The Local Labour Market Effects of Immigration in the UK
This paper provides an empirical analysis of the employment effects of immigration using UK data. We show that on a theoretical level, the effects of immigration on labour market outcomes depend on assumptions regarding the number of goods produced in the economy, and whether these goods are tradable or not. We then discuss the problems that may arise in empirical estimations, and suggests ways to address these problems. Our empirical analysis is based on data from the Labour Force Survey. There is some evidence that immigration affects employment prospects negatively; however, estimated effects are not significantly different from zero.
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