Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

The impact of immigration on UK wages

09.03.2007
Immigration to the UK has made a positive contribution to the average wage increase experienced by non-immigrant workers, according to a new report published by UCL’s Department of Economics and Centre for Research and Analysis of Migration (CReAM). The report was commissioned by the Low Pay Commission as part of its ongoing evaluation of the National Minimum Wage.

The research looks at the period from 1997 to 2005 and finds evidence of an overall positive impact of immigration on the wages of native born workers, although the magnitude of the effect is modest. Immigration during these years contributed about one twentieth of the average three percent annual growth in real wages.

Prof. Christian Dustmann of UCL’s Department of Economics said: “Economic theory shows us that immigration can provide a net boost to wages if there is a difference in the skills offered by native and immigrant workers. However, across the whole spectrum of wages it is impossible for everybody to benefit. Some workers will see a gain, others a loss.”

The report goes on to say that although the arrival of economic migrants has benefited workers in the middle and upper part of the wage distribution, immigration has placed downward pressure on the wages of workers in receipt of lower levels of pay. Over the period considered, wages at all points of the wage distribution increased in real terms, but wages in the lowest quarter would have increased quicker and wages further up the distribution would have risen more slowly if it were not for the effect of immigration.

These estimated wage effects mirror evidence on the location of recent immigrants in the non-immigrant wage distribution. “Our study showed that during these years immigrants tended to be more concentrated than natives below the first quartile of the native wage distribution, in exactly the same place that we found evidence of wages being held back,” said Professor Dustmann. “They were less concentrated from there upwards, which is where we found wage benefits.”

The research also shows that, although, on average, immigrants to the UK have higher levels of education than their UK counterparts, these recent immigrants ‘downgrade’ considerably, working in jobs that are less skilled and pay lower wages than would a typical native worker of similar level of education.

The research was conducted by Prof. Christian Dustmann, Prof. Ian Preston and Tommaso Frattini, from UCL’s Centre for Research and Analysis of Migration (CReAM).

For their analysis, researchers used the British Labour Force Survey, the Annual Survey of Hours and Earnings (ASHE) and the UK Census. Findings are consistent across datasets.

These findings are specific to the particular pattern of immigration over the period considered and should not be regarded as a reliable guide to the effects of immigration inflows over different periods.

David Weston | alfa
Further information:
http://www.ucl.ac.uk/media/library/immigration

More articles from Business and Finance:

nachricht Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)

nachricht Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Fizzy soda water could be key to clean manufacture of flat wonder material: Graphene

Whether you call it effervescent, fizzy, or sparkling, carbonated water is making a comeback as a beverage. Aside from quenching thirst, researchers at the University of Illinois at Urbana-Champaign have discovered a new use for these "bubbly" concoctions that will have major impact on the manufacturer of the world's thinnest, flattest, and one most useful materials -- graphene.

As graphene's popularity grows as an advanced "wonder" material, the speed and quality at which it can be manufactured will be paramount. With that in mind,...

Im Focus: Exotic quantum states made from light: Physicists create optical “wells” for a super-photon

Physicists at the University of Bonn have managed to create optical hollows and more complex patterns into which the light of a Bose-Einstein condensate flows. The creation of such highly low-loss structures for light is a prerequisite for complex light circuits, such as for quantum information processing for a new generation of computers. The researchers are now presenting their results in the journal Nature Photonics.

Light particles (photons) occur as tiny, indivisible portions. Many thousands of these light portions can be merged to form a single super-photon if they are...

Im Focus: Circular RNA linked to brain function

For the first time, scientists have shown that circular RNA is linked to brain function. When a RNA molecule called Cdr1as was deleted from the genome of mice, the animals had problems filtering out unnecessary information – like patients suffering from neuropsychiatric disorders.

While hundreds of circular RNAs (circRNAs) are abundant in mammalian brains, one big question has remained unanswered: What are they actually good for? In the...

Im Focus: RAVAN CubeSat measures Earth's outgoing energy

An experimental small satellite has successfully collected and delivered data on a key measurement for predicting changes in Earth's climate.

The Radiometer Assessment using Vertically Aligned Nanotubes (RAVAN) CubeSat was launched into low-Earth orbit on Nov. 11, 2016, in order to test new...

Im Focus: Scientists shine new light on the “other high temperature superconductor”

A study led by scientists of the Max Planck Institute for the Structure and Dynamics of Matter (MPSD) at the Center for Free-Electron Laser Science in Hamburg presents evidence of the coexistence of superconductivity and “charge-density-waves” in compounds of the poorly-studied family of bismuthates. This observation opens up new perspectives for a deeper understanding of the phenomenon of high-temperature superconductivity, a topic which is at the core of condensed matter research since more than 30 years. The paper by Nicoletti et al has been published in the PNAS.

Since the beginning of the 20th century, superconductivity had been observed in some metals at temperatures only a few degrees above the absolute zero (minus...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Call for Papers – ICNFT 2018, 5th International Conference on New Forming Technology

16.08.2017 | Event News

Sustainability is the business model of tomorrow

04.08.2017 | Event News

Clash of Realities 2017: Registration now open. International Conference at TH Köln

26.07.2017 | Event News

 
Latest News

What the world's tiniest 'monster truck' reveals

23.08.2017 | Life Sciences

Treating arthritis with algae

23.08.2017 | Life Sciences

Witnessing turbulent motion in the atmosphere of a distant star

23.08.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>