Explaining trends in UK immigration

Hatton, Timothy J.

doi:10.1007/s00148-005-0015-1

“…9 These facts come from the U.K. International Passenger Survey. Similar facts are also reported in Hatton (2005).…”

supporting

confidence: 90%

“…Beyond this, several studies find evidence suggesting that the change in skill mix in a local labor market due to immigration may induce firms to adopt new production techniques that use the immigrant labor factor intensively. These new techniques, in turn, may generate productivity gains Green 2003 and2005;Beaudry et al 2010;Caselli and Coleman 2006). Another channel through which immigration may foster productivity gains is through increased competition or specialization of production activities between natives and immigrants.…”

mentioning

confidence: 99%

Immigration, Trade and Productivity in Services: Evidence from U.K. Firms

Ottaviano¹,

Peri²,

Wright³

2015

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This paper explores the impact of immigrants on the imports, exports and productivity of serviceproducing firms in the U.K. Immigrants may substitute for imported intermediate inputs (offshore production) and they may impact the productivity of the firm as well as its export behavior. The first effect can be understood as the re-assignment of offshore productive tasks to immigrant workers. The second can be seen as a productivity or cost cutting effect due to immigration, and the third as the effect of immigrants on specific bilateral trade costs. We test the predictions of our model using differences in immigrant inflows across U.K. labor markets, instrumented with an enclave-based instrument that distinguishes between aggregate and bilateral immigration, as well as immigrant diversity. We find that immigrants increase overall productivity in service-producing firms, revealing a cost cutting impact on these firms. Immigrants also reduce the extent of country-specific offshoring, consistent with a reallocation of tasks and, finally, they increase country-specific exports, implying an important role in reducing communication and trade costs for services. AbstractThis paper explores the impact of immigrants on the imports, exports and productivity of serviceproducing firms in the U.K. Immigrants may substitute for imported intermediate inputs (offshore production) and they may impact the productivity of the firm as well as its export behavior. The first effect can be understood as the re-assignment of offshore productive tasks to immigrant workers. The second can be seen as a productivity or cost cutting effect due to immigration, and the third as the effect of immigrants on specific bilateral trade costs. We test the predictions of our model using differences in immigrant inflows across U.K. labor markets, instrumented with an enclave-based instrument that distinguishes between aggregate and bilateral immigration, as well as immigrant diversity. We find that immigrants increase overall productivity in service-producing firms, revealing a cost cutting impact on these firms. Immigrants also reduce the extent of country-specific offshoring, consistent with a reallocation of tasks and, finally, they increase country-specific exports, implying an important role in reducing communication and trade costs for services.

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“…Other papers in the literature that analyze the determinants of migration to the U.S. are Borjas (1987), Borjas and Bratsberg (1996) and Yang (1995). Hatton (2005) investigates trends in UK net migration in the last decades. Finally, Helliwell (1997Helliwell ( , 1998 sheds light on factors affecting labor movements in his investigation of the magnitude of immigration border effects, using data on Canadian interprovincial, US interstate and US-Canada cross-border immigration.…”

Section: Introductionmentioning

confidence: 99%

International migration: a panel data analysis of the determinants of bilateral flows

Mayda

¹

2009

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In this paper I empirically investigate the determinants of migration inflows into fourteen OECD countries by country of origin, between 1980 and 1995. I analyze the effect on migration of average income and income dispersion in destination and origin countries. I also examine the impact of geographical, cultural, and demographic factors as well as the role played by changes in destination countries' migration policies. My analysis both delivers estimates consistent with the predictions of the international migration model and generates empirical puzzles.

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“…Beyond this, several studies …nd evidence suggesting that the change in skill mix in a local labor market due to immigration may induce …rms to adopt new production techniques that use the immigrant labor factor intensively. These new techniques, in turn, may generate productivity gains Green, 2003 and2005;Beaudry et al, 2010;Caselli and Coleman, 2006). Another channel through which immigration may foster productivity gains is through increased competition or specialization of production activities between natives and immigrants.…”

mentioning

confidence: 99%

Immigration, trade and productivity in services: Evidence from U.K. firms

Ottaviano

¹

,

Peri

²

,

Wright

³

2018

Journal of International Economics

View full text Add to dashboard Cite

This paper explores the impact of immigrants on the imports, exports and productivity of serviceproducing firms in the U.K. Immigrants may substitute for imported intermediate inputs (offshore production) and they may impact the productivity of the firm as well as its export behavior. The first effect can be understood as the re-assignment of offshore productive tasks to immigrant workers. The second can be seen as a productivity or cost cutting effect due to immigration, and the third as the effect of immigrants on specific bilateral trade costs. We test the predictions of our model using differences in immigrant inflows across U.K. labor markets, instrumented with an enclave-based instrument that distinguishes between aggregate and bilateral immigration, as well as immigrant diversity. We find that immigrants increase overall productivity in service-producing firms, revealing a cost cutting impact on these firms. Immigrants also reduce the extent of country-specific offshoring, consistent with a reallocation of tasks and, finally, they increase country-specific exports, implying an important role in reducing communication and trade costs for services.

show abstract

Explaining trends in UK immigration

Cited by 112 publications

References 18 publications

Immigration, Trade and Productivity in Services: Evidence from U.K. Firms

Immigration, Trade and Productivity in Services: Evidence from U.K. Firms

International migration: a panel data analysis of the determinants of bilateral flows

Immigration, trade and productivity in services: Evidence from U.K. firms

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