The Effects of the Crisis in the Employment of Foreigners. How Important are the Education and the Time Spent in the Labour Market?

Abstract

This article explores the impact that the current financial crisis is having on the employment rate of immigrants. To do so, I conduct an empirical analysis using the Spanish Labour Force Survey (2000-2010). As expected, the results indicate that the recession affects foreigners more than Spaniards, but only when it concerns men. The employment rate of highly educated Spanish employees shows a steady decline in comparison to the fall in employment rate of foreigners with a same educational level. Interestingly, the results show that in the more recent years —more strongly shaped by the economic decline—, highly educated immigrants benefit more from their educational level than they did during the economic expansion. Finally, there is no evidence of a better protection against unemployment of time of residence. According to the results, time in the labour market only impacts that prospect of natives.