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 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 Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

Integration measure How to measure and compare integration levels among migrant populations (or sub-populations defined according to some specific features) Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

The classical macro approach: by statistical indicators of integration Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

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..... Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

Main labour market indicators processed on foreigners Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013 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 ) Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

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 Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

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 Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

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 Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

Measuring integration through individual integration scores STEP1Choice of the k integration variables of the dataset (according to a shared definition of integration in the labor market) STEP2Identification of integration scores for each variable by processing the frequencies of the sample distribution of the k variables selected STEP3Assignment the k scores to each statistical unit according to its modality of the variables under consideration STEP4Attribution of the average score of integration at each statistical unit (such score will be considered as an additional variable to the original dataset) STEP5Processing the integration average score in connection with the structural data (personal features, education, social inclusion, etc.) Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

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 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 Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

Step 2 Identification of integration scores by processing the frequencies of the sample distribution of the variables selected lowest highest 01 Employment integration index (score) (for each of the 4 dimensions) Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

Step 2 (cont’d) Identification of integration scores by processing the frequencies of the sample distribution Sample Frequency % Employment Unemployed7.1 Employed92.9 Total100 Stability & Low0.1 job security Medium38.6 High61.3 Total100 Net income <500 €3.1 from work € € – 1500 € € €0.9 > 3000 e0.3 Total100 Over qualification Severely inadequate4.8 (job compared Moderately inadequate27.2 to education) Adequate68.0 Total100 Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

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 inadequate4.8 [ ] / 100 = (job compared Moderately inadequate27.2 [+4.8 – 68.0] /100 = to education) Adequate68.0 [ ] /100 = Total100 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. Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

Set of scores (for each of the 4 dimensions) Employment Unemployed-0.93 Employed+0.07 Stability & Low job security Medium High < 500 € Net income 500 – 800 € from work 800 – 1200 € – 1500 € – 2000 € – 3000 € 0.99 > 3000 € 1.00 Over qualification Severely inadequate (job compared Moderately inadequate to education) Adequate 0.32 Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

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 ModalityScoreModalityScoreModalityScoreModalityScore 1Employed+0.07Low-0.99<500 €-0.97Severely inadequate Unemploye d -0.93High €-0.65Moderately inadequate Employed+0.07Medium € +0.95Adequate Employed+0.07Medium € +0.99Severely inadequate …… 1,000Unemploye d -0.93High €+0.14Moderately inadequate …… 13,006Employed+0.07Low-0.99>3000€+1.00Adequate All sample units Mean Score 0.00Mean Score 0.00Mean Score 0.00Mean Score 0.00 (*) Present or last job Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

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 Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

Additional remark Positive integration scores seem to be associated to better work conditionsscores Source: Ismu-PerLa 2009 Work conditionsYes/NoFinal Mean integration score Satisfaction for the present jobYes No In the work place being the victim of aggression, threats, because foreign Yes No Aspects improved in the present work compared to the previous - Salary / gainYes No Type of jobYes No ResponsibilityYes No Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

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 Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

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. Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

Financial and ‘asset’ integration of foreign migrants (2006; 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) Notes: our elaborations on SHIW data. Caveats are needed due to small sample size. Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

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) 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. Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

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’. Job and opportunities - Income and poverty| Giancarlo Blangiardo | Rome June 2013

Thank you for your attention