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Migration in a segmented labour market

Abstract: 
Embedded in the “dual labour market” theory which focuses on the role of structural characteristics of national labour markets in determining the demand for foreign labour force, this report intends to contribute to the debate on drivers of the demand for foreign labour force and on mechanisms of labour market integration of immigrants in host countries. In specific, the report aims to assess whether in segmented labour markets foreign workforce has higher probability of being allocated on specific segments, and associated jobs, than natives. The analysis was carried out in reference to the EU-15 area (AT, BE, DE, DK, ES, FI, FR, GR, IE, IT, LU, NL, PT, SE, and UK) using the 2015 EU LFS data. The results identified three distinct segments on the EU labour market describing the coexistence of “good” jobs on one side and “bad” jobs on another. In such labour market structure, the estimates show that immigrants have higher probability than natives of being employed in “bad” jobs, although the immigrants-natives gap varies significantly among MS. These estimates are confirmed even when the sample is limited to more recent immigration waves.
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