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Working Paper
Immigrants' Legalization and Firms: Evidence from the 2007 EU Enlargement
How do firms respond to permanent changes in the legal status of a substantial group of migrants? We study the effects of the entry to the European Union of Bulgaria and Romania in the Italian labor market. This event was particularly relevant for Italy, where Romanians constitute approximately one fifth of the immigrant population. We use administrative employer-employee data on the universe of private-sector workers and an IV-DID design to identify the effects of this change in migrants' legal status on firms' personnel and performance. Firms exhibit an increase in the share of migrant ...