Migration and Labour Market Differences: The Case of Wales

51 Pages Posted: 13 Sep 2004

See all articles by Stephen Drinkwater

Stephen Drinkwater

University of Surrey - Department of Economics; IZA Institute of Labor Economics

David Blackaby

University of Wales, Swansea

Date Written: August 2004

Abstract

The migration of labour can affect economies in several ways. This paper focuses on two of the economic impacts of migration in the context of the recent Welsh experience. Firstly, since migration is a key aspect of labour market flexibility, it is a mechanism through which local and regional labour market differences can be reduced. However, it is found that the most deprived parts of Wales have the lowest levels of migration and that both in and out-migration rates are negatively correlated with unemployment and sickness rates. Secondly, the characteristics of in and out-migrants have important implications for the current and future performance of local and regional economies. Using a variety of data sources, it is shown that people leaving Wales are younger and more educated than migrants to Wales. Furthermore, younger and more educated Welsh individuals appear to have a higher willingness to move than their counterparts living elsewhere in Britain.

Keywords: migration, local and regional labour markets, Wales

JEL Classification: J61, R23

Suggested Citation

Drinkwater, Stephen and Blackaby, David, Migration and Labour Market Differences: The Case of Wales (August 2004). IZA Discussion Paper No. 1275. Available at SSRN: https://ssrn.com/abstract=585309

Stephen Drinkwater (Contact Author)

University of Surrey - Department of Economics ( email )

Guildford
Surrey GU2 7XH
United Kingdom

IZA Institute of Labor Economics

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

David Blackaby

University of Wales, Swansea ( email )

Swansea SA2 8PP
United Kingdom
+44 1792 295168 (Phone)
+44 1792 295872 (Fax)

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