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Immigrants' Responsiveness to Labor Market Conditions and Its Implications on Regional Disparities: Evidence from Spain

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Author Info

  • Amuedo-Dorantes, Catalina

    ()
    (San Diego State University)

  • de la Rica, Sara

    ()
    (University of the Basque Country)

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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1557.

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Length: 45 pages
Date of creation: Apr 2005
Date of revision:
Publication status: published in: SERIEs: Journal of the Spanish Economic Association, 2010, 1 (1), 387-407
Handle: RePEc:iza:izadps:dp1557

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Related research

Keywords: immigrant location; immigrant workers; regional disparities; immigrant responsiveness; international migration; labor market conditions;

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References

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  1. 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, in: Social Protection versus Economic Flexibility: Is There a Trade-Off?, pages 265-300 National Bureau of Economic Research, Inc.
  2. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
  3. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 19(1), pages 22-64, January.
  4. Raquel Carrasco & Juan Ramón García & Ana Carolina Ortega, . "The Effect of Immigration on the Employment Opportunities of Native-Born Workers: Some Evidence for Spain," Working Papers 2004-17, FEDEA.
  5. 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.
  6. Borjas, George J & Freeman, Richard B & Katz, Lawrence, 1996. "Searching for the Effect of Immigration on the Labor Market," American Economic Review, American Economic Association, American Economic Association, vol. 86(2), pages 246-51, May.
  7. Olympia Bover & Pilar Velilla, 1999. "Migrations in Spain: Historical Background and Current Trends," Banco de Espa�a Working Papers 9909, Banco de Espa�a.
  8. 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.
  9. 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.
  10. repec:fth:baesse:9909 is not listed on IDEAS
  11. Del Boca, Daniela & Venturini, Alessandra, 2003. "Italian Migration," IZA Discussion Papers 938, Institute for the Study of Labor (IZA).
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Cited by:
  1. Pablo Swedberg, 2010. "The impact of education and host language skills on the labor market outcomes of immigrants in Spain," Investigaciones de Economía de la Educación volume 5, Asociación de Economía de la Educación, in: María Jesús Mancebón-Torrubia & Domingo P. Ximénez-de-Embún & José María Gómez-Sancho & Greg (ed.), Investigaciones de Economía de la Educación 5, edition 1, volume 5, chapter 41, pages 798-824 Asociación de Economía de la Educación.
  2. Libertad González Luna & Francesc Ortega, 2007. "How do very open economies adjust to large immigration flows? Recent evidence from Spanish regions," Economics Working Papers 1059, Department of Economics and Business, Universitat Pompeu Fabra.
  3. Gonzalez, Libertad & Ortega, Francesc, 2008. "How Do Very Open Economies Absorb Large Immigration Flows? Recent Evidence from Spanish Regions," IZA Discussion Papers 3311, Institute for the Study of Labor (IZA).
  4. Mario Izquierdo & Aitor Lacuesta & Raquel Vegas, 2009. "Assimilation of immigrants in Spain: A longitudinal analysis," Banco de Espa�a Working Papers 0904, Banco de Espa�a.
  5. Alexander W. Hoffmaister, 2006. "Barriers to Retail Competition and Prices," IMF Working Papers 06/231, International Monetary Fund.
  6. Dolores Garcia Crespo & Antonio Casquero Tomás, 2011. "Inserción laboral de los jóvenes en España: Inmigrantes vs nativos," Investigaciones de Economía de la Educación volume 6, Asociación de Economía de la Educación, in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 43, pages 693-706 Asociación de Economía de la Educación.
  7. Farré, Lídia & Rodríguez-Planas, Núria, 2013. "Immigrants from Eastern Partnership (EaP) Countries in Spain," IZA Discussion Papers 7558, Institute for the Study of Labor (IZA).
  8. Juan J. Dolado & Pablo Vázquez & Varios Autores, 2008. "Ensayos sobre los efectos económicos de la inmigración en España," Economic Reports 01-08, FEDEA.
  9. Cristina Fernández & Carolina Ortega, 2008. "Labor market assimilation of immigrants in Spain: employment at the expense of bad job-matches?," Spanish Economic Review, Springer, Springer, vol. 10(2), pages 83-107, June.

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