Davide Fiaschi (University of Pisa)
Tealdi Cristina
This paper investigates the role of worker heterogeneity in shaping labour market dynamics in Italy, with a particular focus on differences between migrants and natives. Building on the framework of \citet{GregoryMenzioWiczer2025}, we classify workers into three latent types$\alpha$, $\beta$, and $\gamma$that capture persistent differences in job-finding rates, employment stability, and earnings trajectories. Using longitudinal administrative data covering worker transitions between 2009 and 2020, we apply a grouped fixed-effects approach to identify these latent types and examine how their distribution varies across demographic and institutional dimensions. We assess whether migrants are disproportionately represented among the more unstable $\gamma$-type workers and how such composition effects amplify unemployment fluctuations. By linking empirical evidence to a search-theoretic model, the paper contributes to understanding how institutional dualism and migration interact to sustain inequality and employment instability in segmented labour markets.