New Labour? The Impact of Migration from Central and Eastern European Countries on the UK Labour Market

55 Pages Posted: 19 Oct 2008  

Sara Lemos

University of Leicester; IZA Institute of Labor Economics

Jonathan Portes

Government of the United Kingdom - Department for Work and Pensions (DWP)

Abstract

The UK was one of only three countries that granted free movement of workers to accession nationals following the enlargement of the European Union in May 2004. The resulting large, rapid and concentrated migration inflow can be seen as a natural experiment that arguably corresponds closely to an exogenous supply shock. We evaluate the impact of this migration inflow - one of the largest in British history - on the UK labour market. We use new monthly micro level data and an empirical approach that ascertains which particular labour markets in the UK - with varying degrees of natives' mobility and migrants' self-selection - may have been affected. Our results suggest modest effects throughout the labour market. Despite anecdotal evidence, we found little hard evidence that the inflow of accession migrants contributed to a fall in wages or a rise in claimant unemployment in the UK between 2004 and 2006.

Keywords: migration, employment, wages, Central and Eastern Europe, UK

JEL Classification: J22

Suggested Citation

Lemos, Sara and Portes, Jonathan, New Labour? The Impact of Migration from Central and Eastern European Countries on the UK Labour Market. IZA Discussion Paper No. 3756. Available at SSRN: https://ssrn.com/abstract=1286694 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Sara Lemos (Contact Author)

University of Leicester ( email )

University Road
Leicester LE1 7RH
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Jonathan Portes

Government of the United Kingdom - Department for Work and Pensions (DWP) ( email )

London SW1A 2AA
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
719
rank
31,716
Abstract Views
2,272
PlumX