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The long term impacts of migration in British cities: diversity, wages, employment and prices

Nathan, Max (2011) The long term impacts of migration in British cities: diversity, wages, employment and prices. SERC Discussion Papers, SERCDP0067. Spatial Economics Research Centre (SERC), London School of Economics and Political Sciences, London, UK.

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Identification Number: SERCDP0067

Abstract

British cities are becoming more culturally diverse, with migration a main driver. Is this growing diversity good for urban economies? This paper explores, using a new 16-year panel of UK cities. Over time, net migration affects both local labour markets and the wider economy. Average labour market impacts appear neutral. Dynamic effects may be positive on UK-born workers’ productivity and wages (via production complementarities for higher skill workers) or negative on employment (if migrants progressively displace lower-skill natives from specific sectors). The results, which survive causality checks, suggest both processes are operating in British cities. Long-term industrial decline and casualisation of entry-level jobs help explain the employment findings.

Item Type: Monograph (Working Paper)
Official URL: http://www.spatialeconomics.ac.uk/SERC/publication...
Additional Information: © 2011 Max Nathan
Subjects: H Social Sciences > HC Economic History and Conditions
J Political Science > JV Colonies and colonization. Emigration and immigration. International migration
JEL classification: O - Economic Development, Technological Change, and Growth > O1 - Economic Development
Sets: Research centres and groups > Spatial Economics Research Centre
Collections > Economists Online
Date Deposited: 28 Mar 2011 10:35
Last Modified: 19 Jan 2015 10:21
URI: http://eprints.lse.ac.uk/id/eprint/33577

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