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How are you doing in your grandpa’s country? Labour market performance of Latin American immigrants in Spain

Author

Listed:
  • Antón, José-Ignacio
  • Carrera, Miguel
  • Muñoz de Bustillo, Rafael

Abstract

This paper analyses wage differentials between local and foreign workers from Latin America and the Caribbean in Spain, which was traditionally a country of emigrants, being precisely Hispanic America the main host region of Spanish migrants during the 19th and 20th centuries. In addition, we also compute earnings. The paper exploits the Earnings Structure Survey 2006, which is the first nationally representative sample of both foreign and Spanish employees. Using the Machado-Mata econometric procedure, wage differentials between locals and foreigners are decomposed into the gap related to characteristics and the one due to different returns on endowments (i.e., discrimination). First, we find that, in absolute terms, the latter component grows across wage distribution, reflecting the existence of a kind of glass ceiling. Second, there seem not to be significant wage gap between Latin American and the last of foreign employees, probably because non-native workers are employed in low-skill jobs.

Suggested Citation

  • Antón, José-Ignacio & Carrera, Miguel & Muñoz de Bustillo, Rafael, 2009. "How are you doing in your grandpa’s country? Labour market performance of Latin American immigrants in Spain," MPRA Paper 15051, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:15051
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    File URL: https://mpra.ub.uni-muenchen.de/15051/1/MPRA_paper_15051.pdf
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    References listed on IDEAS

    as
    1. Francisco L. Rivera-Batiz, 2007. "How Do Migrants from Latin America and the Caribbean Fare in the US Labour Market?," The World Economy, Wiley Blackwell, vol. 30(9), pages 1399-1429, September.
    2. Cristina Fernández & Carolina Ortega, 2008. "Labor market assimilation of immigrants in Spain: employment at the expense of bad job-matches?," Spanish Economic Review, Springer;Spanish Economic Association, vol. 10(2), pages 83-107, June.
    3. Raquel Carrasco & Juan Jimeno & A. Ortega, 2008. "The effect of immigration on the labor market performance of native-born workers: some evidence for Spain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 627-648, July.
    4. Javier Gardeazabal & Arantza Ugidos, 2005. "Gender wage discrimination at quantiles," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(1), pages 165-179, July.
    5. Sara Rica & Juan Dolado & Vanesa Llorens, 2008. "Ceilings or floors? Gender wage gaps by education in Spain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 751-776, July.
    6. Raquel Carrasco & Juan Ramón García & Ana Carolina Ortega, "undated". "The Effect of Immigration on the Employment Opportunities of Native-Born Workers: Some Evidence for Spain," Working Papers 2004-17, FEDEA.
    7. Pia Orrenius & Madeline Zavodny, 2009. "Do immigrants work in riskier jobs?," Demography, Springer;Population Association of America (PAA), vol. 46(3), pages 535-551, August.
    8. Melly, Blaise, 2005. "Decomposition of differences in distribution using quantile regression," Labour Economics, Elsevier, vol. 12(4), pages 577-590, August.
    9. Barth, Erling & Dale-Olsen, Harald, 2009. "Monopsonistic discrimination, worker turnover, and the gender wage gap," Labour Economics, Elsevier, vol. 16(5), pages 589-597, October.
    10. Kenneth J. Arrow, 1998. "What Has Economics to Say about Racial Discrimination?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 91-100, Spring.
    11. Mats Hammarstedt & Ghazi Shukur, 2006. "Immigrants' Relative Earnings in Sweden - A Cohort Analysis," LABOUR, CEIS, vol. 20(2), pages 285-323, June.
    12. Juan Canal-Domínguez & César Rodríguez-Gutiérrez, 2008. "Analysis of wage differences between native and immigrant workers in Spain," Spanish Economic Review, Springer;Spanish Economic Association, vol. 10(2), pages 109-134, June.
    13. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    14. Hunt, Priscillia, 2008. "Are immigrants so stuck to the floor that the ceiling is irrelevant?," The Warwick Economics Research Paper Series (TWERPS) 838, University of Warwick, Department of Economics.
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    Citations

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    Cited by:

    1. José-Ignacio Antón & Rafael Muñoz de Bustillo & Miguel Carrera, 2010. "From guests to hosts: immigrant-native wage differentials in Spain," International Journal of Manpower, Emerald Group Publishing, vol. 31(6), pages 645-659, September.

    More about this item

    Keywords

    Immigration; Wage differentials; Latin America; Spain; Quantile regression.;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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