The Long Term Impacts of Migration in British Cities: Diversity, Wages, Employment and Prices

Max Nathan

MPRA Paper from University Library of Munich, Germany

Abstract: British cities are becoming more culturally diverse, with migration a main driver. Is this growing diversity good for urban economies? This paper explores, using a new 16-year panel of UK cities. Over time, net migration affects both local labour markets and the wider economy. Average labour market impacts appear neutral. Dynamic effects may be positive on UK-born workers’ productivity and wages (via production complementarities for higher skill workers) or negative on employment (if migrants progressively displace lower-skill natives from specific sectors). The results, which survive causality checks, suggest both processes are operating in British cities. Long-term industrial decline and casualisation of entry-level jobs help explain the employment findings.

Keywords: cities; migration; cultural diversity; labour markets; productivity; urban economics (search for similar items in EconPapers)
JEL-codes: D24 J15 J61 O18 R11 R23 (search for similar items in EconPapers)
Date: 2011-02-15
New Economics Papers: this item is included in nep-hme and nep-ure
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Related works:
Working Paper: The long term impacts of migration in British cities: diversity, wages, employment and prices (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:29465

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