Time4, that was in response to Carol's previous question, which I had explained.
Thanks for responding Carol.
:)
That report is really interesting, because it shows how marginal the impact of immigration is on pay.
Directly from the report:
"In the latter cases, the coefficients indicate that a 10 percentage point rise in the proportion of immigrants working in semi/unskilled services - that is, in care homes, bars, shops, restaurants, cleaning, for example - leads to a 1.88 percent reduction in pay."
So its actually smaller than 2%, but whatever we'll round up. It also needs to be noted that a 10 percentage point increase is incredibly large the entire rise in the number of immigrants working in the semi/unskilled services sector has increased by which is about 7 percentage points since the 2004-2006 period. The impact of migration on the wages of the UK-born in this sector since 2004 has been about 1 percent, over a period of 8 years.
Now this is not nothing, but it is not the main driver of low wages in these sectors in the UK.
It should be further noted that this effect is completely negated by the increases to the tax threshold over the last 5 years, as well as the rising minimum wage.
There are far larger other factors at play when we consider low pay, things like level of the minimum wage, the decline in trade union power, technological and industrial change, as well as the slow recovery from the 2008 financial crash.
For further reading:
www.niesr.ac.uk/blog/how-small-small-impact-immigration-uk-wages#.WPT-bIgrK00