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Employment Dynamics Of Immigrants Versus Natives: Evidence From The Boom-Bust Period In Spain, 2000–2011

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  • Raquel Carrasco
  • J. Ignacio García-Pérez

Abstract

type="main" xml:id="ecin12175-abs-0001"> This article studies whether the durations in unemployment and employment for immigrants and natives respond differently to changes in economic conditions and to the receipt of unemployment benefits. Using Spanish administrative data for the period 2000–2011, we estimate multi-spell duration models that disentangle unobserved heterogeneity from true duration dependence. Our findings suggest that immigrants are more sensitive to changes in economic conditions both in terms of unemployment and employment hazards. The effect of the business cycle is not constant but decreases with duration at a higher rate among immigrants. We provide evidence that the higher job separation rates and lower capital-labor complementarity of immigrants are mechanisms that are possibly compatible with these results. We also find evidence of a disincentive effect of unemployment benefits on unemployment duration, which is stronger for immigrants, but only at the beginning of the unemployment spell, especially under good economic conditions. Finally, unemployment benefits increase job match quality only for native workers with temporary contracts. (JEL J64, J61, C23, C41, J65)

Suggested Citation

  • Raquel Carrasco & J. Ignacio García-Pérez, 2015. "Employment Dynamics Of Immigrants Versus Natives: Evidence From The Boom-Bust Period In Spain, 2000–2011," Economic Inquiry, Western Economic Association International, vol. 53(2), pages 1038-1060, April.
    • Handle: RePEc:bla:ecinqu:v:53:y:2015:i:2:p:1038-1060
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    File URL: http://hdl.handle.net/10.1111/ecin.2015.53.issue-2
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    Citations

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    Cited by:

    1. Wang, Cheng & Williamson, Stephen, 1996. "Unemployment insurance with moral hazard in a dynamic economy," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 44(1), pages 1-41, June.
    2. Wiji Arulampalam & Andrea Papini, 2023. "Tax Progressivity and Self-Employment Dynamics," The Review of Economics and Statistics, MIT Press, vol. 105(2), pages 376-391, March.
    3. Samuel Bentolila & J. Ignacio García-Pérez & Marcel Jansen, 2017. "Are the Spanish long-term unemployed unemployable?," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 8(1), pages 1-41, March.
    4. Samuel Bentolila & J. Ignacio García-Pérez & Marcel Jansen, 2017. "Are the Spanish Long-Term Unemployed Unemployable?," Working Papers wp2018_1707, CEMFI.
    5. Chassamboulli, Andri & Fontaine, Idriss & Gálvez-Iniesta, Ismael & Gomes, Pedro, 2024. "Immigration and labour market flows," Labour Economics, Elsevier, vol. 86(C).
    6. Vicente Núñez-Antón & Juan Manuel Pérez-Salamero González & Marta Regúlez-Castillo & Carlos Vidal-Meliá, 2020. "Improving the Representativeness of a Simple Random Sample: An Optimization Model and Its Application to the Continuous Sample of Working Lives," Mathematics, MDPI, vol. 8(8), pages 1-27, July.
    7. Gálvez-Iniesta Ismael, 2022. "The Cyclicality of Immigrant Wages and Labour Market Flows: Evidence from Spain," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 16(1), pages 90-122, January.
    8. Lo, Simon M.S. & Mammen, Enno & Wilke, Ralf A., 2020. "A nested copula duration model for competing risks with multiple spells," Computational Statistics & Data Analysis, Elsevier, vol. 150(C).
    9. NAGORE GARCIA Amparo & VAN SOEST Arthur, 2016. "Unemployment Exits Before and During the Crisis," LISER Working Paper Series 2016-14, Luxembourg Institute of Socio-Economic Research (LISER).
    10. Amparo Nagore García & Arthur Soest, 2017. "Unemployment Exits Before and During the Crisis," LABOUR, CEIS, vol. 31(4), pages 337-368, December.
    11. Carrasco, Raquel & Gálvez-Iniesta, Ismael & Jerez, Belén, 2024. "Do temporary help agencies help? Employment transitions for low-skilled workers," Labour Economics, Elsevier, vol. 90(C).
    12. Mercè Sala-Rios & Teresa Torres-Solé & Mariona Farré-Perdiguer, 2018. "Immigrants’ employment and the business cycle in Spain: taking account of gender and origin," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 463-490, August.
    13. Florentino Felgueroso & José-Ignacio García-Pérez & Marcel Jansen & David Troncoso-Ponce, 2018. "The Surge in Short-Duration Contracts in Spain," De Economist, Springer, vol. 166(4), pages 503-534, December.
    14. Lo, Simon M.S. & Shi, Shuolin & Wilke, Ralf A., 2025. "A copula duration model with dependent states and spells," Computational Statistics & Data Analysis, Elsevier, vol. 204(C).

    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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