Analysis of wage differences between native and immigrant workers in Spain

This paper analyses the nature of wage differences between native and immigrant workers in Spain. By estimating separated wage equations for the sub samples of both native and non-native workers and applying the Oaxaca-Blinder method, we observe that the relative unexplained (or discriminatory) component of the wage difference has a decreasing behaviour along the most part of the wage distribution, even becoming negative at the end. So, in this paper we detect the existence of a remarkable wage difference against the group of immigrants with the lowest wages which is not explained by the differences in the productive features of both native and non-native workers.