Examining the Relationship between Unemployment and Immigration

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University (Bardhan, 2001, 467).

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TABLE OF CONTENTS

INTRODUCTION1

LITERATURE REVIEW2

Impacts of immigration on labor market in theory6

Empirical approach11

Unemployment Rises and Immigrants17

More immigrants, less unemployment18

Youth in the labor market19

A8 immigrants are too good19

Immigrant labor market20

More anti-immigrant rhetoric harms the developed countries21

RESULTS AND ANALYSIS23

REFERENCES37

INTRODUCTION

In the United Kingdom, one of the most important issues regarding the public policy is Immigration.

As the economic situation of the world, tends to become bleak, the immigration tends to rise. People form lesser developed countries tend to move to the developed countries for a better lifestyle and to improve the overall economic conditions (Andrew 2002, pp. 52-69). As reported by the BBC News (2012), the net immigration, which is defined as immigration minus emigration from the UK trebled from less than 100,000 per year in the early 1990s to over 250,000 in 2012. The reason of this increasing trend may attributed to the fact that the poor countries provide cheap labor to fill low-skilled jobs in rich countries, with citizens increasingly demanding and qualified.

However, immigration is the subject of huge controversies and for this reason has been studied in those countries where this phenomenon is important, and the relationship between unemployment tends to be directly proportional to each other. Experts tends to be of the opinion that immigration tends to exert little pressure on the active population, however, is not exempt from groups of opinion against this phenomenon. As the world of today tends to operate in a context of the global village, therefore, it is important to understand that immigration is backed by the thought of improving the current lifestyle. The main intend of this study is to scrutinize the relationship between the two notions and decipher the relationship between the two phenomena's (Immigration and unemployment) by running the regression of these two. Then develops an effective and efficient understanding relating to the subject. Moreover, this study also intends to end a debate by cultivating a useful conclusion of the subject.

LITERATURE REVIEW

This chapter of the study intends to inculcate the definitions of theories and the concepts related to immigration and unemployment. As highlighted that immigration is backed by the intention to improve the economic situation. However, it is not essential that immigration does tend to solve the problem of unemployment. As the immigrant labor does not have the same characteristics as the Aboriginal workforce (in terms of training, qualification, aspirations, but also vulnerability), immigration will affect not only the volume of labor supply, but also the structure of the workforce. Before rendering any notions related to immigration, ...