Taken from the education thread
Irish Tom said:
I was thinking about this report from LSE:
http://cep.lse.ac.uk/pubs/download/pa014.pdf
There are potential economic benefits associated with migration, especially to fill gaps in the UK labour market – where there are shortages of workers, whether high- or low-skilled. While there may be costs to particular groups, there is little evidence of an overall negative impact on jobs or wages.
There is no evidence that EU migrants affect the labour market performance of native-born workers (Lemos and Portes, 2007; Goujard et al, 2011)
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Thanks for that Tom, and a 9 page report is far more palatable to digest...
but, reading further into the report it says..
LSE Report said:
Immigrants are, on average, more educated than their UK-born counterparts
I have to admit, I didn't expect that...but it leads into...
LSE Report said:
Unlike in the United States, where the skill composition of immigrants is tilted towards the unskilled, the skill composition of immigrants to the UK is more biased towards skilled workers. It might be expected therefore that there would be more pressure on wages among skilled workers in the UK, unless immigrants look for jobs that are not commensurate with their skills or it is harder to transfer certain acquired skills from one country to another.
So we have a skewing of the figures towards skilled labour in this country
Furthermore, if demand for labour is rising, there may be no effects of immigration on wages and employment. An open economy may adjust by means other than wages: one such mechanism is adjustment by changing the mix of goods the economy produces.
So, when we have a boom time and demand for labour out strips supply, then immigration may have no effect on wages....makes sense.
If labour demand exceeds labour supply in the receiving country, the impact of immigration will be different from that in a country already at full employment. Concerns about substitution and displacement of the UK-born workforce become more prevalent when output is demand-constrained, as in a recession or when capital is less mobile.
But, in times of recession with a glut in the workforce supply, then immigration more readily affects the labour market
In short, recent empirical research on the labour market effects of immigration to the UK finds little evidence of overall adverse effects of immigration on wages and employment for people born in the UK.
The line yourself and others like to pick out - but note the use of overall, so we are talking the average, though as stated earlier in the report immigration takes a higher role in skilled jobs in the UK, where there is little to no downward pressure on wages....but...
Nevertheless, there may be some downward pressure in the low wage labour market where (despite their higher relative education levels) many new immigrants tend to find work. There may also be a positive effect on wages in the high wage labour markets where it may take more time for the skills that immigrants bring to transfer.
So, there does seem to be evidence of a downward pressure on the wages in the low skilled labour market....which is what we have been saying all along, it just gets masked in the official reports by the overall picture which includes the positive effect in the high wage labour market.
So no, I don't accept that the experience from a lot of people involved in the construction, agricultural and manual labour markets about the depression of wages from mass European immigration is just 'anecdotal' and not borne out by official figures.