Citizenship Acquisition and Labour Market Outcomes Among Immigrants in Italy: Evidence From Linked Survey‐Register Data

ABSTRACT The literature shows that immigrants who acquire citizenship tend to achieve better labour market outcomes than those who do not, though this may reflect positive selection rather than a causal effect. This study is the first to examine the consequences of citizenship acquisition for immigrants in Italy, a country with rising naturalisation rates and persistent ethnic penalties. Using nationally representative survey and register data for 2016, we compared natives, naturalised and non‐naturalised immigrants on employment, socio‐economic attainment and earnings. To disentangle selection from causal effects, we applied growth curve models and two‐way fixed effects. Results show that naturalised immigrants have higher socio‐economic attainment and earnings than their non‐naturalised counterparts, but similar employment trajectories. These advantages are more pronounced among women. Overall, findings suggest that improved outcomes among naturalised immigrants are largely driven by positive selection into naturalisation, rather than by the acquisition of citizenship itself.