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

35 Pages Posted: 19 Aug 2008

See all articles by Catalina Amuedo-Dorantes

Catalina Amuedo-Dorantes

San Diego State University - Department of Economics; IZA Institute of Labor Economics

Sara de la Rica

Universidad del Pais Vasco; IZA Institute of Labor Economics

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.

Keywords: international migration, regional, national, immigration surplus, Spain

JEL Classification: J61, F22

Suggested Citation

Amuedo-Dorantes, Catalina and de la Rica, Sara, Does Immigration Raise Natives Income? National and Regional Evidence from Spain. IZA Discussion Paper No. 3486. Available at SSRN: https://ssrn.com/abstract=1237042 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Catalina Amuedo-Dorantes (Contact Author)

San Diego State University - Department of Economics ( email )

5500 Campanile Drive
San Diego, CA 92182
United States
619-594-1663 (Phone)
619-594-5062 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Sara De la Rica

Universidad del Pais Vasco ( email )

Barrio Sarriena s/n
Leioa, Bizkaia 48940
Spain

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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