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The Impact of Immigration on the UK Labour Market

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  • Christian Dustmann

    ()
    (Department of Economics and Centre for Research and Analysis of Migration (CReAM), University College London)

  • Francesca Fabbri

    ()
    (Department of Economics, University of Munich)

  • Ian Preston

    ()
    (Department of Economics and Centre for Research and Analysis of Migration (CReAM), University College London)

Abstract

This paper provides an empirical investigation of the way immigration affects labour market outcomes of native born workers in the UK, set beside a theoretical discussion of the underlying economic mechanisms. We discuss the problems that may arise in empirical estimations, and suggest ways to address these problems. Our empirical analysis is based on data from the British Labour Force Survey. We show that the overall skill distribution of Britain's immigrant workforce is remarkably similar to that of the native born workforce. We investigate the impact of immigration on employment, participation, unemployment and wages of the resident population. We find no evidence that immigration has overall effects on any of these outcomes at the aggregate level. There is some evidence that effects are different for different educational groups.

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Bibliographic Info

Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 0501.

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Date of creation: Apr 2005
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Handle: RePEc:crm:wpaper:0501

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Related research

Keywords: Migration; Survey; Attitudes;

References

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  1. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
  2. Cohen-Goldner, Sarit & Paserman, M. Daniele, 2011. "The dynamic impact of immigration on natives' labor market outcomes: Evidence from Israel," European Economic Review, Elsevier, vol. 55(8), pages 1027-1045.
  3. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
  4. Rudolf Winter-Ebmer, . "Do Immigrants Displace Young Native Workers: The Austrian Experience," IEW - Working Papers 011, Institute for Empirical Research in Economics - University of Zurich.
  5. Ethan Lewis, 2003. "Local, open economies within the U.S.: how do industries respond to immigration?," Working Papers 04-1, Federal Reserve Bank of Philadelphia.
  6. Gordon H. Hanson & Matthew J. Slaughter, 1999. "The Rybczynski Theorem, Factor-Price Equalization, and Immigration: Evidence from U.S. States," NBER Working Papers 7074, National Bureau of Economic Research, Inc.
  7. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, July.
  8. Peter Kuhn & Ian Wooton, 1991. "Immigration, International Trade, and the Wages of Native Workers," NBER Chapters, in: Immigration, Trade and the Labor Market, pages 285-304 National Bureau of Economic Research, Inc.
  9. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  10. George J. Borjas, 1986. "Immigrants, Minorities, and Labor Market Competition," NBER Working Papers 2028, National Bureau of Economic Research, Inc.
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