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How do Very Open Economies Absorb Large Immigration Flows? Recent Evidence from Spanish Regions

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  • Libertad Gonzalez

    (Universidad Pompeu Fabra and IAE)

  • Francesc Ortega

    (Universidad Pompeu Fabra and IAE)

Abstract

In recent years, Spain has received unprecedented immigration flows. Between 2001 and 2006 the fraction of the population born abroad more than doubled, increasing from 4.8% to 10.8%. For Spanish provinces with above-median inflows (relative to population), immigration increased the high school dropout population by 24%, while only increasing the number of college graduates by 11%. We study the different channels by which regional labor markets have absorbed the large increase in the relative supply of low educated (foreign-born)workers. We identify the exogenous supply shock using historical immigrant settlement patterns by country of origin. Using data from the Labor Force Survey and the decennial Census, we find a large expansion of employment in high immigration regions. Specifically, most industries in high-immigration regions experienced a large increase in the share of low-education employment. We do not find an effect on regions’ sectoral specialization. Overall, and perhaps surprisingly, Spanish regions have absorbed immigration flows in the same fashion as US local economies.

Suggested Citation

  • Libertad Gonzalez & Francesc Ortega, 2008. "How do Very Open Economies Absorb Large Immigration Flows? Recent Evidence from Spanish Regions," Development Working Papers 248, Centro Studi Luca d'Agliano, University of Milano.
  • Handle: RePEc:csl:devewp:248
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    Cited by:

    1. Moreno-Galbis, Eva & Tritah, Ahmed, 2016. "The effects of immigration in frictional labor markets: Theory and empirical evidence from EU countries," European Economic Review, Elsevier, vol. 84(C), pages 76-98.
    2. 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, in: María Jesús Mancebón-Torrubia & Domingo P. Ximénez-de-Embún & José María Gómez-Sancho & Gregorio Gim (ed.), Investigaciones de Economía de la Educación 5, edition 1, volume 5, chapter 41, pages 798-824, Asociación de Economía de la Educación.
    3. Abdih, Yasser & Chami, Ralph & Dagher, Jihad & Montiel, Peter, 2012. "Remittances and Institutions: Are Remittances a Curse?," World Development, Elsevier, vol. 40(4), pages 657-666.
    4. Julian Giovanni & Andrei A. Levchenko & Francesc Ortega, 2015. "A Global View Of Cross-Border Migration," Journal of the European Economic Association, European Economic Association, vol. 13(1), pages 168-202, February.
    5. 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.
    6. Catalina Amuedo-Dorantes & Sara De la Rica, 2010. "Immigrants’ responsiveness to labor market conditions and their impact on regional employment disparities: evidence from Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 1(4), pages 387-407, September.
    7. Catalina Amuedo-Dorantes & Sara de la Rica, 2008. "Complements or Substitutes? Immigrant and Native Task Specialization in Spain," Working Papers 2008-35, FEDEA.
    8. Leire Aldaz Odriozola & Begoña Eguía Peña, 2016. "Immigration and Occupational Mobility of Native Workers in Spain. A Gender Perspective," Journal of International Migration and Integration, Springer, vol. 17(4), pages 1181-1193, November.
    9. Christian Dustmann & Albrecht Glitz, 2015. "How Do Industries and Firms Respond to Changes in Local Labor Supply?," Journal of Labor Economics, University of Chicago Press, vol. 33(3), pages 711-750.
    10. Francesc Ortega & Giovanni Peri, 2014. "The Aggregate Effects of Trade and Migration: Evidence from OECD Countries," Population Economics, in: Andrés Artal-Tur & Giovanni Peri & Francisco Requena-Silvente (ed.), The Socio-Economic Impact of Migration Flows, edition 127, pages 19-51, Springer.
    11. Bertoli, S. & Fernández-Huertas Moraga, J. & Ortega, F., 2013. "Crossing the border: Self-selection, earnings and individual migration decisions," Journal of Development Economics, Elsevier, vol. 101(C), pages 75-91.
    12. Peri, Giovanni & D'Amuri, Francesco, 2010. "Immigration, Jobs and Employment Protection: Evidence from Europe," Institute of European Studies, Working Paper Series qt9rp2j8m1, Institute of European Studies, UC Berkeley.
    13. Cansu Unver, 2015. "Does Broadband Facilitate Immigration Flows?," Discussion Papers 15-01, Department of Economics, University of Birmingham.
    14. Gianfranco De Simone & Miriam Manchin, 2008. "Brain Drain with FDI Gain? Factor Mobility between Eastern and Western Europe," Development Working Papers 255, Centro Studi Luca d'Agliano, University of Milano.
    15. Francesco D'Amuri & Giovanni Peri, 2016. "Immigration, Jobs, And Employment Protection: Evidence From Europe Before And During The Great Recession," World Scientific Book Chapters,in: The Economics of International Migration, chapter 5, pages 153-185 World Scientific Publishing Co. Pte. Ltd..
    16. José Silva & Javier Vázquez-Grenno, 2011. "The ins and outs of unemployment and the assimilation of recent immigrants in Spain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1309-1330, October.

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    More about this item

    Keywords

    Immigration; Open Economies; Rybcszynski; Instrumental Variables;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • F1 - International Economics - - Trade
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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