We thank the British Home Office for financial support. Dustmann and Preston gratefully acknowledge the support of the Economic and Social Research Council (grant RES-000-23-0332). Fabbri also acknowledges financial support from the Munich Graduate School of Economics/Deutsche Forschungsgemeinschaft. We are grateful to Yasmin Dolatabadi for excellent research assistance. Important comments and advice were received from David Card, Wendy Carlin, Hidehiko Ichimura, Joanne Lindley, Costas Meghir, Jonathan Wadsworth, Carole Willis, and Frank Windmeijer. We thank the UK Data Archive at Essex for providing the data. All errors remain our own.
The Impact of Immigration on the British Labour Market†
Article first published online: 21 NOV 2005
The Economic Journal
Volume 115, Issue 507, pages F324–F341, November 2005
How to Cite
Dustmann, C., Fabbri, F. and Preston, I. (2005), The Impact of Immigration on the British Labour Market. The Economic Journal, 115: F324–F341. doi: 10.1111/j.1468-0297.2005.01038.x
- Issue published online: 21 NOV 2005
- Article first published online: 21 NOV 2005
Using data from the British Labour Force Survey this article provides an empirical investigation of the way immigration affects labour market outcomes of native born workers in Britain, set beside a theoretical discussion of the underlying economic mechanisms. We discuss problems arising in empirical estimation, and how to address them. We show that the overall skill distribution of immigrants is remarkably similar to that of the native born workforce. We find no strong evidence that immigration has overall effects on aggregate employment, participation, unemployment and wages but some differences according to education.