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The effects of migration on the relative demand of skilled versus unskilled labour: Evidence from Spain

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  • Juan J. Dolado
  • Juan F. Jimeno
  • Rosa Duce

Abstract

In this paper we construct a simple model of the effects of immigration on the labour market outcomes of natives. In this model, skilled and unskilled labour are substitutes, immigrants are complementary to the former, and wages are determined by bargaining. We are able to prove that, irrespective of the degree of competition in the market for skilled labour, there are sufficient conditions for immigration to raise total employment. We then estimate the effects of immigration on wages and employment of both types of workers across Spanish provinces following the lifting of some restrictions on migration policy in 1991. We find little evidence that the subsequent inflows of immigrants are associated with negative effects on both wages and employment of less-skilled natives.

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Paper provided by FEDEA in its series Working Papers with number 96-20.

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Handle: RePEc:fda:fdaddt:9620

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Cited by:
  1. S. Longhi & P. Nijkamp & J. Poot, 2008. "Meta-Analysis of Empirical Evidence on the Labour Market Impacts of Immigration," Population Studies Centre Discussion Papers dp-67, University of Waikato, Population Studies Centre.
  2. Sari Pekkala, 2005. "Economic Impacts of Immigration: A Survey," Discussion Papers 362, Government Institute for Economic Research Finland (VATT).
  3. Willi Leibfritz & Paul O'Brien & Jean-Christophe Dumont, 2003. "Effects of Immigration on Labour Markets and Government Budgets - An Overview," CESifo Working Paper Series 874, CESifo Group Munich.
  4. Joshua D. Angrist & Adriana D. Kugler, 2001. "Protective or counter-productive? Labor market institutions and the effect of immigration on EU natives," Economics Working Papers 587, Department of Economics and Business, Universitat Pompeu Fabra.
  5. Joshua Angrist & Adriana Kugler, 2001. "Protective or Counter-Productive? European Labor Market Institutions and the Effect of Immigrants on EU Natives," NBER Working Papers 8660, National Bureau of Economic Research, Inc.
  6. Raquel Fonseca, 2003. "On the Interaction between Unemployment and Inter-regional Mobility," CSEF Working Papers 105, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  7. Carraro, Carlo & Soubeyran, Antoine, 2005. "Labour demand with heterogeneous workers: Migrations and unemployment," Research in Economics, Elsevier, vol. 59(2), pages 119-136, June.
  8. Angrist, Joshua & Kugler, Adriana, 2002. "Protective or Counter-Productive? Labor Market Institutions and the Effect Immigration on EU Natives," IZA Discussion Papers 433, Institute for the Study of Labor (IZA).

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