Nationality Impacts On Wages And Employment Status In The UK - Research Paper Example

Another interpretation of the same could be that following the recession of 2003, the UK regulated the flow of unskilled labor force within the nation, but continued to favor the highly skilled ones, so that the average wage rate, as well as the rate of employment in the nation, went up (given a fall in the supply of the same). These high skilled labor force included overseas students as well, who practically imposed no conditions over the labor market so as to adversely affect rates of employment and wages, though the quota for welcoming immigrants get filled up every year.

24Immigration is one of the most pestering issues surrounding the UK with a group of people arguing in favor of it, while the rest vehemently opposing the same. The nation recorded a net migration of almost 200,000 in 2009. In addition, the population census report shocked the national administrators after stating that almost half of the total growth in population between 1991 and 2001 is owed to foreign immigration. However, the impact of this high rate of immigration could not be intensely felt in the UK due to the strong state of the nation, capable of bearing the burden.

In fact, as many researchers have argued, immigration might even lead to economic growth in situations that the host nation has not reached its full-employment level due to lack of factors of production. On the other hand, most of the observers figure the change to lead to an economic slowdown owing to changes in the demographic structure. Given that unemployment rate and wage rate are the two most significant elements which evaluate the economic condition, the present paper uses secondary research methods to assess how immigration in the UK has affected either of the two variables.

The paper uses econometric research methods using STATA, to arrive at empirical results in support or against UK immigration.