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How Relevant Is the Origin of Human Capital for Immigrant Wages? Evidence from Spain

Author

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  • Esteban Sanromá
  • Raúl Ramos
  • Hipólito Simón

Abstract

The objective of this article is to analyse the role played by the different components of human capital in the wage determination of immigrants in the Spanish labour market. Using microdata from the Encuesta Nacional de Inmigrantes, we find that human capital of immigrants acquired in Spain presents higher returns than human capital obtained in home countries, reflecting the limited international transferability of the latter. This result is reinforced by the strong heterogeneity observed in wage returns to different kinds of human capital across immigrants from different origins and, in particular, by the fact that immigrants with the higher returns to human capital acquired in their home countries are those coming from other developed countries and Latin America, the two regions more similar to Spain in terms of development and/or culture.

Suggested Citation

  • Esteban Sanromá & Raúl Ramos & Hipólito Simón, 2015. "How Relevant Is the Origin of Human Capital for Immigrant Wages? Evidence from Spain," Journal of Applied Economics, Taylor & Francis Journals, vol. 18(1), pages 149-172, May.
    • Handle: RePEc:taf:recsxx:v:18:y:2015:i:1:p:149-172
    DOI: 10.1016/S1514-0326(15)30007-6
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    Cited by:

    1. Raul Ramos, 2019. "Migration aspirations among youth in the Middle East and North Africa region," Journal of Geographical Systems, Springer, vol. 21(4), pages 487-507, December.
    2. Ramos, Raul, 2017. "Migration Aspirations among NEETs in Selected MENA Countries," IZA Discussion Papers 11146, Institute of Labor Economics (IZA).
    3. Koumenta, Maria & Pagliero, Mario & Rostam-Afschar, Davud, 2022. "Occupational Regulation, Institutions, and Migrants’ Labor Market Outcomes," Labour Economics, Elsevier, vol. 79(C).
    4. Maria A. Cattaneo, 2022. "What wages do people expect for vocational and academic education backgrounds in Switzerland?," Economics of Education Working Paper Series 0197, University of Zurich, Department of Business Administration (IBW).
    5. Nico Ochmann, 2024. "Wages of UK immigrant men across generations: who catches up?," Oxford Economic Papers, Oxford University Press, vol. 76(2), pages 395-411.
    6. Martin Lange & Friedhelm Pfeiffer, 2019. "The human capital selection of young males seeking asylum in Germany," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-14, December.
    7. Jain, Apoorva & Peter, Klara Sabirianova, 2017. "Limits to Wage Growth: Understanding the Wage Divergence between Immigrants and Natives," IZA Discussion Papers 10891, Institute of Labor Economics (IZA).
    8. Jain, Apoorva & Peter, Klara Sabirianova, 2017. "A Joint Hazard-Longitudinal Model of the Timing of Migration, Immigrant Quality, and Labor Market Assimilation," IZA Discussion Papers 10887, Institute of Labor Economics (IZA).
    9. McCully, Brett, 2021. "Immigrants, Legal Status, and Illegal Trade," MPRA Paper 109610, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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