The effects of immigration on unemployment: A case study of Sweden and the UK
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Problem: The creation of the European Union gave people the right of free movement between the membership countries. In theory, the creation of a single market should create many additional employment and earning opportunities for the workers in the member states of the EU (Bauer & Zammermann, 1999 cited at Borjas, 2010). Some natives believe that an increase in immigration will post a threat to them. They believe that their wages will go down and jobs will be taken from them. Is this true or is it just a sign of xenophobia?
Purpose of the Research: The purpose of this study was to replicate successfully the study: “Examining the Relationship between Immigration and Unemployment Using National Insurance Number Registration Data” by Lucchino, P., Rosazza – Bondibene, C., and Portes, J. from 2012. Then the same research methods were used in Swedish data analysis.
Methods: Data on unemployment and immigration was collected from Sweden and the UK and multiple regressions were run using the STATA11 software.
Conclusion: The immigration rate had no significant affect on the unemployment rate both in the UK and Sweden. However, adding a one year lagged immigration rate was found to be significant at a 5% significance level in the Swedish analysis, but was insignificant in the UK analysis. The control variables for labor supply proved to be insignificant in the analysis of both countries.
Place, publisher, year, edition, pages
Unemployment rate, immigration rate, Sweden, United Kingdom
IdentifiersURN: urn:nbn:se:mdh:diva-14849OAI: oai:DiVA.org:mdh-14849DiVA: diva2:536521
Subject / course
2012-06-07, 09:15 (English)
UppsokSocial and Behavioural Science, Law