This article examines the occupational mobility of immigrants between their countries of origin and Spain on the basis of one of the few surveys available internationally with longitudinal information on immigrant employment in home and host countries. The evidence shows that the occupational status of immigrants in the Spanish labour market is, in general, substantially worse than in their countries of origin. The severe loss of occupational status experienced by immigrants is explained by the combined effect of the intense initial downgrading they experience when entering the Spanish labour market and their very slow occupational progress during their stay in Spain. These findings are more in line with the segmented assimilation theory, which suggests a limited or blocked immigrant occupational mobility, than with the assimilation theory, which predicts a U-shaped evolution in the occupational status of immigrants between their home and host countries. As a result, the Spanish case contrasts sharply with previous evidence for other advanced countries, which tends to support the assimilation perspective. Finally, the empirical evidence suggests that one of the elements impeding the occupational mobility of immigrants in Spain is the significant size of the secondary segment of the labour market, which restricts immigrants' opportunities mainly to low-status occupations.

This article carries out an empirical examination of the origin of the differences between immigrant and native-born wage structures in the Spanish labour market. Especial attention is given in the analysis to the role played by occupational and workplace segregation of immigrants. Legal immigrants from developing countries exhibit lower mean wages and a more compressed wage structure than native-born workers. By contrast, immigrants from developed countries display higher mean wages and a more dispersed wage structure. The main empirical finding is that the disparities in the wage distributions for the native-born and both groups of immigrants are largely explained by their different observed characteristics, with a particularly important influence in this context of workplace and, particularly, occupational segregation.

h i g h l i g h t sWe examine the origin of wage differences between hospitality and rest of sectors. Small differences in lower part of wage distribution but very relevant in upper part. Differences due only to a composition effect, in contrast with other low-wage sectors. Most qualified workers are penalized: endowments much less rewarded in hospitality. Low levels of wage inequality in hospitality explained by wage-setting mechanisms. Available online xxx JEL codes:The article examines the origin of differences between wages in the hospitality sector and the rest of the private sector in Spain. The evidence obtained for the 2002e2010 period shows that the wage disadvantage of hospitality presents an increasing profile along the wage distribution so that it is particularly relevant for those earning comparatively higher salaries. In contrast with other low-wage sectors, lower wages in hospitality are explained almost entirely by the specific characteristics of its workers and jobs (particularly their lower educational qualifications and their higher presence in low-skilled occupations), and not by the existence of lower rewards to those characteristics. Highly qualified individuals are however an exception since they suffer a wage penalty for working in the sector. Furthermore the analysis shows that pay inequality is substantially lower in the hospitality sector and that it is not due to the relative characteristics of its workers and jobs.