Wednesday 22 October 2008

Dustmann

Large proportion of working immigrants are recent arrivals, 8% arrived in the last year, one third in the last 10.1
points to an increasing diversity in the country of origin of immigrants.2
“He ¯nds that immigrants are more likely to be self-employed than UK-born individuals with similar levels of skills. Borjas explains these results with what he calls enclave effects: Immigrants create enclaves by concentrating in geographical areas. Such enclaves then provide self-employment opportunities for other members of the respective national group. In these enclaves UK-born individuals lack knowledge of language and preferences of potential customers and have therefore a disadvantage when competing for the same self-employment opportunities.”3

“When computing the effect of language prffciency on the employment and wage gap between UK-born individuals and ethnic minority immigrants, the study concludes that lan-guage largely reduces differences in both economic outcomes.”4

claim that it is difficult to quantify the impact of immigration on the employment and wages of the resident population (1) on unemployment no clear evidence of adverse effect, some indication of increased unemployment but so small to be statistically insignificant (2) on wages, some indication of higher wages.5
1C Dustmann, F Fabri, I Preston & J Wadsworth, Labour Market Performance of Immigrants in the UK Labour Market, Home Office Online Report 05/03 available online at www.homeoffice.gov.uk/rds/pdfs2/rdsolr0503.pdf 19.
2C Dustmann, F Fabri, I Preston & J Wadsworth, Labour Market Performance of Immigrants in the UK Labour Market, Home Office Online Report 05/03 available online at www.homeoffice.gov.uk/rds/pdfs2/rdsolr0503.pdf 19–20.
3C Dustmann, F Fabri, I Preston & J Wadsworth, Labour Market Performance of Immigrants in the UK Labour Market, Home Office Online Report 05/03 available online at www.homeoffice.gov.uk/rds/pdfs2/rdsolr0503.pdf, 41.
4C Dustmann, F Fabri, I Preston & J Wadsworth, Labour Market Performance of Immigrants in the UK Labour Market, Home Office Online Report 05/03 available online at www.homeoffice.gov.uk/rds/pdfs2/rdsolr0503.pdf, 57.
5C Dustmann, F Fabri, I Preston & J Wadsworth, The Local Labour Market Effects of Immigration in the UK, Home Office Online Report 06/03 available online at www.homeoffice.gov.uk/rds/pdfs2/rdsolr0603.p , 4–7.

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