A spatial approach to the impact of immigration on wages: evidence from Spain

María Gutiérrez-Portilla, José Villaverde, Adolfo Maza and Maria Hierro

Regional Studies, 2020, vol. 54, issue 4, 505-514

Abstract: On the basis of a spatial wage-curve equation, this paper analyses the effect of immigration on average wages across Spanish provinces (NUTS-3) over the period 2004–15. To do so, a spatial panel Durbin model is estimated. The results reveal that there exists a small negative effect, which is mainly determined by the presence of spillovers. Moreover, they reveal that the average wage of a particular province depends positively on its productivity level and the share of the manufacturing industry, and negatively on its rate of unemployment and the share of the service sector.

Date: 2020
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DOI: 10.1080/00343404.2018.1424994

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