Journal of Population Economics

, Volume 23, Issue 4, pp 1189–1211 | Cite as

Migration, trade and wages

Original Paper

Abstract

This paper analyses the impact of immigration on the UK labour market using the GNP function approach. We find that an increase in the number of unskilled immigrants reduces the wages of unskilled domestic workers, though 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 immigrant workers and imports are substitutes in production, whilst skilled immigrant workers and imports are complements.

Keywords

Immigration International trade Wage inequality 

JEL Classification

D33 F16 F22 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Bell BD (1997) The performance of immigrants in the United Kingdom: evidence from the GHS. Econ J 107(441):333–344CrossRefGoogle Scholar
  2. Berman E, Bound J, Griliches Z (1994) Changes in the demand for skilled labor within US manufacturing: evidence from the Annual Survey of Manufactures. Q J Econ 109(2):367–397CrossRefGoogle Scholar
  3. Berman E, Bound J, Machin S (1998) Implications of skill-biased technological change: international evidence. Q J Econ 113(4):1245–1279CrossRefGoogle Scholar
  4. Berndt E (1991) The practice of econometrics: classic and contemporary. Addison-Wesley, ReadingGoogle Scholar
  5. Berndt ER, Wood DO (1975) Technology, prices, and the derived demand for energy. Rev Econ Stat 57(3):259–268CrossRefGoogle Scholar
  6. Berndt ER, Wood DO (1981) Engineering and econometric interpretations of energy-capital complementarity: reply and further results. Am Econ Rev 71(5):1105–1110Google Scholar
  7. Blackorby C, Russell RR (1989) Will the real elasticity of substitution please stand up? (a comparison of the Allen/Uzawa and Morishima elasticities). Am Econ Rev 79(4):882–888Google Scholar
  8. Borjas GJ (1995) The economic benefits from immigration. J Econ Perspect 9(2):3–22Google Scholar
  9. Borjas GJ (2003) The labor demand curve is downward sloping: re-examining the impact of immigration on the labor market. Q J Econ 118(4):1335–1374CrossRefGoogle Scholar
  10. Burgess DF (1974) Production theory and the derived demand for imports. J Int Econ 4(2):103–117CrossRefGoogle Scholar
  11. Card D (1990) The impact of the Mariel boatlift on the Miami labor market. Ind Labor Relat Rev 43(2):245–257CrossRefGoogle Scholar
  12. Chambers RG (1988) Applied production analysis: a dual approach. Cambridge University Press, CambridgeGoogle Scholar
  13. Clarke J, Salt J (2003) Work permits and foreign labour in the UK: a statistical review. Labour Mark Trends 111(11):563–574Google Scholar
  14. Dunlevy JA, Hutchinson WK (1999) The impact of immigration on American import trade in the late nineteenth and early twentieth centuries. J Econ Hist 59(4):1043–1062CrossRefGoogle Scholar
  15. Dustmann C, Fabbri F, Preston I (2005) The impact of immigration on the British labour market. Econ J 115(507):F324–F341xxxCrossRefGoogle Scholar
  16. Feenstra RC, Hanson GH (1999) The impact of outsourcing and high-technology capital on wages: estimates for the United States, 1979–1990. Q J Econ 114(3):907–940CrossRefGoogle Scholar
  17. Friedberg RM (2001) The impact of mass migration on the Israeli labor market. Q J Econ 116(4):1373–1408CrossRefGoogle Scholar
  18. Gaston N, Nelson D (2002) The wage and employment effects of immigration: trade and labour market perspectives. In: Greenaway D, Wakelin K, Upward R (eds) Trade, investment, migration and labour market adjustment. Palgrave Macmillan, Basingstoke, pp 201–235Google Scholar
  19. Girma S, Yu Z (2002) The link between immigration and trade: evidence from the United Kingdom. Rev World Econ (Weltwirtsch Arch) 127(1):115–130CrossRefGoogle Scholar
  20. Glover S, Gott C, Loizillon A, Portes J, Price R, Spencer S, Srinivasan V, Willis C (2001) Migration, an economic and social analysis, RDS Occasional Paper, 2001(67). Home Office, LondonGoogle Scholar
  21. Gould DM (1994) Immigrant links to the home country: empirical implications for US bilateral trade flows. Rev Econ Stat 76(2):302–16CrossRefGoogle Scholar
  22. Greenwood MJ, Hunt G, Kohli U (1996) The short-run and long-run factor-market consequences of immigration to the United States. J Reg Sci 36(1):43–66CrossRefGoogle Scholar
  23. Gregory M, Zissimos B, Greenhalgh C (2001) Jobs for the skilled: how technology, trade, and domestic demand changed the structure of UK employment, 1979–90. Oxf Econ Pap 53(1):20–46CrossRefGoogle Scholar
  24. Hanson GH, Slaughter MJ (2002) Labor-market adjustment in open economies: evidence from US states. J Int Econ 57(1):3–29CrossRefGoogle Scholar
  25. Harrigan J (2000) International trade and American wages in general equilibrium, 1967–1995. In: Feenstra RC (ed) The impact of international trade on wages. University of Chicago Press, Chicago, pp 171–196Google Scholar
  26. Harrigan J, Balaban R (1999) US wages in general equilibrium: the effects of prices, technology, and factor supplies, 1963–1991, NBER Working Papers no. 6981Google Scholar
  27. Head K, Ries J (1998) Immigration and trade creation: econometric evidence from Canada. Can J Econ 31(1):47–62CrossRefGoogle Scholar
  28. Hijzen A, Pisu M, Upward R, Wright P (2007) Employment, job turnover and the trade in producer services: firm-level evidence. GEP Research Paper no. 27, University of NottinghamGoogle Scholar
  29. Kohli U (1991) Technology, duality, and foreign trade: the GNP function approach to modeling imports and exports. Harvester Wheatsheaf, New YorkGoogle Scholar
  30. Kohli U (1999) Trade and migration: a production-theory approach. In: Faini R, de Melo J, Zimmerman KF (eds) Migration: the controversies and the evidence. Cambridge University Press, CambridgeGoogle Scholar
  31. Kohli U (2002) Migration and foreign trade: further results. J Popul Econ 15(2):381–387CrossRefGoogle Scholar
  32. Leamer EE (1995) The Hecksher–Ohlin model in theory and practice. Princeton studies in international economics. Princeton University Press, PrincetonGoogle Scholar
  33. Lewis E (2003) Local, open economies within the US: how do industries respond to immigration? Working Paper 04-1, Federal Reserve Bank of PhiladelphiaGoogle Scholar
  34. Machin S, Van Reenen J (1998) Technology and changes in skill structure: evidence from seven OECD countries. Q J Econ 113(4):1215–1244CrossRefGoogle Scholar
  35. Mundell RA (1957) International trade and factor mobility. Am Econ Rev 47(3):321–335Google Scholar
  36. Rendall M, Ball D (2004) Immigration, emigration and the ageing of the overseas-born population in the United Kingdom. Popul Trends 116:18–27Google Scholar
  37. Ryan DL, Wales TJ (2000) Imposing local concavity in the translog and generalized leontief cost functions. Econ Lett 67(3):253–260CrossRefGoogle Scholar
  38. Slaughter MJ (1999) Globalisation and wages: a tale of two perspectives. World Econ 22(5):609–629CrossRefGoogle Scholar
  39. Tombazos CG (2003) A production theory approach to the imports and wage inequality nexus. Econ Inq 41(1):42–61CrossRefGoogle Scholar
  40. Wooldridge JM (2002) Econometric analysis of cross section and panel data. MIT, CambridgeGoogle Scholar
  41. Zellner A (1962) An efficient method of estimating seemingly unrelated regressions and tests for aggregation bias. J Am Stat Assoc 57(298):348–368CrossRefGoogle Scholar

Copyright information

© Springer-Verlag 2009

Authors and Affiliations

  1. 1.ELS/EAPOECDParis Cedex 16France
  2. 2.Leverhulme Centre for Research in Globalisation and Economic Policy (GEP), School of EconomicsUniversity of NottinghamNottinghamUK

Personalised recommendations