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Immigrants Responsiveness to Labor Market Conditions

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  • Amuedo Dorantes, Catalina
  • De la Rica Goiricelaya, Sara

Abstract

Using data from the Spanish Labor Force Survey (Encuesta de Población Activa) from 1999 through 2004, we explore the role of regional employment opportunities in explaining the increasing immigrant flows of recent years despite the limited internal mobility on the part of natives. Subsequently, we investigate the policy question of whether immigration has helped reduced unemployment rate disparities across Spanish regions by attracting immigrant flows to regions offering better employment opportunities. Our results indicate that immigrants choose to reside in regions with larger employment rates and where their probability of finding a job is higher. In particular, and despite some differences depending on their origin, immigrants appear generally more responsive than their native counterparts to a higher likelihood of informal, self, or indefinite employment. More importantly, insofar the vast majority of immigrants locate in regions characterized by higher employment rates, immigration contributes to greasing the wheels of the Spanish labor market by narrowing regional unemployment rate disparities.

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Bibliographic Info

Paper provided by University of the Basque Country - Department of Foundations of Economic Analysis II in its series DFAEII Working Papers with number 2005-03.

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Date of creation: May 2005
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Handle: RePEc:ehu:dfaeii:200503

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Postal: Dpto. de Fundamentos del Análisis Económico II, = Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain
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Related research

Keywords: regional disparities; immigrant location; international migration;

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References

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  1. Daniela del Boca & Alessandra Venturini, 2001. "Italian Migration," CHILD Working Papers, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY wp26_01, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  2. David Card, 1997. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," NBER Working Papers 5927, National Bureau of Economic Research, Inc.
  3. Sara de la Rica & Thomas Lemieux, 1994. "Does Public Health Insurance Reduce Labor Market Flexibility or Encourage the Underground Economy? Evidence from Spain and the United States," NBER Chapters, National Bureau of Economic Research, Inc, in: Social Protection versus Economic Flexibility: Is There a Trade-Off?, pages 265-300 National Bureau of Economic Research, Inc.
  4. Namkee Ahn & Sara La De Rica, 1997. "The underground economy in Spain: an alternative to unemployment?," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 29(6), pages 733-743.
  5. 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, MIT Press, vol. 118(4), pages 1335-1374, November.
  6. Bover, Olympia & Velilla, Pilar, 1999. "Migration in Spain: Historical Background and Current Trends," IZA Discussion Papers 88, Institute for the Study of Labor (IZA).
  7. 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.
  8. Olympia Bover & Pilar Velilla, 1999. "Migrations in Spain: Historical Background and Current Trends," Banco de Espa�a Working Papers, Banco de Espa�a 9909, Banco de Espa�a.
  9. George J. Borjas & Richard B. Freeman & Lawrence F. Katz, 1996. "Searching for the Effect of Immigration on the Labor Market," NBER Working Papers 5454, National Bureau of Economic Research, Inc.
  10. George J. Borjas, 2001. "Does Immigration Grease the Wheels of the Labor Market?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(1), pages 69-134.
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Cited by:
  1. Miguel Angel Alcobendas & Néria Rodréquez-Planas, 2010. "Immigrants' Assimilation Process In A Segmented Labor Market," Working Papers 442, Barcelona Graduate School of Economics.
  2. Núria Rodríguez-Planas & Raquel Vegas, 2011. "Moroccans' Assimilation In Spain: Family-Based Versus Labor-Based Migration," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 119-139.
  3. Moral De Blas, Alfonso & Martín Román, Ángel & Rodríguez Caballero, Juan Carlos, 2010. "La antigüedad y las diferencias de esfuerzo entre trabajadores de distintas zonas geográficas: un estudio de los accidentes de trabajo/Seniority and Relative Effort Exercised by Workers from Differe," Estudios de Economía Aplicada, Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 28, pages 201 (20 pá, Abril.

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