Differences in labour market outcomes between immigrant and UK‐born employees: evidence from linked data

Using data from the Annual Survey of Hours and Earnings linked to the 2011 Census of England and Wales, this paper examines labour market differences between first‐generation immigrants and UK‐born employees. The findings indicate that recent immigrants earn less, work longer hours, are less likely to work part‐time, and are more likely to hold low‐skilled or temporary jobs. Despite the narrowing influence of education and region, these disparities remain largely unexplained. In contrast, long‐term immigrants exhibit outcomes similar to those of UK‐born employees. Heterogeneity analysis further reveals varying gaps across immigrant groups, reflecting potential differences in outside options and cultural norms.