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Trainspotting: 'Good Jobs', Training and Skilled Immigration

Author

Listed:
  • Mountford, Andrew

    (Royal Holloway, University of London)

  • Wadsworth, Jonathan

    (Royal Holloway, University of London)

Abstract
While skilled immigration ceteris paribus provides an immediate boost to GDP per capita by adding to the human capital stock of the receiving economy, might it also reduce the number of 'good jobs', i.e. those with training, available to indigenous workers? We analyse this issue theoretically and empirically. The theoretical model shows how skilled immigration can affect the sectoral allocation of labor and how it may have a positive or negative effect on the training and social mobility of native born workers. The empirical analysis uses UK data from 2001 to 2018 to show that training rates of UK born workers have declined in a period where immigration has been rising strongly, and have declined significantly more in high wage non-traded sectors. At a more disaggregated level however this link is much less strong, though there is evidence of different training effects of skilled immigration across traded and non-traded sectors. Hiring of UK born workers in high wage non-traded sectors has also been negatively affected by skilled immigration, although this effect is not large. Taken together the theoretical and empirical analyses suggest that skilled immigration may have some role in allocating native born workers away from 'good jobs' sectors but it is unlikely to be a major driver of social mobility.

Suggested Citation

  • Mountford, Andrew & Wadsworth, Jonathan, 2019. "Trainspotting: 'Good Jobs', Training and Skilled Immigration," IZA Discussion Papers 12409, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12409
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    References listed on IDEAS

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    Cited by:

    1. Jiaqi Li & Anna Valero & Guglielmo Ventura, 2020. "Trends in job-related training and policies for building future skills into the recovery," CVER Research Papers 033, Centre for Vocational Education Research.
    2. Oswald-Egg, Maria Esther & Siegenthaler, Michael, 2023. "Train Drain? Access to Foreign Workers and Firms' Provision of Training," IZA Discussion Papers 15902, Institute of Labor Economics (IZA).
    3. Maria Esther Oswald-Egg & Michael Siegenthaler, 2021. "Train drain? Access to skilled foreign workers and firms' provision of training," KOF Working papers 21-495, KOF Swiss Economic Institute, ETH Zurich.
    4. Maria Esther Oswald-Egg & Michael Siegenthaler, 2021. "Train drain? Access to skilled foreign workers and firms' provision of training," Economics of Education Working Paper Series 0186, University of Zurich, Department of Business Administration (IBW).

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    More about this item

    Keywords

    income distribution; training; immigration;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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