The wage gap between immigrant and native workers in Spain: an analysis using matched employer-employee data

The fact that Spain has witnessed a sharp increase in the number of immigrants over the past decade has generated considerable interest, particularly as regards wages earned by immigrants in host industries. We analyze whether controlling for both observable and unobservable characteristics of employers —in addition to individual variables and the economic context— makes any difference as regards the debate regarding the existence of wage differences between immigrant and native workers in Spain. As we show, doing this considerably reduces (or even eliminates) the inequalities found in previous research, thereby questioning the results attained by previous studies on this issue.