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Does Immigration Raise Natives’ Income? National and Regional Evidence from Spain

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  • Catalina Amuedo-Dorantes
  • Sara de la Rica

Abstract

How immigration affects the labor market of the host country is a topic of major concern for many immigrant-receiving nations. Spain is no exception following the rapid increase in immigrant flows experienced over the past decade. We assess the impact of immigration on Spanish natives’ income by estimating the net immigration surplus accruing at the national level and at high immigrant-receiving regions while taking into account the imperfect substitutability of immigrant and native labor. Specifically, using information on the occupational densities of immigrants and natives of different skill levels, we develop a mapping of immigrant-to-native self-reported skills that reveals the combination of natives across skills that would be equivalent to an immigrant of a given self-reported skill level, which we use to account for any differences between immigrant self-reported skill levels and their effective skills according to the Spanish labor market. We find that the immigrant surplus amounts to 0.04 percent of GDP at the national level and it is even higher for some of the main immigrant-receiving regions, such as Cataluña, Valencia, Madrid, and Murcia.

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Paper provided by FEDEA in its series Working Papers with number 2008-17.

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Date of creation: May 2008
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Handle: RePEc:fda:fdaddt:2008-17

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  1. Gianmarco I. P. Ottaviano & Giovanni Peri, 2012. "Rethinking The Effect Of Immigration On Wages," Journal of the European Economic Association, European Economic Association, European Economic Association, vol. 10(1), pages 152-197, 02.
  2. Marco Manacorda & Alan Manning & Jonathan Wadsworth, 2006. "The Impact of Immigration on the Structure of Male Wages: Theory and Evidence from Britain," CEP Discussion Papers, Centre for Economic Performance, LSE dp0754, Centre for Economic Performance, LSE.
  3. 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.
  4. Gianmarco I.P. Ottaviano & Giovanni Peri, 2005. "Rethinking the Gains from Immigration: Theory and Evidence from the U.S," NBER Working Papers 11672, National Bureau of Economic Research, Inc.
  5. Giovanni Peri, 2007. "Immigrants' Complementarities and Native Wages: Evidence from California," NBER Working Papers 12956, National Bureau of Economic Research, Inc.
  6. David Card, 1996. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 747, Princeton University, Department of Economics, Industrial Relations Section..
  7. Ethan Lewis, 2003. "Local, open economies within the U.S.: how do industries respond to immigration?," Working Papers, Federal Reserve Bank of Philadelphia 04-1, Federal Reserve Bank of Philadelphia.
  8. Ciccone Antonio & Peri Giovanni, 2007. "Identifying Human Capital Externalities. Theory with Applications," Working Papers, Fundacion BBVA / BBVA Foundation 201098, Fundacion BBVA / BBVA Foundation.
  9. David Card & Thomas Lemieux, 2000. "Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis," NBER Working Papers 7655, National Bureau of Economic Research, Inc.
  10. George J. Borjas, 1995. "The Economic Benefits from Immigration," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 9(2), pages 3-22, Spring.
  11. repec:bla:restud:v:73:y:2006:i:2:p:381-412 is not listed on IDEAS
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Cited by:
  1. F. Alfonso Arellano, 2010. "Inmigrantes y periodo de residencia: descriptiva de la asimilación en materia laboral entre España y la Comunidad de Madrid," Economic Reports, FEDEA 09-2010, FEDEA.
  2. Lídia Farré & Núria Rodríguez-Planas, 2014. "Immigrants from eastern partnership (EaP) countries in Spain," IZA Journal of European Labor Studies, Springer, Springer, vol. 3(1), pages 1-28, December.
  3. Rodríguez-Planas, Núria & Vegas, Raquel, 2012. "Moroccans' Assimilation in Spain: Family-Based versus Labor-Based Migration," IZA Discussion Papers 6368, Institute for the Study of Labor (IZA).
  4. González, Libertad & Ortega, Francesc, 2011. "How do very open economies adjust to large immigration flows? Evidence from Spanish regions," Labour Economics, Elsevier, Elsevier, vol. 18(1), pages 57-70, January.
  5. Amuedo-Dorantes, Catalina & de la Rica, Sara, 2011. "Complements or substitutes? Task specialization by gender and nativity in Spain," Labour Economics, Elsevier, Elsevier, vol. 18(5), pages 697-707, October.
  6. Catalina Amuedo-Dorantes & Sara de la Rica, 2008. "Complements or Substitutes? Immigrant and Native Task Specialization in Spain," Working Papers, FEDEA 2008-35, FEDEA.

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