Cross-occupational effects of immigration on native wages in the UK

Marco Alfano, Ross Mckenzie and Graeme Roy

Applied Economics Letters, 2024, vol. 31, issue 17, 1608-1612

Abstract: This article estimates the effect of immigration into an occupation on the wages of natives working in other, better-paid occupations. Using Annual Population Survey data from the UK we rank occupations by the Standard Occupation Classification provided by the ONS and find that increases in the migrant/native ratio raise average wages of natives working in the next higher ranked occupation by around 0.332%. Our findings have important implications for policy and public discourse. They suggest that debates over the economic impacts of migration often ignore the potential spill-over benefits that a migrant can bring to the outcomes for native workers elsewhere in the wage distribution, particularly in lower wage occupations.

Date: 2024
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DOI: 10.1080/13504851.2023.2204213

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