GEP Research Paper 05/11
Migration, Trade and Wages
Alexander Hijzen and Peter Wright
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.
Issued in May 2005.
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