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Andrew Jack

Brexit and labour mobility

Global winners and losers in the labour market

Concerns about immigration played an important part in the discussions leading up to the Brexit referendum. What does economic analysis tell us about the effects of Brexit on UK labour markets? Emanuela Lotti investigates

The EU rejection of a UK request for a cap on unskilled migration represented one of the main steps towards the controversial ‘Brexit’ events.During the 2016 referendum campaign, it appeared that the main debate had been focusing on the trade-off between the benefits of free trade and the costs of labour mobility.

Is this the right way to look at Brexit? This view, for example, contrasts with the results of mainstream economic theory. Standard demand and supply models in the labour market show that labour mobility increases efficiency, despite the often-discussed distributional effects.

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