Presentacin fondo claro

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Question of the paper

• Does it exist earnings assimilation of non EU-15
  immigrants in Spain?
• Earnings Assimilation As immigrants spend time
  in the host country, they adapt pre-existing
  skills and acquire new country specific skills
  that yield a payoff, decreasing the differences
  respect to the native population.

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Question of the paper

• The basic framework to study assimilation of
  earnings is based on Chiswick (1978)
• Research has found that the initial differential
  for Mexicans is at least 40 and one year more in
  the host country approximately closes the gap
  with natives 2
• In Spain Amuedo-Dorantes de la Rica (2007) use
  the EES 02 Census data to find that immigrants
  from no EU-15 earn 30 less that spaniards. This
  gap decreases in 15pp the gap during the first
  five years.

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Question of the paper

• Previous regression with a single or repeated
  cross sections incurred in several problems
• Change in the quality of migrants arriving in
  different years
• Selective emigration
• Using longitudinal data we solved both problems
• Lubotsky (2007) Uses Social Security Records
  matched with CPS to obtain slightly slower
  assimilation profile due to the decrease in
  quality of recent immigrants and selective
  outmigration.
• No research in Spain using longitudinal data in
  wages. Fernandez Ortega (2006) uses repeated
  cross sections of Labor Force Survey to study
  assimilation in labor conditions.
• There are other problems that we cannot solve
  with longitudinal data separate the effect of
  time, year of birth and experience.

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Outline

• Empirical Strategy
• Data
• Results
• Change in immigrant cohort of entry and selective
  emigration
• Mechanism underlying assimilation

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Empirical Strategy

• Earnings of nationals
• Earning of immigrants
• What is assimilation?

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Empirical Strategy

• Pooling all together
• Single cross section
• Repeated cross section
• Longitudinal data

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Outline

• Empirical Strategy
• Data
• Results
• Change in immigrant cohort of entry and selective
  emigration
• Mechanism underlying assimilation

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Data

• We use MCVL 2005B
• Social Security records. 4 random sample of all
  individuals who have had an afiliation during
  2005. Earnings are top coded.
• Studies show that aggregate figures from the
  Labor Force Survey (type of contract, duration
  of working day, sector of activity and of self
  employment) are similar to the figures from MCVL.
  
• COMPARACIÓN DE LAS MAGNITUDES ESTADÍSTICAS DEL
  EMPLEO SEGÚN LA ENCUESTA DE POBLACIÓN ACTIVA Y LA
  MUESTRA CONTINUA DE VIDAS LABORALES Beatriz
  Ramos Muñoz (2007).
• Main diferences appear from the importance of
  the informal sector.

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Data

• Description of sample
• We drop paid unemployment spells
• We keep only General Regimen employment spells
• We keep workers who begin their labour career
  after 1979
• We keep 50 of natives and all migrants. Results
  for males 25-55
• Description of variables
• Daily earnings
• The sum of all Social Security contributions in
  one particular month divided by the number of
  days worked during that month. If there is no
  contribution we set a missing value.
• The sum of all Social Security contributions in
  the year divided by the number of days worked
  during that year. If there is no contribution we
  set a missing value.
• Experience
• Nationals All years since the first entry in the
  Social Security System.
• Immigrants All years since the first entry in
  the Social Security System (years since
  migration)potential experience before first
  entry in SS.

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Data

• Organization of the data set One observation is
  a daily earning in a point in time given the
  characteristics of the worker.

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Data
Data

• Organization of the data set One observation is
  a daily earning considering all year information.

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Data

• We cannot perform OLS regressions due to top
  coding we do median regressions (Powell, 1984)
• Reweighting natives observation by two
• To be solved
• Illegal migrants reweighting with LFS according
  to characteristics. ?
• Unobserved experience abroad here
• Lubotsky shows that there are quantitative
  differences depending on the way experience
  abroad is especified.
• Regularizations 1985-86(38.181) 1991(110.100)
  1996(21.300) 2000(163.900) 2001(216.400)
  2005(548.700)

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Outline

• Empirical Strategy
• Data
• Results
• Change in immigrant cohort of entry and selective
  emigration
• Mechanism underlying assimilation

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Results

• Median earnings of natives males, by total
  experience

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Results

• Median earnings of immigrants males, by total
  experience

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Results

• Median earnings of immigrants males, by years
  since migration

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Results

• We estimate a quantile regression in the median

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Results
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Outline

• Empirical Strategy
• Data
• Results
• Change in immigrant cohort of entry and selective
  emigration
• Mechanism underlying assimilation

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Change in immigrant cohort of entry and selective
emigration

• Increasing importance of migrants from
  enlargement

Survey of Residential Variation
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Change in immigrant cohort of entry and selective
emigration

• Selective emigration Process of Padron
  renewals started in 2005 for those entering
  before 2003

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Outline

• Empirical Strategy
• Data
• Results
• Change in immigrant cohort of entry and selective
  emigration
• Mechanism underlying assimilation

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Mechanism underlying assimilation

• Mechanism underlying assimilation
• Human capital acquisition in the host country
• Different labour behaviour than natives (higher
  mobility)
• Interprovincial migration
• Sectoral mobility
• Changes in the company they work
• Changes in the occupancy within the company
• Restrict the analysis to a particular quarter
  2nd quarter
• Each individual is randomly assigned to a
  reference week. We define her labor situation
  during that quarter depending on what she is
  doing during the reference week.
• If the individual has more than one job during
  the reference week we choose among all of them
• the permanent one
• If several are permanent (or all are temporal)
• the longer during the month corresponding to the
  reference week in the quarter
• If several are permanent (all are temporal) and
  have the same lenght during the month
• the one that begins earlier

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Data

• Organization of the data set
• At each point in time we observe the
  characteristics of the worker type of contract,
  days worked in the month of the reference week,
  sector of activity, company, province of working
  place, etc.
• We compute the daily wage as the sum of total
  contributed earnings over total days worked in
  the month of the reference week.
• All the previous information joined with personal
  characteristics gives us a very good
  characterization of the labor history for each
  individual in the sample.

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Mechanism underlying assimilation

• To estimate a probability model to understand
  the mechanism underlying assimilation

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Mechanism underlying assimilation
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Mechanism underlying assimilation
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Mechanism underlying assimilation
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Mechanism underlying assimilation
Something more Mechanism underlying assimilation
??
Skill/Habilities acquired in the host country
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Mechanism underlying assimilation

• Around 2/3 is explained by the higher and
  better migrants mobility

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Conclusions

• The results do show some assimilation over the
  time spent in Spain the first 8 years of
  experience in Spain reduced the wage differential
  by 17 pp.
• Change in immigrant cohort of entry and selective
  emigration
• Higher education level in the recent immigrants
  entry cohorts
• Higher no renewal rates for those nationalities
  better educated
• Mechanisms underlying assimilation higher
  migrants mobility plays a key role in the
  migrants assimilation profile observed.

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