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The Impact of Immigration on the UK Labour Market

Author

Listed:
  • 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.

Suggested Citation

  • Christian Dustmann & Francesca Fabbri & Ian Preston, 2005. "The Impact of Immigration on the UK Labour Market," CReAM Discussion Paper Series 0501, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  • Handle: RePEc:crm:wpaper:0501
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Rudolf Winter-Ebmer & Josef Zweimüller, 1999. "Do immigrants displace young native workers: The Austrian experience," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(2), pages 327-340.
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    5. 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.
    6. 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.
    7. 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.
    8. George J. Borjas, 1986. "Immigrants, Minorities, and Labor Market Competition," NBER Working Papers 2028, National Bureau of Economic Research, Inc.
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    10. 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.
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    Citations

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    Cited by:

    1. Kamil DYBCZAK & Kamil GALUSCAK, 2013. "Changes in the Czech Wage Structure: Does Immigration Matter?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 63(2), pages 108-128, May.
    2. David McKenzie & Pilar Garcia Martinez & L. Alan Winters, 2008. "Who is coming from Vanuatu to New Zealand under the new Recognised Seasonal Employer (RSE) Program?," CReAM Discussion Paper Series 0806, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    3. Kondylis, Florence, 2007. "Conflict-induced displacement and labour market outcomes: evidence from post-war Bosnia and Herzegovina," LSE Research Online Documents on Economics 19670, London School of Economics and Political Science, LSE Library.
    4. Kahanec, Martin & Zimmermann, Klaus F, 2008. "Migration, the Quality of the Labour Force and Economic Inequality," CEPR Discussion Papers 6899, C.E.P.R. Discussion Papers.
    5. Asadul Islam, 2009. "The substitutability of labor between immigrants and natives in the Canadian labor market: circa 1995," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(1), pages 199-217, January.
    6. Kondylis, Florence, 2010. "Conflict displacement and labor market outcomes in post-war Bosnia and Herzegovina," Journal of Development Economics, Elsevier, vol. 93(2), pages 235-248, November.
    7. Manacorda, Marco & Manning, Alan & Wadsworth, Jonathan, 2006. "The impact of immigration on the structure of male wages: theory and evidence from Britain," LSE Research Online Documents on Economics 19797, London School of Economics and Political Science, LSE Library.
    8. Longhi, Simonetta & Nijkamp, Peter & Poot, Jacques, 2006. "The impact of immigration on the employment of natives in regional labour markets: a meta-analysis," ISER Working Paper Series 2006-10, Institute for Social and Economic Research.
    9. Jonathan Wadsworth, 2005. "Immigration: The Evidence from Economic Research," CEP Election Analysis Papers 005, Centre for Economic Performance, LSE.
    10. Stuart Campbell, 2013. "Over-education among A8 migrants in the UK," DoQSS Working Papers 13-09, Department of Quantitative Social Science - UCL Institute of Education, University College London.
    11. Yana Pryymachenko & Klas Fregert & Fredrik N. G. Andersson, 2013. "The effect of emigration on unemployment: Evidence from the Central and Eastern European EU member states," Economics Bulletin, AccessEcon, vol. 33(4), pages 2692-2697.
    12. Paolo Lucchino & Dr Chiara Rosazza Bondibene & Jonathan Portes, 2012. "Examining the relationship between immigration and unemployment using National Insurance Number registration data," National Institute of Economic and Social Research (NIESR) Discussion Papers 386, National Institute of Economic and Social Research.
    13. John Schmitt & Jonathan Wadsworth, 2006. "Changing Patterns in the Relative Economic Performance of Immigrants to Great Britain and the U.S., 1980-2000," CEPR Reports and Issue Briefs 2006-07, Center for Economic and Policy Research (CEPR).
    14. Kahanec, Martin & Zimmermann, Klaus F., 2008. "International Migration, Ethnicity and Economic Inequality," IZA Discussion Papers 3450, Institute for the Study of Labor (IZA).
    15. Bonin, Holger, 2017. "The Potential Economic Benefits of Education of Migrants in the EU," IZA Research Reports 75, Institute for the Study of Labor (IZA).
    16. Gheasi, Masood & Nijkamp, Peter & Rietveld, Piet, 2015. "Wage Gaps between Native and Migrant Graduates of Higher Education Institutions in the Netherlands," IZA Discussion Papers 9353, Institute for the Study of Labor (IZA).
    17. Florence Kondylis, 2008. "Conflict displacement and labor market outcomes in post-war Bosnia & Herzegovina," HiCN Working Papers 45, Households in Conflict Network.
    18. Pokrovsky, D. & Shapoval, A., 2015. "Distribution of Entrepreneurial Skills and Migration: Employment Structure, Income Inequality, and Welfare," Journal of the New Economic Association, New Economic Association, vol. 26(2), pages 36-62.
    19. Albrecht Glitz, 2006. "The Labour Market Impact of Immigration: Quasi-Experimental Evidence," CReAM Discussion Paper Series 0612, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    20. Meng, Xin & Zhang, Dandan, 2010. "Labour Market Impact of Large Scale Internal Migration on Chinese Urban 'Native' Workers," IZA Discussion Papers 5288, Institute for the Study of Labor (IZA).

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    Keywords

    Migration; Survey; Attitudes;

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