The Cushioning Effect of Immigrant Mobility: Evidence from the Great Recession in Spain
PSE Working Papers from HAL
This paper provides the first direct evidence on how the geographical mobility of immigrants cushions natives during a labor demand shock. Spain was one of the hardest-hit economies during the Great Recession. Faced with a drop in the local labor demand, immigrant workers moved within Spain or left the country, generating significant decreases in local labor supply. Focusing on this episode, I use microdata from municipal registers and longitudinal Spanish administrative data to study the effects of outflow of the immigrant population from provinces on the wages and employment of the natives. I build a shift-share instrument based on the past settlements of the immigrant population across Spain to instrument outflows and argue for a causal relationship. I find that outflow of immigrants slowed down the decline in employment and wage of natives, especially of those with higher substitutability with immigrants. Moreover, I find that increased transitions from unemployment and inactivity to employment drive the positive employment effects, while wage effects are limited to those who were already employed. These findings reveal that the higher geographical mobility of immigrants cushions the natives during a demand shock.
Keywords: Immigrant mobility; Wages; Employment; Local labor market (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-mig and nep-ure
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-03000365
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: The Cushioning Effect of Immigrant Mobility: Evidence from the Great Recession in Spain (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hal:psewpa:halshs-03000365
Access Statistics for this paper
More papers in PSE Working Papers from HAL
Bibliographic data for series maintained by CCSD ().