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Immigrant wages in the Spanish labour market: does the origin of human capital matter?

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Author Info
Esteban Sanromà () (Universitat de Barcelona)
Raúl Ramos () (Universitat de Barcelona)
Hipólito Simón () (Universitat de Alicante)

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Abstract

The aim of this paper is to analyse the role played by the different components of human capital in the wage determination of recent immigrants within the Spanish labour market. Using microdata from the Encuesta Nacional de Inmigrantes 2007, the paper examines returns to human capital of immigrants, distinguishing between human capital accumulated in their home countries and in Spain. It also examines the impact on wages of the legal status. The evidence shows that returns to host country sources of human capital are higher than returns to foreign human capital, reflecting the limited international transferability of the latter. The only exception occurs in the case of immigrants from developed countries and immigrants who have studied in Spain. Whatever their home country, they obtain relatively high wage returns to education, including the part not acquired in the host country. Having legal status in Spain is associated with a substantial wage premium of around 15%. Lastly, the overall evidence confirms the presence of a strong heterogeneity in wage returns to different kinds of human capital and in the wage premium associated to the legal status as a function of the immigrants’ area of origin.

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Publisher Info
Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2009/8.

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Length: 33 pages
Date of creation: 2009
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Handle: RePEc:ieb:wpaper:2009/7/doc2009-8

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Related research
Keywords: Immigration; wages; human capital.;

Other versions of this item:

Find related papers by JEL classification:
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

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References listed on IDEAS
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    Other versions:
  8. 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. [Downloadable!] (restricted)
  9. Sanromá, Esteve & Ramos, Raul & Simón, Hipólito, 2008. "The Portability of Human Capital and Immigrant Assimilation: Evidence for Spain," IZA Discussion Papers 3649, Institute for the Study of Labor (IZA). [Downloadable!]
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  14. Amelie Constant & Douglas S. Massey, 2003. "Self-selection, earnings, and out-migration: A longitudinal study of immigrants to Germany," Journal of Population Economics, Springer, vol. 16(4), pages 631-653, November. [Downloadable!] (restricted)
    Other versions:
  15. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier. [Downloadable!] (restricted)
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    Other versions:
  17. Ken Clark & Joanne Lindley, 2009. "Immigrant assimilation pre and post labour market entry: evidence from the UK Labour Force Survey," Journal of Population Economics, Springer, vol. 22(1), pages 175-198, January. [Downloadable!] (restricted)
  18. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence from the UK," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 45(2), pages 236-256, 06. [Downloadable!] (restricted)
  19. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760 Elsevier. [Downloadable!] (restricted)
  20. Bernt Bratsberg & Erling Barth & Oddbjørn Raaum, 2006. "Local Unemployment and the Relative Wages of Immigrants: Evidence from the Current Population Surveys," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 243-263, 05. [Downloadable!] (restricted)
    Other versions:
  21. Joop Hartog & Aslan Zorlu, 2009. "How important is homeland education for refugees’ economic position in The Netherlands?," Journal of Population Economics, Springer, vol. 22(1), pages 219-246, January. [Downloadable!] (restricted)
    Other versions:
  22. Barry R. Chiswick & Yew Liang Lee & Paul W. Miller, 2005. "Immigrant Earnings: A Longitudinal Analysis," Review of Income and Wealth, Blackwell Publishing, vol. 51(4), pages 485-503, December. [Downloadable!] (restricted)
    Other versions:
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