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Immigration, factor endowments and the productive structure of Spanish regions

Guadalupe Serrano (), Francisco Requena Silvente and Joan Martín-Montaner
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Guadalupe Serrano: Dept. of Economic Analysis. Faculty of Economics. University of Valencia

No 1003, Working Papers from Department of Applied Economics II, Universidad de Valencia

Abstract: Participation of immigrants in Spanish labour market increased from less than 3 percent in 1996 to more than 13 percent in 2005. We use the factor proportion model of production to examine the impact of such a large labour supply shock on the industrial structure of Spanish regions. The results confirm that, first, labour endowment differences across regions help to explain the pattern of industry specialisation across regions. Second, immigrants and natives act as complementary factors in most industries. Third, the importance of immigration is relatively small compared to production technique changes and idiosyncratic industry changes in explaining the overall changes in industrial structure from 1996 to 2005.

Keywords: Rybczynski Effect; immigration; production specialisation; technological change (search for similar items in EconPapers)
JEL-codes: F22 R11 R13 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2010-11
New Economics Papers: this item is included in nep-eur, nep-geo and nep-mig
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