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Social Indicators Research

Erschienen in:

01.01.2015

Job Loss Among Immigrant and Native Workers: Evidence from Spain’s Economic Downturn

verfasst von: Elisabet Motellón, Enrique López-Bazo

Erschienen in: Social Indicators Research | Ausgabe 2/2015

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Abstract

The profound crisis that has affected the Spanish economy since mid-2008 has been characterized by significant job losses and a marked rise in the country’s unemployment rate. However, unemployment has had a differential impact on different population groups. Compared to natives, immigrant workers have experienced higher rates of job loss. Against this backdrop, this paper examines the differences between immigrants and natives (distinguished by gender) in terms of their probability of suffering job loss in the downturn of late 2008 and 2009. Our results indicate that the higher rate of job loss among female immigrant workers can be fully explained by their lower endowment of human capital. By contrast, human capital endowment and over-representation in certain occupations, sectors and regions in which the crisis had greatest impact do not appear to be the only reasons for the penalty suffered by immigrant males in terms of their chances of losing their job in the downturn.

Vorheriger Artikel The Economic Crisis and its Effects on the Quality of Life in the European Union

Nächster Artikel Does Competition from China Raise the Probability of Becoming Unemployed? An Analysis Using Spanish Workers’ Micro-Data

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A general description of transitions in the Spanish labour market in the period immediately prior to the current crisis is provided in Silva and Vázquez-Grenno (2013).

See Pérez-Infante (2006) for further details of the limitations of the LFS with respect to the immigrant population.

As is usual in such studies, the sample was restricted to individuals older than 19 and younger than 50 years of age so as to homogenize the groups, given that the immigrant population outside these age limits was quite limited in the period studied.

Given their specific characteristics, and to ensure consistency, these occupations were excluded from the analysis.

An alternative would have been to use the continuous LFS. However, this database has two major drawbacks for the type of analysis we seek to conduct here: first, it does not identify immigrants from developing countries, distinguishing merely between the native and foreign-born; and, second, the sample is much smaller, the number of immigrants included in each quarter being quite limited, and so it suffers from problems of statistical significance.

Our study seeks to determine whether, when laying off workers, employers opt to eliminate jobs occupied by immigrants first. For this reason, the self-employed and voluntary layoffs were not included in the category of workers that had lost their jobs.

Individuals who changed jobs during a quarter are not classified as job losers, given that we are interested in the transition from employment to unemployment.

For reasons of space, we include results only for the first and third quarters of 2008 and 2009. All other results are available upon request. The same applies to the tables in the sections that follow.

For the sake of convenience when interpreting the results, the model is specified for the probability of job loss. Symmetrical results are obtained when the likelihood of staying in employment is the event being analysed.

See for instance, Cameron and Trivedi (2005). We used the heckprob command in Stata to obtain the estimates.

Unfortunately, to the best of our knowledge, it is not possible to check compliance with these assumptions from an empirical point of view. In any case, it should be stressed that similar results were obtained when the identification was based exclusively on the non-linearity of the functional form, that is to say, when all the variables in Z were also included in X.

For reasons of space, we do not present the results for the coefficients of the regions (but they are available upon request). On the other hand, similar results were obtained when dummies for the levels of educational attainment were included instead of the number of years of schooling.

However, note that the omission of relevant characteristics for the probability of job loss in the empirical model would cause the second term to differ from zero, even in the absence of discrimination. Consequently, as is usual in exercises of this type, the results are contingent on the proper specification of the empirical model and, in any case, the interpretation of this component should include the effect of differences in the unobserved characteristics.

It is worth mentioning that, although the correlation between the error terms of the probability of being employed and of being laid off is statistically significant in most cases, the conclusions derived from the decomposition are similar when the coefficients used are those obtained from the estimation of a univariate probit for the probability of job loss.

We thank an anonymous referee for suggesting this extension of the analysis.

The full set of results for the first and third quarters of 2012 are not included here for reasons of space, but are available from the authors upon request.

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Titel: Job Loss Among Immigrant and Native Workers: Evidence from Spain’s Economic Downturn
verfasst von: Elisabet Motellón
Enrique López-Bazo
Publikationsdatum: 01.01.2015
Verlag: Springer Netherlands
Erschienen in: Social Indicators Research / Ausgabe 2/2015
Print ISSN: 0303-8300
Elektronische ISSN: 1573-0921
DOI: https://doi.org/10.1007/s11205-014-0596-8

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