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The Effects of Migration on the Relative Demand of Skilled versus Unskilled Labour: Evidence from Spain

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

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.

Suggested Citation

  • Dolado, Juan J. & Duce, Rosa & Jimeno, Juan F, 1996. "The Effects of Migration on the Relative Demand of Skilled versus Unskilled Labour: Evidence from Spain," CEPR Discussion Papers 1476, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1476
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    Cited by:

    1. 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.
    2. Joan Monras & Javier Vázquez-Grenno & Ferran Elias, 2017. "Understanding the Effects of Legalizing Undocumented Immigrants," RF Berlin - CReAM Discussion Paper Series 1708, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    3. Alessandra VENTURINI & Claudia VILLOSIO, 2006. "Labour market effects of immigration into Italy: An empirical analysis," International Labour Review, International Labour Organization, vol. 145(1-2), pages 91-118, March.
    4. 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.
    5. Isil Erol & Umut Unal, 2021. "Employment Effects of Immigration to Germany in the Period of Migration Policy Liberalization, 2005–2018," MAGKS Papers on Economics 202104, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Monras, Joan & Vázquez-Grenno, Javier & Elias, Ferran, 2018. "Understanding the Effects of Granting Work Permits to Undocumented Immigrants," CEPR Discussion Papers 12726, C.E.P.R. Discussion Papers.
    7. Liesbet Okkerse, 2008. "How To Measure Labour Market Effects Of Immigration: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 1-30, February.
    8. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
    9. Simonetta LONGHI & Peter NIJKAMP & Jacques POOT, 2008. "Meta-Analysis Of Empirical Evidence On The Labour Market Impacts Of Immigration," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 27, pages 161-191.
    10. Agiomirgianakis, George & Zervoyianni, Athina, 2001. "Macroeconomic equilibrium with illegal immigration," Economic Modelling, Elsevier, vol. 18(2), pages 181-202, April.
    11. Javier Ferri & Antonio G. Gómez-Plana & Joan A. Martín-Montaner, 2006. "Illegal immigration booms and welfare in the host country," European Journal of Population, Springer;European Association for Population Studies, vol. 22(4), pages 353-370, December.
    12. Alexander Kemnitz, 2005. "Discrimination and Resistance to Low‐skilled Immigration," LABOUR, CEIS, vol. 19(2), pages 177-190, June.
    13. Isil Erol & Umut Unal, 2022. "Employment effects of immigration to Germany in the period of migration policy liberalization, 2005–2018," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 12(3), pages 531-565, September.
    14. Carraro, Carlo & Soubeyran, Antoine, 2005. "Labour demand with heterogeneous workers: Migrations and unemployment," Research in Economics, Elsevier, vol. 59(2), pages 119-136, June.
    15. Stefano STAFFOLANI & Enzo VALENTINI, 2009. "Does Immigration Raise Blue and White Collar Wages of Natives?," Working Papers 330, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    16. 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.
    17. Joshua D. Angrist & Adriana D. Kugler, 2003. "Protective or counter-productive? labour market institutions and the effect of immigration on eu natives," Economic Journal, Royal Economic Society, vol. 113(488), pages 302-331, June.
    18. Bonin, Holger, 2017. "The Potential Economic Benefits of Education of Migrants in the EU," IZA Research Reports 75, Institute of Labor Economics (IZA).
    19. Alessandra Venturini & Claudia Villosio, 2004. "Labour Market Effects of Immigration: an Empirical Analysis Based on Italian Data," CHILD Working Papers wp17_04, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    20. Stefano Staffolani & Enzo Valentini, 2010. "Does Immigration Raise Blue and White Collar Wages of Natives? The Case of Italy," LABOUR, CEIS, vol. 24(3), pages 295-310, September.
    21. Kemnitz, Alexander, 2003. "Unemployment, Technology and the Welfare Effects of Immigration," Discussion Papers 611, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    22. Giovanni Peri, 2005. "Skills and Talent of Immigrants:A Comparison between the European Union and the United States," Working Papers 19, University of California, Davis, Department of Economics.
    23. Peri, Giovanni, 2005. "Skills and Talent of Immigrants: A Comparison between the European Union and the United States," Institute of European Studies, Working Paper Series qt78t8m1n7, Institute of European Studies, UC Berkeley.
    24. 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.

    More about this item

    Keywords

    Heterogeneous Labour; Immigration; Unions; Wages;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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