The Phillips curve has flattened in Spain over 1995-2006: unemployment has fallen by 15 percentage points, with roughly … constant inflation. This change has been more pronounced than elsewhere. We argue that this stems from the immigration boom in … Spain over this period. We show that the New Keynesian Phillips curve is shifted by immigration if natives’ and immigrants …

This paper analyzes the strikingly different response of unemployment to the Great Recession in France and Spain. Their … labor market institutions are similar and their unemployment rates just before the crisis were both around 8%. Yet, in … France, unemployment rate has increased by 2 percentage points, whereas in Spain it has shot up to 19% by the end of 2009. We …