Manacorda, M.;
Manning, A.;
Wadsworth, J.;
(2006)
The impact of immigration on the structure of male wages: theory and evidence from Britain.
(Discussion Paper Series
08/06).
Centre for Research and Analysis of Migration: London, UK.
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Abstract
Immigration to the UK has risen over time. Existing studies of the impact of immigration on the wages of native-born workers in the UK have failed to find any significant effect. This is something of a puzzle since Card and Lemieux, (2001) have shown that changes in the relative supply of educated natives do seem to have measurable effects on the wage structure. This paper offers a resolution of this puzzle – natives and immigrants are imperfect substitutes, so that an increase in immigration reduces the wages of immigrants relative to natives. We show this using a pooled time series of British cross-sectional micro data of observations on male wages and employment from the mid-1970s to the mid-2000s. This lack of substitution also means that there is little discernable effect of increased immigration on the wages of native-born workers, but that the only sizeable effect of increased immigration is on the wages of those immigrants who are already here.
| Type: | Working / discussion paper |
|---|---|
| Title: | The impact of immigration on the structure of male wages: theory and evidence from Britain |
| Open access status: | An open access version is available from UCL Discovery |
| Publisher version: | http://www.econ.ucl.ac.uk/cream/publicationsdiscus... |
| Language: | English |
| Keywords: | JEL Classification: J6. Wages, wage inequality, immigration |
| URI: | https://discovery.ucl.ac.uk/id/eprint/14295 |
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