Immigrants smooth eurozone labour market shocks – Bank of Italy paper

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Growing immigrant populations have greatly increased the eurozone’s elasticity when it comes to labour market shocks, a working paper published by the Bank of Italy finds.

In Immigrants, labour market dynamics and adjustment to shocks in the euro area, Gaetano Basso, Francesco D’Amuri and Giovanni Peri use data from the European Labor Force Survey from 2007 to 2016. The authors note that the proportion of immigrants in the eurozone countries has grown from approximately 4.5% of the currency

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