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Title: Immigration and the Informal Labor Market
Author: Farré Olalla, Lídia
Bosch, Mariano
Keywords: Emigració i immigració
Economia submergida
Crisis econòmiques
Emigration and immigration
Informal sector (Economics)
Issue Date: 1-Jun-2014
Publisher: Ministerio de Economía y Competitividad
Abstract: This paper investigates the relationship between immigration and the size of the informal or underground economy. Exploiting the variation across Spanish provinces we find that the massive immigration wave between 2000 and 2009 is highly correlated to the share of unregistered employment,a proxy for the size of the underground or informal labor market. We estimate that a 10 percentage points increase in the share of immigrants in a province generates between a 3 and 8 percentage pointsincrease in unregistered employment. We also find that the controversial regularization of illegal aliensconducted in 2005 substantially reduced the number of illegal workers but did not affect the relationshipbetween immigration and informality. In contrast, we do find that this relationship becomes stronger during the economic recession inaugurated in 2008.
Note: Reproducció del document publicat a:
It is part of: Cuadernos Económicos del ICE, 2014, vol. 2014, num. 87, p. 185-204
ISSN: 0210-2633
Appears in Collections:Articles publicats en revistes (Econometria, Estadística i Economia Aplicada)

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