The contribution of foreign workers on productivity and wages: company level evidence from Italy

Abstract

The aim of this paper is to describe the main features of firms for socio-characteristics of employees and to investigate the effects of share of foreign workers on firm productivity and wages. The analysis takes focuses on the medium and big size firms and on manufactured and not agricultural sectors. For the study, we combined data from different data sources (ASIA enterprises, ASIA employees and AIDA – Bureau Van Dijk). We found three main results in this paper: primary, higher share of foreign workers has a negative impact on productivity and wages of Italian firms, Secondary, the interaction between Extra-UE born workers and blue collars (do not) reduce significatively (labour productivity) wages. Finally, larger share of foreign-born employees that work in knowledge sector increases labour productivity and wages.