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

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  • Raquel Carrasco

    ()

  • Juan F. Jimeno

    ()

  • Ana Carolina Ortega

    ()

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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Bibliographic Info

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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Keywords: Immigration; Wage structure; Quantile regressions;

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References

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  1. Samuel Bentolila & Juan J. Dolado & Juan F. Jimeno, 2007. "Does Immigration Affect The Phillips Curve? Some Evidence For Spain," Working Papers wp2007_0718, CEMFI.
  2. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
  3. Chiswick, Barry R. & Le, Anh T. & Miller, Paul W., 2006. "How Immigrants Fare Across the Earnings Distribution: International Analyses," IZA Discussion Papers 2405, Institute for the Study of Labor (IZA).
  4. 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.
  5. Rachel M. Friedberg, 1996. "You Can't Take It With You? Immigrant Assimilation and the Portability of Human Capital," NBER Working Papers 5837, National Bureau of Economic Research, Inc.
  6. 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.
  7. Ottaviano, Gianmarco I. P. & Peri, Giovanni, 2007. "Rethinking the effects of immigration on wages," HWWI Research Papers 3-8, Hamburg Institute of International Economics (HWWI).
  8. 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.
  9. Jaume Garcia & Pedro J. Hernández & Ángel López Nicolás, 1998. "How wide is the gap? An investigation of gender wage differences using quantile regression," Economics Working Papers 287, Department of Economics and Business, Universitat Pompeu Fabra.
  10. Javier Gardeazabal & Arantza Ugidos, 2005. "Gender wage discrimination at quantiles," Journal of Population Economics, Springer, vol. 18(1), pages 165-179, 07.
  11. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
  12. Mario Izquierdo & Aitor Lacuesta, 2006. "Wage inequality in Spain: recent developments," Banco de Espa�a Working Papers 0615, Banco de Espa�a.
  13. Pia M. Orrenius & Madeline Zavodny, 2003. "Does immigration affect wages? A look at occupation-level evidence," Working Papers 0302, Federal Reserve Bank of Dallas.
  14. 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.
  15. Mario Izquierdo & Juan F. Jimeno & Juan A. Rojas, 2007. "On the aggregate effects of immigration in Spain," Banco de Espa�a Working Papers 0714, Banco de Espa�a.
  16. Ugidos Olazabal, Arantza & Gardeazabal, Javier, 2003. "A Measure of Gender Wage Discrimination at Quantiles," DFAEII Working Papers 2002-16, University of the Basque Country - Department of Foundations of Economic Analysis II.
  17. Raquel Carrasco & Juan Jimeno & A. Ortega, 2008. "The effect of immigration on the labor market performance of native-born workers: some evidence for Spain," Journal of Population Economics, Springer, vol. 21(3), pages 627-648, July.
  18. Hipólito Simón & Esteban Sanromá & Raúl Ramos, 2008. "Labour segregation and immigrant and native-born wage distributions in Spain: an analysis using matched employer–employee data," Spanish Economic Review, Springer, vol. 10(2), pages 135-168, June.
  19. 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, Cornell University, ILR School, vol. 56(1), pages 97-121, October.
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Cited by:
  1. Clara Isabel González & J. Ignacio Conde-Ruiz & Michele Boldrin, 2008. "Immigration and Social Security in Spain," Working Papers 2008-36, FEDEA.

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