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The impact of immigration on the structure of male wages: theory and evidence from Britain

Manacorda, Marco and Manning, Alan and Wadsworth, Jonathan (2006) The impact of immigration on the structure of male wages: theory and evidence from Britain. CEPDP, 754. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0753020602

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Identification Number: 754

Abstract

Immigration to the UK has risen in the past 10 years and has had a measurable effect on the supply of different types of labour. But, existing studies of the impact of immigration on the wages of native-born workers in the UK (e.g. Dustmann, Fabbri and Preston, 2005) 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.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk
Additional Information: © 2006 the authors
Subjects: H Social Sciences > HD Industries. Land use. Labor
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Departments > Economics
Date Deposited: 21 Jul 2008 16:38
Last Modified: 10 Dec 2013 09:33
URI: http://eprints.lse.ac.uk/id/eprint/19797

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