Abstract: On the basis of a spatial wage-curve equation, this paper analyses the effect of immigration on average wages across Spanish provinces (NUTS-3) over the period 2004?15. To do so, a spatial panel Durbin model is estimated. The results reveal that there exists a small negative effect, which is mainly determined by the presence of spillovers. Moreover, they reveal that the average wage of a particular province depends positively on its productivity level and the share of the manufacturing industry, and negatively on its rate of unemployment and the share of the service sector.
