations where foreign workers are concentrated with respect to the other sectors and occupations of the Italian economy. We conclude that the disadvantage of being in a segmented labour market nevertheless allowed for positive growth of foreign employment during the recession, but it implied an even greater segregation in terms of low-skilled, unstable, and poorly paid jobs.