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Assimilation of immigrants in Spain: A longitudinal analysis

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Author Info
Mario Izquierdo () (Banco de España)
Aitor Lacuesta () (Banco de España)
Raquel Vegas () (FEDEA)
Abstract

In this paper we use the Continuous Sample of Working Histories 2005 (MCVL2005) to analyze the earnings assimilation of migrants from outside the EU-15 in Spain. Using our panel dataset we show that immigrants reduce around the half of the initial wage gap respect to natives the first 5 to 6 years after arrival. However, no further reductions of the remaining wage gap are estimated. We also show that results based on cross-section data are downward biased since an important increase in the quality of migrants has taken place over the recent years. This skill upgrading of new immigrant cohorts is evident in the Spanish case as well as the depreciation of the value of most of the experience that is brought from abroad. We can associate the improvement in the skill of immigrants to a change in the composition of new entrants. An important mechanism underlying the assimilation is the higher likelihood of recent immigrants in changing jobs among different sectors and firms, but also improving their situation within the same firm. Finally, some caveats should be taken into account when interpreting our results given that immigration phenomenon is quite recent in the Spanish labour market and it has taken place in an especially positive economic environment.

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Publisher Info
Paper provided by Banco de España in its series Banco de España Working Papers with number 0904.

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Length: 33 pages
Date of creation: Mar 2009
Date of revision:
Handle: RePEc:bde:wpaper:0904

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Related research
Keywords: Immigration; assimilation; longitudinal data; selection; human capital;

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Alicia Adsera & Barry Chiswick, 2007. "Are there gender and country of origin differences in immigrant labor market outcomes across European destinations?," Journal of Population Economics, Springer, vol. 20(3), pages 495-526, July. [Downloadable!] (restricted)
    Other versions:
  2. Wei-Yin Hu, 2000. "Immigrant Earnings Assimilation: Estimates from Longitudinal Data," American Economic Review, American Economic Association, vol. 90(2), pages 368-372, May. [Downloadable!] (restricted)
  3. Fernandez, Cristina & Ortega, Carolina, 2006. "Labour market assimilation of immigrants in Spain: employment at the expense of bad job-matches?," IESE Research Papers D/644, IESE Business School. [Downloadable!]
    Other versions:
  4. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October. [Downloadable!] (restricted)
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  6. Catalina Amuedo-Dorantes & Sara de la Rica, 2007. "Labour Market Assimilation of Recent Immigrants in Spain," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 45(2), pages 257-284, 06. [Downloadable!] (restricted)
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  7. Darren Lubotsky, 2007. "Chutes or Ladders? A Longitudinal Analysis of Immigrant Earnings," Journal of Political Economy, University of Chicago Press, vol. 115(5), pages 820-867, October. [Downloadable!] (restricted)
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  8. Antecol, Heather & Kuhn, Peter & Trejo, Stephen J., 2003. "Assimilation via Prices or Quantities? Labor Market Institutions and Immigrant Earnings Growth in Australia, Canada, and the United States," IZA Discussion Papers 802, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Raquel Carrasco & Juan F. Jimeno & Ana Carolina Ortega, 2004. "The Effect Of Immigration On The Employment Opportunities Of Native-Born Workers: Some Evidence For Spain," Economics Working Papers we046122, Universidad Carlos III, Departamento de Economía. [Downloadable!]
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  10. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352. [Downloadable!] (restricted)
  11. Kapteyn, Arie & Alessie, Rob & Lusardi, Annamaria, 2005. "Explaining the wealth holdings of different cohorts: Productivity growth and Social Security," European Economic Review, Elsevier, vol. 49(5), pages 1361-1391, July. [Downloadable!] (restricted)
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  12. Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, vol. 25(3), pages 303-325, July. [Downloadable!] (restricted)
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