Measuring the economic impact of immigrant workers exit from Madrid region labor market

Abstract

This paper analyses the economic impact of the loss of employment suffered by the immigrant population in Madrid’s regional economy during the years of the latest economic crisis, specifically during the period 2010-2016. First, it examines the labour characteristics of the immigrant population, a community mainly employed in unstable and low-skilled jobs and overrepresented in economic sectors that are sensitive to fluctuations in the labour market. Financial crisis forced these workers exiting labour market and the present work focuses on the modelling of this phenomenon by means of the construction of a multisectoral model of the supply-side type, also known as Ghosh model. This analytic approach provides estimates of the direct impacts of the immigrant working population leaving the labour market, and of its indirect and induced impacts on the greater economy.