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 Europe's microtechnology industry is attuned to growth
10.03.2017 | IVAM Fachverband für Mikrotechnik

nachricht Preferential trade agreements enhance global trade at the expense of its resilience
17.02.2017 | International Institute for Applied Systems Analysis (IIASA)

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: Giant Magnetic Fields in the Universe

Astronomers from Bonn and Tautenburg in Thuringia (Germany) used the 100-m radio telescope at Effelsberg to observe several galaxy clusters. At the edges of these large accumulations of dark matter, stellar systems (galaxies), hot gas, and charged particles, they found magnetic fields that are exceptionally ordered over distances of many million light years. This makes them the most extended magnetic fields in the universe known so far.

The results will be published on March 22 in the journal „Astronomy & Astrophysics“.

Galaxy clusters are the largest gravitationally bound structures in the universe. With a typical extent of about 10 million light years, i.e. 100 times the...

Im Focus: Tracing down linear ubiquitination

Researchers at the Goethe University Frankfurt, together with partners from the University of Tübingen in Germany and Queen Mary University as well as Francis Crick Institute from London (UK) have developed a novel technology to decipher the secret ubiquitin code.

Ubiquitin is a small protein that can be linked to other cellular proteins, thereby controlling and modulating their functions. The attachment occurs in many...

Im Focus: Perovskite edges can be tuned for optoelectronic performance

Layered 2D material improves efficiency for solar cells and LEDs

In the eternal search for next generation high-efficiency solar cells and LEDs, scientists at Los Alamos National Laboratory and their partners are creating...

Im Focus: Polymer-coated silicon nanosheets as alternative to graphene: A perfect team for nanoelectronics

Silicon nanosheets are thin, two-dimensional layers with exceptional optoelectronic properties very similar to those of graphene. Albeit, the nanosheets are less stable. Now researchers at the Technical University of Munich (TUM) have, for the first time ever, produced a composite material combining silicon nanosheets and a polymer that is both UV-resistant and easy to process. This brings the scientists a significant step closer to industrial applications like flexible displays and photosensors.

Silicon nanosheets are thin, two-dimensional layers with exceptional optoelectronic properties very similar to those of graphene. Albeit, the nanosheets are...

Im Focus: Researchers Imitate Molecular Crowding in Cells

Enzymes behave differently in a test tube compared with the molecular scrum of a living cell. Chemists from the University of Basel have now been able to simulate these confined natural conditions in artificial vesicles for the first time. As reported in the academic journal Small, the results are offering better insight into the development of nanoreactors and artificial organelles.

Enzymes behave differently in a test tube compared with the molecular scrum of a living cell. Chemists from the University of Basel have now been able to...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

International Land Use Symposium ILUS 2017: Call for Abstracts and Registration open

20.03.2017 | Event News

CONNECT 2017: International congress on connective tissue

14.03.2017 | Event News

ICTM Conference: Turbine Construction between Big Data and Additive Manufacturing

07.03.2017 | Event News

 
Latest News

Pulverizing electronic waste is green, clean -- and cold

22.03.2017 | Materials Sciences

Astronomers hazard a ride in a 'drifting carousel' to understand pulsating stars

22.03.2017 | Physics and Astronomy

New gel-like coating beefs up the performance of lithium-sulfur batteries

22.03.2017 | Materials Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>