Unemployment trap or high job turnover? Ethnic penalties and labour market transitions in Italy

Abstract

This article aims at analysing the trajectories of immigrants in the Italian labour market, focusing on yearly transitions from unemployment to employment and vice versa. Regression models show that, controlling for age, educational attainment and region, immigrant workers lose their jobs more often than natives but, once being unemployed they have more probabilities of finding a job than natives. As the probabilities of both transitions can be affected by characteristics of the initial status as well, the two transitions have been analysed separately. For the risk of losing a job, the segregation of immigrants in the secondary labour market seems to be the main reason of their penalization, but also the main reason of their advantage in job seeking, since their unemployment spells are shorter than those of natives, although at the cost of accepting worse working conditions. Analyses are based on the yearly transition matrices of Italian Labour Force Surveys, from 2005 to 2008.