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Oxford Review of Economic Policy 2008 24(3):477-494; doi:10.1093/oxrep/grn024
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© The Authors 2008. Published by Oxford University Press. For permissions please e-mail: journals.permissions@oxfordjournals.org

This article appears in the following Oxford Review of Economic Policy issue: LABOUR MIGRATION IN EUROPE [View the issue table of contents]

The labour market impact of immigration

Christian Dustmann*
Albrecht Glitz**
Tommaso Frattini***
* Centre for Research and Analysis of Migration (CReAM), Department of Economics, UCL, e-mail: c.dustmann{at}ucl.ac.uk
** Department of Economics, Universitat Pompeu Fabra, and CReAM, e-mail: albrecht.glitz{at}upf.edu
*** CReAM, Department of Economics, UCL, e-mail: t.frattini{at}ucl.ac.uk


  Abstract

In the first part of this paper, we present a stylized model of the labour market impact of immigration. We then discuss mechanisms through which an economy can adjust to immigration: changes in factor prices, output mix, and production technology. In the second part, we explain the problems of empirically estimating how immigration affects labour market outcomes of the resident population and review some strategies to address these. We then summarize some recent empirical studies for the UK and other countries. We conclude with an outlook on what we believe are important avenues for future research.

Key Words: migration • labour market impact • wage distribution

Albrecht Glitz thanks the Barcelona Economics Program of CREA for its support.

1 For studies on housing prices see, for instance, Saiz (2003), Saiz (2007), Ottaviano and Peri (2007); for studies on prices see Lach (2007), Cortes (2008), Frattini (2008).

2 For a comprehensive survey of the literature on the labour market impact of immigration see Dustmann and Glitz (2005) and Okkerse (2008).

3 See Borjas et al. (2008) for a critical evaluation of this study.


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