Assimilation of Migrants into the British Labour Market
This paper discusses the extent to which migrants to Britain have been assimilated into the workforce. Migration into Britain has increased over the last 25 years, with a big increase in inflows in recent years. The paper shows that when a migrant worker first arrives they experience a pay gap with native born counterparts of over 30% for men and 15% for women. This pay penalty declines with years spent in Britain. For migrant men it takes 20 years to eradicate this difference. For migrant women just 4-6 years. Different nationalities experience different rates of assimilation, with Europeans catching up the fastest but Asian men showing little signs of catching up at all. More recent entry cohorts of migrants have fared better but this is largely because they enter with a smaller pay penalty rather than experience faster wage growth.
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References listed on IDEAS
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- Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760 Elsevier.
- Bell, Brian D, 1997. "The Performance of Immigrants in the United Kingdom: Evidence from the GHS," Economic Journal, Royal Economic Society, vol. 107(441), pages 333-344, March.
- Borjas, George J, 1995.
"Assimilation and Changes in Cohort Quality Revisited: What Happened to Immigrant Earnings in the 1980s?,"
Journal of Labor Economics,
University of Chicago Press, vol. 13(2), pages 201-245, April.
- George J. Borjas, 1994. "Assimilation and Changes in Cohort Quality Revisited: What Happened to Immigrant Earnings in the 1980s?," NBER Working Papers 4866, National Bureau of Economic Research, Inc.