Immigrant Relative Wages at the Great Recession: Evidence with Matched Employer‐Employee Data for Spain

31 Pages Posted: 10 Jan 2017

Date Written: January 2017

Abstract

The article examines relative wages of immigrants in Spain, with a particular focus on the impact of the Great Recession. The empirical analysis is restricted to men and is based on matched employer‐employee microdata and the decomposition techniques of Juhn et al. (1991, 1993) and Fortin et al. (2011). Our results show that the significant native‐immigrant wage gap that exists both in terms of average wages and of differentials along the wage distribution is essentially explained by differences in the endowments of observed characteristics so that, in general, immigrants tend to receive a similar wage treatment than Spaniards with analogous observed attributes. On the other hand, the Great Recession has had a noticeable impact on the relative wages of immigrants, given that the significant increase of the native‐immigrant wage gap observed during the previous expansionary period was mitigated during the economic downturn due to composition effects arising from the severe employment destruction pattern.

Keywords: native‐immigrant wage gap, matched employer‐employee microdata, Fortin‐Lemieux‐Firpo decomposition, Juhn‐Murphy‐Pierce decomposition

JEL Classification: J15, J31

Suggested Citation

Murillo Huertas, Inés P. and Simon, Hipolito, Immigrant Relative Wages at the Great Recession: Evidence with Matched Employer‐Employee Data for Spain (January 2017). Bulletin of Economic Research, Vol. 69, Issue 1, pp. 77-107, 2017, Available at SSRN: https://ssrn.com/abstract=2896443 or http://dx.doi.org/10.1111/boer.12089

Inés P. Murillo Huertas

University of Extremadura ( email )

Avenida de la Universidad s/n
Caceres, 10071
Spain

Hipolito Simon (Contact Author)

Universidad de Alicante ( email )

Campus de San Vicente
Carretera San Vicente del Raspeig
San Vicente del Raspeig, Alicante 03690
Spain

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