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The Effects of Migration on the Relative Demand of Skilled versus Unskilled Labour: Evidence from Spain

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Author Info
Dolado, Juan J.
Duce, Rosa
Jimeno, Juan Francisco

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Abstract

In this paper we construct a simple model of the effects of immigration on the labour market outcomes of natives. In this model, skilled and unskilled labour are substitutes, immigrants are complementary to the former, and wages are determined by bargaining. We are able to prove that, irrespective of the degree of competition in the market for skilled labour, there are sufficient conditions for immigration to raise total employment. We then estimate the effects of immigration on wages and employment of both types of workers across Spanish provinces following the lifting of some restrictions on migration policy in 1991. We find little evidence that the subsequent inflows of immigrants are associated with negative effects on both wages and employment of less-skilled natives.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1476.

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Date of creation: Sep 1996
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Handle: RePEc:cpr:ceprdp:1476

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Related research
Keywords: Heterogeneous Labour; Immigration; Unions; Wages;

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Find related papers by JEL classification:
H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

Cited by:
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  1. Alexander Kemnitz, . "Discrimination and Resistance to Low Skilled Immigration," IVS discussion paper series 615, Institut für Volkswirtschaft und Statistik (IVS), University of Mannheim. [Downloadable!]
    Other versions:
  2. Alessandra Venturini & Claudia Villosio, 2004. "Labour Market Effects of Immigration: an Empirical Analysis Based on Italian Data," CHILD Working Papers wp17_04, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
  3. Joshua D. Angrist & Adriana D. Kugler, 2001. "Protective or Counter-Productive? Labor Market Institutions and the Effect of Immigration on EU Natives," Economics Working Papers 587, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
  4. Willi Leibfritz & Paul O'Brien & Jean-Christophe Dumont, 2003. "Effects of Immigration on Labour Markets and Government Budgets -- An Overview," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  5. Joshua Angrist & Adriana Kugler, 2001. "Protective or Counter-Productive? European Labor Market Institutions and the Effect of Immigrants on EU Natives," NBER Working Papers 8660, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Alexander Kemnitz, . "Unemployment, Technology and the Welfare Effects of Immigration," IVS discussion paper series 611, Institut für Volkswirtschaft und Statistik (IVS), University of Mannheim. [Downloadable!]
  7. Longhi, Simonetta & Nijkamp, Peter & Poot, Jacques, 2008. "Meta-Analysis of Empirical Evidence on the Labour Market Impacts of Immigration," IZA Discussion Papers 3418, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. Sari Pekkala, 2005. "Economic Impacts of Immigration: A Survey," Discussion Papers 362, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  9. Raquel Fonseca, 2003. "On the Interaction between Unemployment and Inter-regional Mobility," CSEF Working Papers 105, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy. [Downloadable!]
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