In Figure 7 the differences in the returns to observables characteristics are shown.
Large differences in their intercepts are observed for the three sectors. This can be interpreted as the difference in the average performance of the two groups that is not related to any of the characteristics included in the regression. This means that there is a large part of the gap that is impossible to explain using the explanatory variables. Yet, it seems clear that also within sector what mainly explain gap are the different returns to human capital.
6. Conclusions and final thoughts
The results presented in this study reveal that immigrant workers are specialized in risky jobs in Spain. Although a large part of the gap in work-related risk exposure can be explained by differences in immigrants‘/natives‘ personal characteristics, differences in the
returns to those observable characteristics are fundamental. This is especially evident for
their human capital. Education returns for immigrants are much lower than for natives. If education returns for immigrants were the same for natives, immigrants would be employed in jobs less exposed to risks. This means that immigrant workers‘ specialization
in risky jobs it‘s not just a consequence of differences in their human capital, but rather a
manifestation of differences in the way labor market valuates it.