Impacts of Immigrants to UK and UK Immigration Policy on its Labour Essay

Impacts of Immigrants to UK and UK Immigration Policy on its Labour Market - Essay Example The composition of the of the incoming immigrants is usually very different from that of the population of the receiving country on matters pertaining to demographic, cultural and socioeconomic attributes (Okkerse, 2008). As a corollary, the demographic and socioeconomic effects of international migration have become very apparent in the contemporary world and this has gained the attention of policy-makers and the society in general. This has consequently made the immigration process a playing field for numerous studies in the 21st century (e.g. Clark and Drinkwater, 2010; Macura et al. 2005) In theory, the effects of international migration on earnings and jobs for the population in the host country is critically contingent to the extent to which migrants’ skills are complements or substitutes to the skills of the population in the host country, and on how immigration impacts the demand for labour in the host country (Hatton and Tani, 2005). Apart from changes in salaries and employment Dustmann et al, (2008) asserts that there are at least two other adjustment mechanisms in which an economy acts in response to immigration. Besides enlarging labor supply, immigration has the propensity to increase the demand for labor (Saleheen, and Shadforth 2006). Immigrants increase the consumer demand for goods and services in the host country and in the long run, immigration can lead to more investment in the host country (Schmitt and Wadsworth 2007). As a result, this paper aims at identifying the effects of immigration to the UK and UK immigration policy on its labor market . An empirical and experimental research by Dustmann et al (2013) on the labor market impacts of immigration in the UK shows that immigration has a moderately insignificant impact on the average earnings and salary distribution low, medium, and high paid employees.  Ã‚