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Immigration and the UK Labour Market: The latest evidence from economic research

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  • Jonathan Wadsworth

Abstract

During periods of strong economic growth, migration is and has always been important for filling gaps in the labour market. On balance, the evidence for the UK labour market suggests that fears about the consequences of rising immigration have been exaggerated. It is hard to find evidence of much displacement of UK workers or lower wages, on average. Immigrants, especially in recent years, tend to be younger and better educated than the UK-born and are less likely to be unemployed. They certainly do not receive preferential access to housing. But there have been some effects. The less skilled may have experienced greater downward pressure on wages and greater competition for jobs than others, but these effects still appear to have been modest. Unfortunately we do not know much about whether the effects of immigration are different in downturns. We also need to understand more about how capital and sectoral shifts in demand respond to immigration over the longer run. Future migration trends will, as ever, depend on relative economic performance and opportunity. But we still need to know more about the effects of rising immigration beyond the labour market in areas like prices, housing, health, crime and welfare.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Policy Analysis Papers with number 014.

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Date of creation: Jun 2012
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Handle: RePEc:cep:ceppap:014

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEPPA

Related research

Keywords: immigration; government policy; education; labour market; jobs; wages;

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  1. Christian Dustmann & Tommaso Frattini & Caroline Halls, 2010. "Assessing the Fiscal Costs and Benefits of A8 Migration to the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 31(1), pages 1-41, 03.
  2. Tommaso Frattini, 2012. "Immigrazione," Rivista di Politica Economica, SIPI Spa, issue 3, pages 363-407, July-Sept.
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