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The impact of immigration on the wage structure : Spain 1995-2002

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Author Info
Raquel Carrasco ()
Juan F. Jimeno ()
Ana Carolina Ortega ()

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Abstract

In this paper we estimate the impact of inward migration flows on the Spanish wage structure over the period 1995-2002 by constructing counterfactual wage distributions that provide the wages that would have been observed had individual and job characteristics remain constant over time. Hence, we compute the impact of immigration on the wage distribution from (i) the estimated wage gaps between similar immigrants and native workers and (ii) the changes in the composition of employment associated to the arrival of new immigrants. Overall, we find that (i) the effects of immigration on wage changes are small and only noticeable when job characteristics are included as determinants of wages, and (ii) the correlation between the incidence of immigration in each decile of the wage distribution and the change in native wages not explained by changes in their individual and job characteristics is positive. These results suggest that other factors, besides immigration, should be identified as the key determinants of the wage moderation observed since the early nineties in Spain.

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Paper provided by Universidad Carlos III, Departamento de Economía in its series Economics Working Papers with number we080603.

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Date of creation: Feb 2008
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Handle: RePEc:cte:werepe:we080603

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Related research
Keywords: Immigration Wage structure Quantile regressions

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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  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. Bentolila, Samuel & Dolado, Juan J. & Jimeno, Juan Francisco, 2007. "Does Immigration Affect the Phillips Curve? Some Evidence for Spain," CEPR Discussion Papers 6604, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "Rethinking the Effects of Immigration on Wages," NBER Working Papers 12497, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Kristin F. Butcher & John DiNardo, 2002. "The Immigrant and native-born wage distributions: Evidence from United States censuses," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 56(1), pages 97-121, October.
  5. Mario Izquierdo & Juan F. Jimeno & Juan A. Rojas, 2007. "On the aggregate effects of immigration in Spain," Banco de España Working Papers 0714, Banco de España. [Downloadable!]
  6. Pia M. Orrenius & Madeline Zavodny, 2003. "Does immigration affect wages? A look at occupation-level evidence," Working Papers 03-02, Federal Reserve Bank of Dallas. [Downloadable!]
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  7. Angel López-Nicolás & Jaume García & Pedro J. Hernández, 2001. "How wide is the gap? An investigation of gender wage differences using quantile regression," Empirical Economics, Springer, vol. 26(1), pages 149-167. [Downloadable!] (restricted)
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  8. George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1335-1374, November. [Downloadable!] (restricted)
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  9. James Albrecht & Anders Bjorklund & Susan Vroman, 2003. "Is There a Glass Ceiling in Sweden?," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 145-177, January. [Downloadable!]
    Other versions:
  10. Mario Izquierdo & Aitor Lacuesta, 2006. "Wage inequality in Spain: recent developments," Banco de España Working Papers 0615, Banco de España. [Downloadable!]
  11. Juan Canal-Domínguez & César Rodríguez-Gutiérrez, 2008. "Analysis of wage differences between native and immigrant workers in Spain," Spanish Economic Review, Springer, vol. 10(2), pages 109-134, June. [Downloadable!] (restricted)
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