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

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  • Catalina Amuedo-Dorantes
  • Sara de la Rica

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.

Suggested Citation

  • Catalina Amuedo-Dorantes & Sara de la Rica, 2008. "Does Immigration Raise Natives’ Income? National and Regional Evidence from Spain," Working Papers 2008-17, FEDEA.
  • Handle: RePEc:fda:fdaddt:2008-17
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    Cited by:

    1. 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.
    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. Mihi-Ramírez Antonio & Ojeda-González Sara & Miranda-Martel María José & Agoh Eugene, 2016. "The Contribution of Migration to Economics Growth. Evidence from Spain," Open Economics, De Gruyter, vol. 1(1), pages 124-130, August.
    4. Catalina Amuedo-Dorantes & Sara de la Rica, 2008. "Complements or Substitutes? Immigrant and Native Task Specialization in Spain," Working Papers 2008-35, FEDEA.
    5. Cristina Bellés-Obrero & Nicolau Martin Bassols & Judit Vall Castello, 2021. "Safety at work and immigration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 167-221, January.
    6. Xoaquín Fernández Leiceaga & Santiago Lago Peñas & Patricio Sánchez Fernández, 2015. "¿Ha contribuido la población inmigrante a la convergencia interregional en España?," Revista de Estudios Regionales, Universidades Públicas de Andalucía, vol. 3, pages 59-82.
    7. Lídia Farré & Núria Rodríguez-Planas, 2014. "Immigrants from eastern partnership (EaP) countries in Spain," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-28, December.
    8. Mari Kangasniemi & Matilde Mas & Catherine Robinson & Lorenzo Serrano, 2012. "The economic impact of migration: productivity analysis for Spain and the UK," Journal of Productivity Analysis, Springer, vol. 38(3), pages 333-343, December.
    9. 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.
    10. Núria Rodríguez-Planas & Raquel Vegas, 2011. "Moroccans' Assimilation In Spain: Family-Based Versus Labor-Based Migration," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 119-139.
    11. Rodríguez-Planas, Núria & Farré, Lídia, 2014. "Migration, Crisis and Adjustment in an Enlarged E(M)U: The Spanish Perspective," IZA Discussion Papers 8091, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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