Daily Archives: May 10, 2012

Immigration has helped to raise average wages of most UK-born workers but held back wage growth for those at the most poorly paid end of the labour market, new study has shown.

Research published in the Review of Economic Studies examined the period between 1997 and 2005, when there was an increase in the foreign-born population equal to 3 per cent of the native population.

The authors – economists Christian Dustmann, Tommaso Frattini and Ian Preston – estimate that immigration depressed wages by 0.7p per hour at the 10th percentile, or the bottom layer, of UK-born workers.

But immigration contributed about 1.5p per hour to wage growth at the median and slightly more than 2p per hour at the 90th percentile.

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