Is immigration necessary for Italy? Is it desirable?

A peculiarity of the Italian socio-economic model is the pathological coexistence of migrants un- dertaking low value-added activities with a large number of natives out of employment (particu- larly in the South). Perpetuating this model consolidates an ample underclass of poor migrants, thus fueling inequalities and social tensions. It also feeds the discontent among low-income Italians who cannot find acceptable jobs and therefore ask for assistance. The net lifetime contribution to the public finances of migrants precariously employed in badly-paid jobs is unlikely to be positive. Moreover, an abundance of migrants, largely unskilled and with a low reservation wage, favours the ‘‘lock-in’’ of the Italian economy along its current trajectory, characterised by relatively few technologically advanced firms. The policies advocated here should increase the natives’ employ- ment rate by making activities now undertaken by migrants more appealing, in the expectation that easier access to acceptable jobs would raise the fertility rate among young Italians.