Labour Market Performance of Immigrants: New Evidence from Linked Administrative Data

Using administrative data from the Annual Survey of Hours and Earnings linked to the 2011 Census of England and Wales, this paper explores the labour market performance of first-generation immigrants and compares it to that of UK-born employees. By focusing on various labour market outcomes and distinguishing immigrants based on their years of residence in the UK, the analysis reveals that more recent immigrants, on average, earn less, work longer hours, and are more likely to be employed in low-skilled occupations or temporary employment compared to observationally equivalent UK-born employees. However, the labour market performance of immigrants with ten or more years of residence in the UK is more comparable to that of their UK-born counterparts. These patterns are similar for males and females, but there is considerable heterogeneity in terms of ethnicity, country of birth, and reason for migration, as well as across the pay distribution.