The effects of immigration on the productive structure of Spanish regions

Francisco Requena Silvente, Guadalupe Serrano and Joan Martín Montaner
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Guadalupe Serrano: Universitat de València
Joan Martín Montaner: Universitat Jaume I
Authors registered in the RePEc Author Service: Joan Martín-Montaner

Working Papers. Serie EC from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: Immigrants have increased their participation in Spanish labour supply from less than 3 percent in 1996 to more than 13 percent in 2005. Using the factor proportion model of production, this paper analyses whether this labour supply shock has affected the industrial structure of Spanish regions. Our best specification suggests the need to include time varying region-specific effects to capture differences in technology and prices across regions. Our results confirm that, first, labour endowment differences across regions help to explain the pattern of industry specialisation across region. Second, immigrants and natives act as complementary factors in most industries. Third, the importance of factor endowment changes is relatively small compared to production technique changes and idiosyncratic industry changes in explaining the overall changes in industrial structure over 1996-2005, being only important in the case of Building, a sector where foreign workers represent an important share of its total labour force.

Pages: 24 pages
Date: 2009-01
New Economics Papers: this item is included in nep-geo, nep-lab and nep-mig
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasec:2009-01

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