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The Local Labour Market Effects of Immigration in the UK

Author

Listed:
  • Dustmann, Christian

    (University College London)

  • Francesca Fabbri
  • Ian Preston

Abstract

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.

Suggested Citation

  • Dustmann, Christian & Francesca Fabbri & Ian Preston, 2003. "The Local Labour Market Effects of Immigration in the UK," Royal Economic Society Annual Conference 2003 70, Royal Economic Society.
    • Handle: RePEc:ecj:ac2003:70
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    Citations

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    Cited by:

    1. Karin Mayr, 2003. "Immigration and Majority Voting on Income Redistriubtion-Is there a Case for Opposition from Natives?," Economics working papers 2003-08, Department of Economics, Johannes Kepler University Linz, Austria.
    2. Anna Rosso, 2016. "Skill Transferability and Immigrant-Native Wage Gaps," Development Working Papers 405, Centro Studi Luca d'Agliano, University of Milano, revised 21 Oct 2016.
    3. Giuseppe Pernagallo & Benedetto Torrisi, 2023. "Human capital mobility patterns in the European Union and the financial crisis," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(2), pages 1791-1820, April.
    4. Thomas Horvath, 2012. "Immigration and the Distribution of Wages in Austria," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 3, pages 55-69, March.
    5. Timothy Hatton, 2005. "Explaining trends in UK immigration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(4), pages 719-740, November.
    6. Timothy J. Hatton & Massimiliano Tani, 2005. "Immigration and Inter-Regional Mobility in the UK, 1982-2000," Economic Journal, Royal Economic Society, vol. 115(507), pages 342-358, November.
    7. Hainmueller, Jens & Hiscox, Michael J., 2007. "Educated Preferences: Explaining Attitudes Toward Immigration in Europe," International Organization, Cambridge University Press, vol. 61(2), pages 399-442, April.
    8. Nathan, Max, 2011. "The Long Term Impacts of Migration in British Cities: Diversity, Wages, Employment and Prices," MPRA Paper 29465, University Library of Munich, Germany.
    9. Allan Williams & Vladimir Balaz, 2009. "Low-Cost Carriers, Economies of Flows and Regional Externalities," Regional Studies, Taylor & Francis Journals, vol. 43(5), pages 677-691.
    10. Stefano STAFFOLANI & Enzo VALENTINI, 2009. "Does Immigration Raise Blue and White Collar Wages of Natives?," Working Papers 330, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    11. Luisa Gagliardi, 2015. "Does skilled migration foster innovative performance? Evidence from British local areas," Papers in Regional Science, Wiley Blackwell, vol. 94(4), pages 773-794, November.
    12. William Betz & Nicole Simpson, 2013. "The effects of international migration on the well-being of native populations in Europe," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-21, December.
    13. David Coleman & Robert Rowthorn, 2004. "The Economic Effects of Immigration into the United Kingdom," Population and Development Review, The Population Council, Inc., vol. 30(4), pages 579-624, December.
    14. Bernard Fingleton & Daniel Olner & Gwilym Pryce, 2020. "Estimating the local employment impacts of immigration: A dynamic spatial panel model," Urban Studies, Urban Studies Journal Limited, vol. 57(13), pages 2646-2662, October.
    15. Kwon, Chul-Woo & Chun, Bong Geul, 2011. "Relationship regarding the demand for labor between domestic temporary and foreign workers: Korean case," Japan and the World Economy, Elsevier, vol. 23(4), pages 240-245.
    16. Stefano Staffolani & Enzo Valentini, 2010. "Does Immigration Raise Blue and White Collar Wages of Natives? The Case of Italy," LABOUR, CEIS, vol. 24(3), pages 295-310, September.
    17. Steinhardt, Max Friedrich, 2006. "Arbeitsmarkt und Migration: Eine empirische Analyse der Lohn- und Beschäftigungseffekte der Zuwanderung für Deutschland," HWWI Research Papers 3-4, Hamburg Institute of International Economics (HWWI).
    18. Chris F. Wright & Colm McLaughlin, 2024. "Short‐term fix or remedy for market failure? Immigration policy as a distinct source of skills," Industrial Relations Journal, Wiley Blackwell, vol. 55(1), pages 3-19, January.

    More about this item

    Keywords

    immigration; labour market;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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