Traces in the shadow: Occupational outcomes of previously undocumented migrants in Italy

Using a representative sample of currently legal third‐country immigrants in Italy, obtained from the Social Condition and Integration of Foreign Citizens survey, this article examines the long‐term labour market consequences of previous undocumented spells. First, formerly undocumented immigrants are identified using retrospective information on respondents' legal status. Second, immigrants are classified according to the duration of irregular spells before the achievement of the first residence permit. Third, current labour market outcomes are investigated to account for the endogeneity underlying the previous undocumented history. Results show that even though formerly undocumented immigrants are more likely to participate in the labour market, they are more likely to be employed in underqualified occupations than continuously legal immigrants. The duration of the irregular experience affects occupational qualification negatively, among both men and women. The lack of legal entry channels and policies to plan and regulate migration to Italy may reinforce labour market segmentation, exposing migrants to long‐term occupational downgrade.