G. Blangiardo, M. Perez, L. Quattrociocchi, R. Zizza - Job and opportunities Income and poverty

Job and opportunities
Income and poverty
Giancarlo Blangiardo - Università Milano Bicocca
Monica Perez - Istat
Luciana Quattrociocchi - Istat
Roberta Zizza - Banca d’Italia

What kind of integration?
Integration shows three specific characteristics: processuality, multi-dimensionality,
and bi-directionality.
a)Integration is a process which always and only develops over time and requires
some time.
b)Integration is always a multi-dimensional process, since it concerns different
aspects of a migrant person’s life, that is to say, the economic, social, cultural, and
political dimension.
c)Integration is always a bi-directional process, even when it is not immediately
visible or it is rejected. Migrants must start a process of inclusion in the host society,
which may be put into effect in different ways, but in any case obliges them to be
confronted with the culture of the host country. The citizens of the host country, in
turn, must be confronted with the newcomers and take a stance towards them
(rejection, acceptance, mistrust, tolerance, openness, etc.), which may call their
lifestyle into question, as well as their idea of their own integration in the society they
belong to
Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome 17 - 18 June 2013

Some Common Basic Principles for
Immigrant Integration (*)
• (1) Integration is a dynamic, two-way process of mutual accommodation by all
immigrants and residents of Member States (…).
• (3) Employment is a key part of the integration process and is central to the
participation of immigrants, to the contributions immigrants make to the host
society, and to making such contributions visible
• (6) Access for immigrants (…) to public and private goods and services, on a
basis equal to national citizens and in a non-discriminatory way is a critical
foundation for better integration.
• (11) Developing clear goals, indicators and evaluation mechanisms are
necessary to adjust policy, evaluate progress on integration and to make the
exchange of information more effective. (*)
(*) Justice and Home Affairs Council, 2004

Integration measure
How to measure and compare
integration levels among migrant
populations
(or sub-populations defined according to some specific
features)

The classical macro approach:
by
statistical indicators of integration

Indicators on job and living conditions
• Job opportunities
 Employment rate
 Unemployment rate
 Activity rate
 Permanent/fixed term employment
 Part time/full time employment
 Education job-mismatches (over qualification)
…
• Income, living conditions, poverty
 Household net income
 People at risk of poverty or social esclusion
 Peolple living in household with very low work intensity
 Peolple at risk of poverty after social transfer
 Severally material deprived people
.....

Main labour market indicators processed on foreigners
Source: Labour Force Survey- Year 2012

Main indicators on living conditions
of foreigners
Source: Survey on Living conditions of families with foreigners – Year 2009

Macro data from statistical sources
duly processed to produce indicators
Main sources
•Labour Force Survey
•EU Statistics on Income and Living Conditions
•OECD PISA Survey
•Census data
•Etc.
Ad hoc Italian surveys
•Survey on Living conditions of families with foreigners
•Survey on Social condition and integration of foreigners
•Survey of the Regional Observatory for Integration and Multiethnicity
(Ismu-Eupolis 2001-2012)

The alternative micro approach:
by
individual scores of integration
Very apt to investigate differential aspects of the integration
corresponding to local areas or to specific sub-populations
& to control the effects of local or targeted policies

Individual data-base from statistical
surveys duly processed
The tools
•1) Individual Census outcomes or Representative samples of the
target population
•2) A methodology able to assign an integration score, according to a
preliminary definition of integration, to every statistical unit of the
sample

HOW TO
assign an integration score, according to a preliminary definition of
integration, to every statistical unit of the data-base ?
the following steps are required
REMARK
In this example we shall consider the sole topic of labor market integration of
TCNs.
Anyway a similar procedure can be followed in order to assign individual
integration scores regarding both other specific dimensions (education,
social exclusion, etc.) and the integration level as a whole

Measuring integration through individual
integration scores
• STEP1 Choice of the k integration variables of the dataset
(according to a shared definition of integration in the labor market)
• STEP2 Identification of integration scores for each variable by
processing the frequencies of the sample distribution of the k variables selected
• STEP3 Assignment the k scores to each statistical unit according
to its modality of the variables under consideration
• STEP4 Attribution of the average score of integration at each
statistical unit (such score will be considered as an additional variable to the original
dataset)
• STEP5 Processing the integration average score in connection
with the structural data (personal features, education, social inclusion, etc.)

Example of the application of the
procedure
Definition: “a migrant who is employed with a stable/secured job that gives
good income and is adequate to his education level can be considered fully
integrated into the labor market”
Step 1
Selection of a set of indicators according to a definition of integration in the labor market
4 dimensions
Employment
Stability &
job
security
Net income from
work
Over qualification
Source: PerLa Survey 2009 - Percorsi Lavorativi (Labour Path) 13,006 sample
units;
Target population: migrants living in Italy who have or had a legal job since 12
months before the survey
Methodology: Centre sampling

Step 2
Identification of integration scores by processing the frequencies of the
sample distribution of the variables selected
lowest highest
-1 0 1
Employment integration index (score)
(for each of the 4 dimensions)

Step 2 (cont’d)
Identification of integration scores by processing the frequencies of the sample distribution
Sample Frequency %
Employment Unemployed 7.1
Employed 92.9
Total 100
Stability & Low 0.1
job security Medium 38.6
High 61.3
Total 100
Net income <500 € 3.1
from work 500-800 € 28.5
800-1200 € 50.9
1200 – 1500 € 13.5
1500- 2000 € 2.9
2000- 3000 € 0.9
> 3000 e 0.3
Total 100
Over qualification Severely inadequate 4.8
(job compared Moderately inadequate 27.2
to education) Adequate 68.0
Total 100

Step 2 (cont’d)
Example of identification of integration scores by processing the
frequencies of the sample distribution
Sample
Frequency % Corresponding Scores
Over
qualification Severely inadequate 4.8 [ -27.2 -68.0 ] / 100 = -0.95
(job compared Moderately inadequate 27.2 [+4.8 – 68.0] /100 = -0.63
to education) Adequate 68.0 [+4.8 +27.2] /100 = +32.0
Total 100
For each modality the corresponding score is obtained through the
difference between the sum of the previous frequencies (relative)
less the sum of the following ones. It can be remarked that, for any
variable, the mean score for the whole set of sample units will be
zero.

Set of scores
(for each of the 4 dimensions)
Employment Unemployed -0.93
Employed +0.07
Stability & Low -0.99
job security Medium -0.61
High +0.39
< 500 € -0.97
Net income 500 – 800 € -0.65
from work 800 – 1200 € 0.14
1200 – 1500 € 0.78
1500 – 2000 € 0.95
2000 – 3000 € 0.99
> 3000 € 1.00
Over qualification
Severely inadequate -0.95
(job compared
Moderately inadequate -0.63
to education)
Adequate 0.32

Steps 3 & 4
Assignment the scores to each statistical unit according to its modality of the
variable under consideration (total 13,006 units) & Average of the 4 partial
scores (Final Mean score)Sampl
e unit
No.
Employment
Stability &
job security
(*)
Net income
from work
(*)
(*) Over
qualification
Mean
score
Modality Score Modality Score Modality Score Modality Score
1 Employed +0.07 Low -0.99 <500 € -0.97 Severely
inadequate
-0.95
- 0.71
2 Unemploye
d
-0.93 High +0.39 500-800€ -0.65 Moderately
inadequate
-0.63
-0.45
3 Employed +0.07 Medium -0.61 1500-
2000€
+0.95 Adequate +0.32
+0.18
4 Employed +0.07 Medium -0.61 2000-
3000€
+0.99 Severely
inadequate
-0.95
-0.12
… …
1,000 Unemploye
d
-0.93 High +0.39 800-1200€ +0.14 Moderately
inadequate
-0.63
-0.26
… …
13,006 Employed +0.07 Low -0.99 >3000€ +1.00 Adequate +0.32
+0.10
All
sample
units
Mean
Score
0.00 Mean
Score
0.00 Mean
Score
0.00 Mean
Score
0.00
(*) Present or last job

Steps 5
Processing the integration scores together with structural data (personal
features, education, social inclusion, etc.)
Integration Index: final mean scores by year of arrival to Italy and gender
Source: Ismu-PerLa 2009

Additional remark
Positive integration scores seem to be associated to better work
conditionsscores
Source: Ismu-PerLa 2009
Work conditions Yes/No Final Mean integration score
Satisfaction for the present job Yes + 0.0341
No -0.1183
In the work place being the victim of aggression,
threats, because foreign
Yes -0.0374
No +0.090
Aspects improved in the present work compared
to the previous -
Salary / gain Yes +0.0513
No -0.1013
Type of job Yes +0.0429
No -0.0341
Responsibility Yes +0.0545
No -0.0259

A further example
Financial and ‘asset’ integration, based on Bank of Italy’s SHIW (Survey on
Household Income and Wealth)  biennial survey ran since the 1960’s on a sample
of resident households (including foreign citizens)
4 dimensions
•Home ownership
•Having a current account or deposit
•Net income from work
•Net wealth per capita

The definition of financial and ‘asset’
integration (*)
“An adult who possesses a current account or a savings deposit with a bank or
postal office, who is the owner of his/her dwelling, and has adequate financial
resources (obtained by a work) and assets can be considered fully integrated from
a financial point of view”.
(*) For economic resources refers to labor income (dependent and
independent) for the whole assets to the complex of real assets and net financial
assets held by the family and made in per capita terms.

Financial and ‘asset’ integration of foreign
migrants (2006; 20-64 yrs)
• Men are more integrated than women, penalised by lower labour income, while
they perform better in the other components referred to the household and not to
the individual, plausibly reflecting the fact that women are less likely to live in
single-person households (14%, versus 27% for men)
• Integration increases with the level of education (especially due to the labour
income dimension)
Men
Women
<=7years
8-11years
>=12years
Compulsory
Diploma
Tertiaryeduc.
-0.06
-0.04
-0.02
0
0.02
0.04
0.06
Notes: our elaborations on SHIW data. Caveats are needed due to small sample size.

Financial and ‘asset’ integration - The
effects of the crisis
• In 2012 the degree of integration deteriorated wrt 2006 for both men (only due to
the wealth component) and women (all dimensions)
Year Men Women
Home ownership 2006 -0.047 0.053
2010 -0.037 -0.008
Var. 2010-2006 0.01 -0.061
Having a current account or deposit 2006 -0.011 0.012
2010 0.026 -0.047
Var. 2010-2006 0.037 -0.059
Net income from work 2006 0.277 -0.308
2010 0.311 -0.309
Var. 2010-2006 0.034 -0.001
Net wealth per capita 2006 -0.027 0.03
2010 -0.153 -0.073
Var. 2010-2006 -0.126 -0.103
Average index 2006 0.048 -0.053
2010 0.035 -0.109
Var. 2010-2006 -0.013 -0.0056
Notes: our elaborations on SHIW data. Caveats are needed due to small sample size. Results are shown for the
sake of illustration of the methodology.

Conclusions
• Micro and macro approaches can be fully achieved
and can be complementary.
• Periodical sample surveys are required to monitor
integration levels of foreign population and to assess
progress.
• Individual level data from 2011 Census will offer an
important opportunity to investigate in detail
integration within migrant sub-populations and to
compare them to the autochthons’.

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G. Blangiardo, M. Perez, L. Quattrociocchi, R. Zizza - Job and opportunities Income and poverty