Migration, Trade and Wages

U. of Nottingham Working Paper No. 2005/11

46 Pages Posted: 3 Aug 2005

See all articles by Alexander Hijzen

Alexander Hijzen

Organization for Economic Co-Operation and Development (OECD)

Peter W Wright

University of Sheffield - Department of Economics

Date Written: 2005

Abstract

This study adopts a GNP function approach in order to examine the impact of migrant labour on domestic factors of production in the United Kingdom. We also examine the relationship between imports and migrants, which are two different facets of globalisation. We find that an increase in the number of unskilled migrants reduces the wages of unskilled domestic workers. However the quantitative impact of this increase is small. No discernible impact of migration is found for skilled native workers. The results also suggest that unskilled migrant workers and imports are substitutes in production, whilst skilled migrant workers and imports are complements.

Keywords: Immigration, International Trade, Wage Inequality

JEL Classification: C31, D33, F11, F16, F22

Suggested Citation

Hijzen, Alexander and Wright, Peter W, Migration, Trade and Wages (2005). U. of Nottingham Working Paper No. 2005/11, Available at SSRN: https://ssrn.com/abstract=764466 or http://dx.doi.org/10.2139/ssrn.764466

Alexander Hijzen (Contact Author)

Organization for Economic Co-Operation and Development (OECD) ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

Peter W Wright

University of Sheffield - Department of Economics ( email )

9 Mappin Street
Sheffield, S1 4DT
UNITED KINGDOM

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