Narrowing the Gap, Yet Apart: Immigrant Wage Assimilation in Spain
First draft coming soon
This paper analyzes the wage assimilation process of immigrants using administrative data from Spain. Using monthly wage panel data on individuals entering the Spanish labor market between 2008 and 2019, the paper examines whether wage disparities relative to native workers diminish over time. The paper also estimates the role played by factors such as gender, country of origin, and hours worked. Immigrants initially earn wages that are approximately 39% lower than those of comparable natives. This gap narrows to under 10%, though wage parity is not fully achieved within our study period. This study is the first to examine gender-specific assimilation dynamics in Spain, thereby contributing to the existing literature on the topic. Our results show that although immigrant women initially face a smaller wage gap than their male counterparts, they converge at a slower pace. Additionally, wage assimilation varies markedly by region of origin: immigrants from South America assimilate faster than those from Africa. These disparities are partially attributable to linguistic proximity and lower cultural distance, which facilitate the acquisition of country-specific human capital. Our findings underscore the importance of accounting for heterogeneity in assimilation patterns. They also suggest that policies targeting host-country human capital, particularly language acquisition and credential recognition, could accelerate wage convergence and labor market integration.
JEL: F22, J61, J31
Keywords: Immigrants, Wage Assimilation, Earnings profiles
(Mis)Perceptions, attitudes, and preferences for immigrant integration: Evidence from a survey experiment (with David Martinez de Lafuente)
Full paper is available here
What drives support for immigrant integration in Spain? Using data from a nationally representative survey, we examine how perceptions of immigration shape support for immigration and their integration into the labor market. We find that the native population tends to overestimate the share of immigrants and underestimate their economic conditions, resulting in lower support for immigrant entry. Similarly, perceiving immigration as a threat in terms of labor, fiscal, or cultural impacts is associated with lower support for predistributive and redistributive policies. We use randomized survey experiments to estimate the causal effects of two types of information treatments. Our results show that qualitative information on the absence of adverse labor market effects of immigration does not increase support for immigrant integration policies. In contrast, quantitative information about immigrants' public service consumption increases support for immigrant integration through redistributive policies. Yet, our results suggest heterogeneity in treatment effects based on prior beliefs, such as concerns about immigration, and social media consumption for political news.
JEL: C90, D83, D91, J15
Keywords: Immigration, Survey experiment, Policy preferences, Biased beliefs, Decision making.
"Too old to work? A field experiment on age discrimination in the Spanish labor market" (with David Martinez de Lafuente)
Full paper is available here
Due to an aging population, policymakers face increasing pressure to enhance the participation of older workers in the labor market. This paper provides causal evidence of discrimination against older workers in the Spanish labor market. We conducted a resume correspondence experiment with over 1,600 job applications for both low- and high-skilled positions, featuring fictitious candidates aged 35 and 49. To understand the nature of discrimination, we analyzed two key phases of the hiring process: resume screening and the likelihood of receiving a job interview. We found that employers are 10\% less likely to open resumes from 49-year-old candidates for lower-skilled positions. Furthermore, 49-year-old applicants are approximately 50% less likely to receive an interview invitation than their 35-year-old counterparts. Our findings highlight the importance of comprehensive policies that address both labor supply and demand for older workers to overcome the demographic challenges in Spain.
JEL: C93, J14, J63, J71
Keywords: Age, Discrimination, Correspondence Experiment, Labor Market, Demographic Challenge.