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

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  • Amuedo-Dorantes, Catalina

    ()
    (San Diego State University)

  • de la Rica, Sara

    ()
    (University of the Basque Country)

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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3486.

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Length: 35 pages
Date of creation: May 2008
Date of revision:
Publication status: published as 'The Immigration Surplus and the Substitutability of Immigrant and Native Labor: Evidence from Spain", Empirical Economics 2011, [online first]
Handle: RePEc:iza:izadps:dp3486

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Keywords: immigration surplus; national; regional; international migration; Spain;

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References

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  1. Ottaviano, Gianmarco I. P. & Peri, Giovanni, 2007. "Rethinking the effects of immigration on wages," HWWI Research Papers 3-8, Hamburg Institute of International Economics (HWWI).
  2. repec:bla:restud:v:73:y:2006:i:2:p:381-412 is not listed on IDEAS
  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, vol. 19(1), pages 22-64, January.
  4. George J. Borjas, 1994. "The Economic Benefits from Immigration," NBER Working Papers 4955, National Bureau of Economic Research, Inc.
  5. Antonio Ciccone & Giovanni Peri, 2006. "Identifying Human-Capital Externalities: Theory with Applications," Review of Economic Studies, Oxford University Press, vol. 73(2), pages 381-412.
  6. 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, vol. 118(4), pages 1335-1374, November.
  7. 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.
  8. Marco Manacorda & Alan Manning & Jonathan Wadsworth, 2006. "The impact of immigration on the structure of male wages: theory and evidence from Britain," LSE Research Online Documents on Economics 19797, London School of Economics and Political Science, LSE Library.
  9. 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.
  10. Giovanni Peri, 2007. "Immigrants' Complementarities and Native Wages: Evidence from California," NBER Working Papers 12956, National Bureau of Economic Research, Inc.
  11. Ethan Lewis, 2003. "Local, open economies within the U.S.: how do industries respond to immigration?," Working Papers 04-1, Federal Reserve Bank of Philadelphia.
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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 09-2010, FEDEA.
  2. Amuedo-Dorantes, Catalina & de la Rica, Sara, 2011. "Complements or substitutes? Task specialization by gender and nativity in Spain," Labour Economics, Elsevier, vol. 18(5), pages 697-707, October.
  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, vol. 18(1), pages 57-70, January.
  5. Catalina Amuedo-Dorantes & Sara de la Rica, 2008. "Complements or Substitutes? Immigrant and Native Task Specialization in Spain," CReAM Discussion Paper Series 0816, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  6. Lídia Farré & Núria Rodríguez-Planas, 2014. "Immigrants from eastern partnership (EaP) countries in Spain," IZA Journal of European Labor Studies, Springer, vol. 3(1), pages 1-28, December.

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