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Migration, Trade and Wages

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Author Info
Alexander Hijzen
Peter Wright

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Abstract

This study adopts a GNP function approach in order to examine the impact of migrant labour on domestic factors of production in the United Kingdom during the period 1975-1996. We also examine the relationship between imports and migrants, which are two different facets of globalisation. We find that an increase in the number of unskilled migrants reduces the wages of unskilled domestic workers. However the quantitative impact of this increase is small. No discernible impact of migration is found for skilled native workers. The results also suggest that unskilled migrant workers and imports are substitutes in production, whilst skilled migrant workers and imports are complements.

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Publisher Info
Paper provided by CEPII research center in its series Working Papers with number 2005-06.

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Date of creation: May 2005
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Handle: RePEc:cii:cepidt:2005-06

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Related research
Keywords: Immigration; international trade; wage inequality; globalization; factor markets; labor market;

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Find related papers by JEL classification:
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
D33 - Microeconomics - - Distribution - - - Factor Income Distribution
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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References listed on IDEAS
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.:
  1. George J. Borjas & Richard B. Freeman & Lawrence F. Katz, 1991. "On the Labor Market Effects of Immigration and Trade," NBER Working Papers 3761, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Ulrich Kohli, 2002. "Migration and foreign trade: Further results," Journal of Population Economics, Springer, vol. 15(2), pages 381-387. [Downloadable!] (restricted)
  3. Dunlevy, James A. & Hutchinson, William K., 1999. "The Impact of Immigration on American Import Trade in the Late Nineteenth and Early Twentieth Centuries," The Journal of Economic History, Cambridge University Press, vol. 59(04), pages 1043-1062, December. [Downloadable!]
  4. Burgess, David F., 1974. "Production theory and the derived demand for imports," Journal of International Economics, Elsevier, vol. 4(2), pages 103-117, May. [Downloadable!] (restricted)
  5. Assaf Razin & Efraim Sadka, 2004. "Welfare Migration: Is the Net Fiscal Burden a Good Measure of Its Economic Impact on the Welfare of the Native Born Population?," NBER Working Papers 10682, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Blackorby, Charles & Russell, R Robert, 1989. "Will the Real Elasticity of Substitution Please Stand Up? (A Comparison of the Allen/Uzawa and Morishima Elasticities)," American Economic Review, American Economic Association, vol. 79(4), pages 882-88, September. [Downloadable!] (restricted)
  7. Berndt, Ernst R & Wood, David O, 1975. "Technology, Prices, and the Derived Demand for Energy," The Review of Economics and Statistics, MIT Press, vol. 57(3), pages 259-68, August. [Downloadable!] (restricted)
  8. Ryan, David L. & Wales, Terence J., 2000. "Imposing local concavity in the translog and generalized Leontief cost functions," Economics Letters, Elsevier, vol. 67(3), pages 253-260, June. [Downloadable!] (restricted)
  9. Dunlevy, James A. & Hutchinson, William K., 2001. "The Pro-Trade Effect of Immigration on American Exports During the Late Nineteenth and Early Twentieth Centuries," IZA Discussion Papers 375, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January. [Downloadable!] (restricted)
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  11. Borjas, George J, 1995. "The Economic Benefits from Immigration," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 3-22, Spring. [Downloadable!] (restricted)
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  12. Berndt, Ernst R & Wood, David O, 1981. "Engineering and Econometric Interpretations of Energy-Capital Complementarity: Reply and Further Results," American Economic Review, American Economic Association, vol. 71(5), pages 1105-10, December. [Downloadable!] (restricted)
  13. Christis G. Tombazos, 2003. "A Production Theory Approach to the Imports and Wage Inequality Nexus," Economic Inquiry, Oxford University Press, vol. 41(1), pages 42-61, January.
  14. Machin, S. & Van Reenen, J., 1997. "Technology and Changes in Skill Structure: Evidence from Seven OECD Countries," Papers 24, Centre for Economic Performance & Institute of Economics.
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  15. Keith Head & John Ries, 1998. "Immigration and Trade Creation: Econometric Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 47-62, February.
Full references

Cited by:
(explanations, 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.)

  1. Houssein Boumellassa & Deniz Unal-Kesenci, 2006. "Base de donnees CHELEM-BAL du CEPII," Working Papers 2006-08, CEPII research center. [Downloadable!]
  2. Agnes Benassy-Quere & Veronique Salins, 2005. "Impact de l'ouverture financiere sur les inegalites internes dans les pays emergents," Working Papers 2005-11, CEPII research center. [Downloadable!]
  3. Hedi Bchir & Sebastien Jean & David Laborde, 2005. "Binding Overhang and Tariff-Cutting Formulas," Working Papers 2005-18, CEPII research center. [Downloadable!]
    Other versions:
  4. Guillaume Gaulier & Francoise Lemoine & Deniz Unal-Kesenci, 2005. "China’s Integration in East Asia: Production Sharing, FDI & High-Tech Trade," Working Papers 2005-09, CEPII research center. [Downloadable!]
  5. Agnès Benassy-Quere & Nicolas Gobalraja & Alain Trannoy, 2005. "Tax Competition and Public Input," Working Papers 2005-08, CEPII research center. [Downloadable!]
    Other versions:
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