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New Labour? The Effects of Migration from Central and Eastern Europe on Unemployment and Wages in the UK

Author

Listed:
  • Lemos Sara

    (Department of Economics, University of Leicester, University Road, Leicester LE1 7RH, England)

  • Portes Jonathan

    (National Institute of Economic and Social Research, 2 Dean Trench Street, Smith Square London SW1P 3HE, UK)

Abstract

The UK was one of only three countries that granted free movement of workers to accession nationals following the enlargement of the European Union in May 2004. The resulting migration inflow, which was substantially larger and faster than anticipated, arguably corresponds more closely to an exogenous supply shock than most migration shocks studied in the literature. We evaluate the impact of this migration inflow – one of the largest in British history – on the UK labour market. We use new monthly micro-level data and an empirical approach that investigates which of several particular labour markets in the UK – with varying degrees of natives’ mobility and migrants’ self-selection – may have been affected. We found little evidence that the inflow of accession migrants contributed to a fall in wages or a rise in claimant unemployment in the UK between 2004 and 2006.

Suggested Citation

  • Lemos Sara & Portes Jonathan, 2014. "New Labour? The Effects of Migration from Central and Eastern Europe on Unemployment and Wages in the UK," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(1), pages 299-338, January.
    • Handle: RePEc:bpj:bejeap:v:14:y:2014:i:1:p:299-338:n:11
    DOI: 10.1515/bejeap-2013-0065
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    Citations

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    Cited by:

    1. Hannah Illing, 2023. "Crossing Borders: Labor Market Effects of European Integration," ECONtribute Discussion Papers Series 221, University of Bonn and University of Cologne, Germany.
    2. Illing, Hannah, 2023. "Crossing Borders: Labor Market Effects of European Integration," IZA Discussion Papers 15930, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    migration; employment; wages; Central and Eastern Europe; UK; J22;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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