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Overview of evidence on economic impacts of EU immigration

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  • Johnny Runge

Abstract

EU migrants have no or little impact on overall employment and wages. There is some evidence of negative impacts on low-skilled and low-paid, but these impacts are very small. EU migrants have a positive impact on public finances, but it is unclear whether this ‘migration windfall' has been used to sufficiently offset pressures to public services caused by the population increase resulting from migration. Despite the increase in population, there is no evidence that EU migration has had negative impacts on public services, but there is a lack of research in this area. There is some evidence that EU migration leads to higher labour and firm productivity. The impact on house prices and access to social housing depends critically on adjustments to supply. In recent decades, policies on housing construction have not met excess demand. Overall, the evidence shows no or little labour market impacts, and positive impacts on public finances, growth and productivity. But economic impacts of migration cannot be seen in isolation from government policies, particularly on public services and housing.

Suggested Citation

  • Johnny Runge, 2019. "Overview of evidence on economic impacts of EU immigration," National Institute of Economic and Social Research (NIESR) Topical Briefings, National Institute of Economic and Social Research, issue 1, August.
  • Handle: RePEc:nsr:niesrt:i:1:m:august:y:2019
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    File URL: https://niesr.ac.uk/wp-content/uploads/2021/10/NIESR-Briefing-Economic-Impacts-of-EU-Immigration-4.pdf?ver=Z9AcXa6mENyPjaH00k3x
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