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Assimilation of immigrants in Spain: A longitudinal analysis

Mario Izquierdo (), Aitor Lacuesta () and Raquel Vegas ()
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Raquel Vegas: FEDEA

No 904, Working Papers from Banco de España, Working Papers Homepage

Abstract: In this paper we use the Continuous Sample of Working Histories 2005 (MCVL2005) to analyze the earnings assimilation of migrants from outside the EU-15 in Spain. Using our panel dataset we show that immigrants reduce around the half of the initial wage gap respect to natives the first 5 to 6 years after arrival. However, no further reductions of the remaining wage gap are estimated. We also show that results based on cross-section data are downward biased since an important increase in the quality of migrants has taken place over the recent years. This skill upgrading of new immigrant cohorts is evident in the Spanish case as well as the depreciation of the value of most of the experience that is brought from abroad. We can associate the improvement in the skill of immigrants to a change in the composition of new entrants. An important mechanism underlying the assimilation is the higher likelihood of recent immigrants in changing jobs among different sectors and firms, but also improving their situation within the same firm. Finally, some caveats should be taken into account when interpreting our results given that immigration phenomenon is quite recent in the Spanish labour market and it has taken place in an especially positive economic environment.

Keywords: Immigration; assimilation; longitudinal data; selection; human capital (search for similar items in EconPapers)
JEL-codes: J31 J61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab and nep-mig
Date: 2009-03
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Journal Article: Assimilation of immigrants in Spain: A longitudinal analysis (2009) Downloads
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