The focus of this chapter is to critically appraise and analyse the literature that is related to immigration and labour force market dynamics,implication on native population,long term implications of immigrants on labour market and spatial correlation approach and empirical evidence. Due to the fact that immigration has a long history within the UK, therefore there are numerous studies that have been undertaken within the scope of this investigation. The chapter highlights any critical gaps that have been found within the relevant literature.
Immigration and Labour Force Market Dynamics
There is significant attention given to the study of immigration and its implications on the labour force dynamics within the domestic markets …show more content…
The empirical evidence of this has been provided by Card (2001), which has pointed out that at the beginning of the “highly skilled migrant program” within the UK, the overall wages within the areas of high migration exhibited short term decline. However, Hatton & Tani (2003) have argued that the short and medium term wages are unaffected if the immigrant population has complementary skills and competencies to that of the domestic labour force. (…) has provided the empirical evidence from the immigration from the A8 European countries into the UK after their accession to the EU. This area of the labour force dynamics has been highlighted by Dustmann et al (2005). The author has argued that in scenarios when the skills and competencies are competing in nature between migrant and native population, then the resulting increased supply of these skills lead to higher internal competition within the labour markets, which in turn leads to higher overall bargaining power of businesses. However, on the other hand, if the skills and competencies brought by the immigrants complement that of the native population, then it is likely to raise the overall wages within the labour market due to the attractiveness of the …show more content…
According to McCollum (2013), the overall impact of immigration on the desirability of labour market for the native population depends upon the time and place of the immigration. Ruhs & Silva (2014) have pointed out that the need for different typology of skills and competences within a labour market depends upon the overall lifecycle position of the businesses. Sirkeci et al (2014) has reviewed the empirical evidence that has been developed within literature with the focus on comparing the wage changes between the immigrant and native population. It has been noted that although in the short term, the native population wages have shown decline and stagnation, however over a longer period of time, the difference between the two population typologies does not different