Accounting for Big City Growth in Low Paid Occupations: Immigration and/or Service Class Consumption
AbstractGrowth of 'global cities' in the 1980s was supposed to have involved an occupational polarisation, including growth of low paid service jobs. Though held to be untrue for European cities, at the time, some such growth did emerge in London a decade later than first reported for New York. The question is whether there was simply a delay before London conformed to the global city model, or whether another distinct cause was at work in both cases. This paper proposes that the critical factor in both cases was actually an upsurge of immigration from poor countries providing an elastic supply of cheap labour. This hypothesis and its counterpart based on growth in elite jobs are tested econometrically for the British case with regional data spanning 1975-2008, finding some support for both effects, but with immigration from poor countries as the crucial influence in late 1990s London.
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Bibliographic InfoPaper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0106.
Date of creation: Apr 2012
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Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp
regional labour markets; wages; employment; international migration; consumer demand;
Find related papers by JEL classification:
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-15 (All new papers)
- NEP-EUR-2012-05-15 (Microeconomic European Issues)
- NEP-GEO-2012-05-15 (Economic Geography)
- NEP-LAB-2012-05-15 (Labour Economics)
- NEP-MIG-2012-05-15 (Economics of Human Migration)
- NEP-URE-2012-05-15 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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The Review of Economics and Statistics,
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- Tommaso Frattini, 2012. "Immigrazione," Rivista di Politica Economica, SIPI Spa, issue 3, pages 363-407, July-Sept.
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CReAM Discussion Paper Series
0811, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Julie Fry, 2014. "Migration and Macroeconomic Performance in New Zealand: Theory and Evidence," Treasury Working Paper Series 14/10, New Zealand Treasury.
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