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Immigration, factor endowments and the productive structure of Spanish regions

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Author Info

  • Guadalupe Serrano

    () (Dept. of Economic Analysis. Faculty of Economics. University of Valencia)

  • Francisco Requena

    () (Dept. of Economic Analysis. Faculty of Economics. University of Valencia)

  • Joan Martin-Montaner

    () (Dept. of Economics. Universitat Jaume I de Castelló)

Abstract

Participation of immigrants in Spanish labour market increased from less than 3 percent in 1996 to more than 13 percent in 2005. We use the factor proportion model of production to examine the impact of such a large labour supply shock on the industrial structure of Spanish regions. The results confirm that, first, labour endowment differences across regions help to explain the pattern of industry specialisation across regions. Second, immigrants and natives act as complementary factors in most industries. Third, the importance of immigration is relatively small compared to production technique changes and idiosyncratic industry changes in explaining the overall changes in industrial structure from 1996 to 2005.

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File URL: ftp://147.156.210.157/RePEc/pdf/eec_1003.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Department of Applied Economics II, Universidad de Valencia in its series Working Papers with number 1003.

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Length: 41 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:eec:wpaper:1003

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Related research

Keywords: Rybczynski Effect; immigration; production specialisation; technological change;

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  1. Amuedo-Dorantes, Catalina & de la Rica, Sara, 2009. "Complements or Substitutes? Task Specialization by Gender and Nativity in Spain," IZA Discussion Papers 4348, Institute for the Study of Labor (IZA).
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