Myths and reality.

This article examines concerns about the effects of immigration on the economy in Great Britain. There are three big worries about the economic and fiscal consequences of immigration. First, migrants steal jobs. Second, they lower wages. Third, they are benefit-scroungers, generating a net burden on taxpayers. How justified are such fears? The first is a myth. The accusation that migrants steal jobs is a version of the "lump of labour" fallacy--that there is only so much work to go around. But in a flexible economy the labour market adjusts to an increase in the supply of workers and more jobs are generated. Mr Dustmann's research also suggests that wages among existing workers have not been materially affected by immigrants; if anything they have risen. The third worry--that migrants are benefit-scroungers--is another myth. The vast majority come here to better their lot in the workplace. Unemployment rates among immigrants--except the Chinese or Indians--are higher than among people born in Britain, but this probably reflects difficulties in finding a job, such as poor language skills.