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The immigration surplus and the substitutability of immigrant and native labor: evidence from Spain

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  • Catalina Amuedo-Dorantes
  • Sara 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, as a consequence of the rapid increase in immigrant flows experienced over the past few decades. We assess the impact of immigration on Spanish natives’ incomes by estimating the net immigration surplus (IS) under the assumption of perfect and imperfect substitutabilities between immigrant and native labor of similar educational attainment. To address the imperfect substitutability between immigrant and native labor, we use information on the occupational distribution of immigrants and natives of similar educational attainment to learn about the equivalency of skilled immigrants to skilled and unskilled natives. The results show that the magnitude of the IS significantly rises with the degree of imperfect substitutability between immigrant and native labor. Copyright Springer-Verlag 2013

Suggested Citation

  • Catalina Amuedo-Dorantes & Sara Rica, 2013. "The immigration surplus and the substitutability of immigrant and native labor: evidence from Spain," Empirical Economics, Springer, vol. 44(2), pages 945-958, April.
    • Handle: RePEc:spr:empeco:v:44:y:2013:i:2:p:945-958
    DOI: 10.1007/s00181-011-0534-4
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    Citations

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    Cited by:

    1. Alexandra M. Espinosa & Ignacio Díaz-Emparanza, 2021. "The Long-term Relationship Between International Labour Migration and Unemployment in Spain," Journal of International Migration and Integration, Springer, vol. 22(1), pages 145-166, March.
    2. Sanchis-Guarner, Rosa, 2023. "Decomposing the impact of immigration on house prices," Regional Science and Urban Economics, Elsevier, vol. 100(C).
    3. Ronja Grundsten, 2015. "Immigration and Income inequality in Sweden," LIS Working papers 638, LIS Cross-National Data Center in Luxembourg.
    4. Rosa Sanchis-Guarner, 2014. "First-Come First-Served: Identifying the Demand Effect of Immigration Inflows on House Prices," SERC Discussion Papers 0160, Centre for Economic Performance, LSE.
    5. 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.
    6. Amaia Palencia-Esteban, 2022. "Immigration, childcare and gender differences in the Spanish labor market," Working Papers 610, ECINEQ, Society for the Study of Economic Inequality.

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    More about this item

    Keywords

    Immigration surplus; Imperfect substitutes; Occupational segregation; Spain; J61; F22;
    All these keywords.

    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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