Immigration, Unemployment and Wages: New Causality Evidence from the United Kingdom

28 Pages Posted: 1 Jun 2017

See all articles by Cigdem Börke Tunali

Cigdem Börke Tunali

Istanbul University

Jan Fidrmuc

Brunel University - Department of Economics and Finance; L.E.M., Université de Lille; CESifo (Center for Economic Studies and Ifo Institute); Global Labor Organization (GLO); Institute for Strategy and Analysis, Government Office of the Slovak Republic

Nauro F. Campos

University College London; University of Michigan at Ann Arbor - The William Davidson Institute; IZA Institute of Labor Economics

Date Written: May 02, 2017

Abstract

The vast literature on the effects of immigration on wages and employment is plagued by likely endogeneity and aggregation biases. Ours is among the first papers to address both of these issues by means of causality analysis and by accounting for human capital endowments. Our analysis confirms the previous finding of limited effect of immigration on unemployment and wages in aggregate analysis. We do find, however, evidence of distributional effects when accounting for human capital of non-migrants.

Keywords: immigration, unemployment, wages, UK, European Union

JEL Classification: F220, J210, J610

Suggested Citation

Tunali, Cigdem Börke and Fidrmuc, Jan and Fidrmuc, Jan and Campos, Nauro F., Immigration, Unemployment and Wages: New Causality Evidence from the United Kingdom (May 02, 2017). CESifo Working Paper Series No. 6452, Available at SSRN: https://ssrn.com/abstract=2977797 or http://dx.doi.org/10.2139/ssrn.2977797

Cigdem Börke Tunali

Istanbul University ( email )

34459 Istanbul
Turkey

Jan Fidrmuc (Contact Author)

Brunel University - Department of Economics and Finance ( email )

Uxbridge UB8 3PH
United Kingdom
+44 1895 266 528 (Phone)
+44 1895 269 770 (Fax)

L.E.M., Université de Lille ( email )

France

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Global Labor Organization (GLO) ( email )

Collogne
Germany

Institute for Strategy and Analysis, Government Office of the Slovak Republic ( email )

Bratislava
Slovakia

Nauro F. Campos

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

University of Michigan at Ann Arbor - The William Davidson Institute

724 E. University Ave.
Wyly Hall
Ann Arbor, MI 48109-1234
United States

IZA Institute of Labor Economics

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

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