Fear, Unemployment and Migration

David Blanchflower and Chris Shadforth

Economic Journal, 2009, vol. 119, issue 535, F136-F182

Abstract: We examine the impact on the UK economy of the flow of workers from ten East European countries after their accession to the European Union. We find evidence that those most susceptible to competition from these workers have seen weaker wage inflation. We document that the presence of these foreign workers has increased the fear of unemployment and helped to contain wage pressure. We argue that this inflow of workers has increased supply by more than it has raised demand and, thus, had the effect of reducing both inflationary pressures and the natural rate of unemployment. Copyright © The Author(s). Journal compilation © Royal Economic Society 2009.

Date: 2009
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Journal Article: Fear, Unemployment and Migration (2009)
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