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Immigration, Unemployment and Wages: New Causality Evidence from the United Kingdom

Author

Listed:
  • Cigdem Börke Tunali
  • Jan Fidrmuc
  • Nauro F. Campos

Abstract

The vast literature on the effects of immigration on wages and employment is plagued by likely endogeneity and aggregation biases. Ours is among the first papers to address both of these issues by means of causality analysis and by accounting for human capital endowments. Our analysis confirms the previous finding of limited effect of immigration on unemployment and wages in aggregate analysis. We do find, however, evidence of distributional effects when accounting for human capital of non-migrants.

Suggested Citation

  • Cigdem Börke Tunali & Jan Fidrmuc & Nauro F. Campos, 2017. "Immigration, Unemployment and Wages: New Causality Evidence from the United Kingdom," CESifo Working Paper Series 6452, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_6452
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp6452.pdf
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    Keywords

    immigration; unemployment; wages; UK; European Union;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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