Regularising the situation of the immigrant population does not result in a “call effect”

Joan Monràs, UPF, Barcelona GSE
Javier Vázquez-Grenno and Ferran Elias, UB
Adaptation: Albert F. Arcarons (EUI)

The study on which this article is based investigates the economic and labour impact of the regularisation, in the year 2005, of 600,000 non-EU immigrants who were working in Spain at that time. The results of the study show that both the labour opportunities of the migrants and their territorial mobility, as well as tax revenues, increased with this change of policy, aimed exclusively at workers in an irregular situation. However, this regu-larisation process did not lead to any “call effect”, or significant growth in the arrival of immigrants, nor did it affect workers with different qualifications and salaries in the same way.
Key points
  • 1
       The improvements relating to the right to work in the formal economy that the new regulations represented for workers in an irregular situation did not produce any effect in terms of immigrant workers attracted by the new situation.
  • 2
       As a result of the reform, the labour conditions of immigrants were favoured, along with their opportunities for mobility towards other sectors of the economy.
  • 3
       One of the most significant consequences of the regulatory change was the increase in tax revenues.
  • 4
       The regularisation had a positive effect on the overall economy, but had different impacts on workers depending on their qualifications and skills levels.

One of the most prominent consequences of the mass regularisation of immigrants was increased revenue for the public purse, originating from new taxes derived from the regulatory change itself, particularly - although not solely – from income tax.

Classification

Authors

Joan Monràs , UPF, Barcelona GSE
Javier Vázquez-Grenno and Ferran Elias , UB
Adaptation: Albert F. Arcarons (EUI)

Tags

Subject areas

Related content

Infodata

Digital Economy and Society Index

Spain stands at the head of the countries of the EU-27 in the global computation of digital society indicators (connectivity, Internet use, etc). Portugal, however, is situated at the tail end.

Infodata

Demographic determinants

Population changes can occur due to variations in the population caused by natural changes and migratory movements.

Infodata

Inequality in income distribution

The redistributive effect of social transfers is lower in Spain than in the EU-27.

Infodata

Level of economic development

The GDP in purchasing power standards allows a more exact comparison of the level of economic development between countries.

Report

The divide between retro-capitalism and turbo-capitalism

Globalisation and the rapid technological and digital transformation has resulted in two coexisting economic models: “turbo-capitalism”, which works with international logic, and “retro-capitalism”, which adopts the old logic of protectionist capitalism.

You may also find interesting

Infodata

Percentage of people who view themselves as above their parents or grandparents on the social ladder

Percentage of people who view themselves as above their parents or grandparents on the social ladder

Social Inclusion

Some 29% of Spaniards have a social position above that of their parents, and over 40% believe they have risen above their grandparents on the social ladder.

Infodata

Number of generations necessary so that those born in families with low incomes can reach the average level of income in their society

Number of generations necessary so that those born in families with low incomes can reach the average level of income in their society

Social Inclusion

In Spain, according to this indicator, it takes four generations to improve the incomes of families with precarious finances.

Infodata

Fertility rate

Fertility rate

Social Inclusion

The fertility rate in Spain is 1.23 children per woman, the second lowest rate among European Union countries.