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Why are incentives important?

Is immigration good or bad?

Emanuela Lotti discusses the impact of immigration on the labour market in the UK

It is almost impossible to watch the news and avoid hearing concerns about the number of immigrants entering the UK. Newspapers, television shows and public debates often focus on the negative impact of a liberal immigration policy.

In order to understand the general attitude of the public on immigration, economists often focus on the changes in the labour market. In reality, the impact of immigrants on the host economy (the UK in this case) goes beyond the role played by an increase in labour supply, in terms of wages and employment opportunities of native workers.

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Why are incentives important?

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