Migration, Trade and Wages

Alexander Hijzen () and Peter William Wright ()

Working Papers from CEPII research center

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 during the period 1975-1996. 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; globalization; factor markets; labor market (search for similar items in EconPapers)
JEL-codes: C31 D33 F11 F16 F22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2005-05
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Persistent link: http://EconPapers.repec.org/RePEc:cii:cepidt:2005-06

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