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The Long Term Impacts of Migration in British Cities: Diversity, Wages, Employment and Prices

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  • Max Nathan

Abstract

British cities are becoming more culturally diverse, with migration a main driver. Is this growing diversity good for urban economies? This paper explores, using a new 16-year panel of UK cities. Over time, net migration affects both local labour markets and the wider economy. Average labour market impacts appear neutral. Dynamic effects may be positive on UK-born workers' productivity and wages (via production complementarities for higher skill workers) or negative on employment (if migrants progressively displace lower-skill natives from specific sectors). The results, which survive causality checks, suggest both processes are operating in British cities. Long-term industrial decline and casualisation of entry-level jobs help explain the employment findings.

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Paper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0067.

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Date of creation: Feb 2011
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Handle: RePEc:cep:sercdp:0067

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Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp

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Keywords: cities; migration; cultural diversity; labour markets; productivity; urban economics;

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Productivity vs immigration
    by chris dillow in Stumbling and Mumbling on 2011-04-07 12:58:12
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Cited by:
  1. Dr Max Nathan, 2013. "The Wider Economic Impacts Of High-Skilled Migrants: A Survey Of The Literature," NIESR Discussion Papers 11607, National Institute of Economic and Social Research.
  2. Stephan Brunow & Hanna Brenzel, 2012. "The effect of a culturally diverse labour supply on regional income in the EU," Empirica, Springer, vol. 39(4), pages 461-485, November.
  3. Dirk Dohse & Robert Gold, 2014. "Determining the Impact of Cultural Diversity on Regional Economies in Europe," WWWforEurope Working Papers series 58, WWWforEurope.
  4. Dirk Dohse & Robert Gold, 2013. "Measuring Cultural Diversity at a Regional Level," WWWforEurope Working Papers series 10, WWWforEurope.
  5. Max Nathan, 2011. "The Economics of Super-Diversity: Findings from British Cities, 2001-2006," SERC Discussion Papers 0068, Spatial Economics Research Centre, LSE.
  6. Max Nathan, 2014. "The wider economic impacts of high-skilled migrants: a survey of the literature for receiving countries," IZA Journal of Migration, Springer, vol. 3(1), pages 1-20, December.
  7. Neil Lee & Max Nathan, 2011. "Does cultural diversity help innovation in cities: evidence from London firms," LSE Research Online Documents on Economics 33579, London School of Economics and Political Science, LSE Library.
  8. Rosa Sanchis-Guarner, 2014. "First-Come First-Served: Identifying the Demand Effect of Immigration Inflows on House Prices," SERC Discussion Papers 0160, Spatial Economics Research Centre, LSE.
  9. Luisa Alamá-Sabater & Maite Alguacil & Joan Serafí Bernat-Martí, 2014. "Location determinants of migrant inflows: The Spanish case?," Working Papers 2014/07, Economics Department, Universitat Jaume I, Castellón (Spain).
  10. Ron Boschma & Rikard Eriksson & Urban Lindgren, 2013. "Labour market externalities and regional growth in Sweden: The importance of labour mobility between skill-related industries," Papers in Evolutionary Economic Geography (PEEG) 1318, Utrecht University, Section of Economic Geography, revised Oct 2013.
  11. Thomas Kemeny, 2013. "Immigrant Diversity and Economic Development in Cities: A Critical Review," SERC Discussion Papers 0149, Spatial Economics Research Centre, LSE.
  12. Neil Lee, 2013. "Cultural Diversity, Cities and Innovation: firm Effects or City Effects?," SERC Discussion Papers 0144, Spatial Economics Research Centre, LSE.

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