In December 2015, the EU Referendum Act received the Royal Assent and became more probable. This legislation gave Britain the possibility to organize a Referendum about UK´s continuing the membership in the European Union. The United Kingdom held a referendum on June 1975 to become a member of the European Union and in that year, this referendum was called Common Market referendum and EEC membership. The electorate expressed significant support for the EEC membership, with up to 67 per cent in favour on a 65% turnout. After the EU Referendum Act made the referendum more probable, business and individuals started considering the potential impact of the UK leaving the EU, often referred to as a "Brexit". Former Prime Minister David Cameron with his government started negotiating with the EU representatives about a possible way to give more power back to the UK Government. The negotiations were about some potential changes to the UK´s existing EU membership; new terms have been agreed or more clarity received.
The UK´s relationship with the EU has been controversial ever since the Treaty of Rome established the later. Indeed, public opinion polls since 1992 demonstrate a majority opinion amongst the UK electorate that remains critical of the EU, with a not insignificant number desiring withdrawal. Even successive governments and British establishment e.g. Lord Hanley, 3 July 1995, House of Lords claimed the huge benefit of remaining in the EU, the public opinion wasn´t really pro EU.
Table of Contents
1 Introduction
2 What has the EU membership ever done for the UK?
2.1 Economy, Growth effect, trade boosting
2.2 Education and Research
3 British labour market description
3.1 Impact of the free labour mobility on the British labour market
3.2 Unemployment rate, statistics about different population groups
4 Brexit debates
4.1 Trade and economy
4.2 Immigration question and the position of the UK in the world
5 Meaning of Brexit for the UK economy
5.1 Banking and financial services, corporate finance and taxes
5.2 Employment and unemployment share schemes
5.3 Construction and infrastructure
5.4 Competition, intellectual property and data protection
6 The UK after Brexit
6.1 Two years transition
6.2 Advantages and disadvantages of the Brexit
6.3 Possible scenarios for the British economy
7 Conclusion
Research Objectives and Key Topics
This paper examines the role of EU labour mobility as a potential driver for the Brexit vote by analyzing the economic impacts of EU membership on the United Kingdom. The research questions whether immigration negatively affected the British labour market or if these arguments were politically motivated, ultimately evaluating the economic consequences of leaving the European Union.
- The economic benefits and growth effects of UK membership in the EU.
- Empirical analysis of the impact of free labour mobility on the British labour market.
- Evaluation of the Brexit debate regarding immigration, sovereignty, and trade.
- Comparative assessment of post-Brexit economic scenarios (Norwegian, Swiss, EFTA, and WTO models).
Excerpt from the Book
3.1 Impact of the free labour mobility on the British labour market
After the UK opened its labour market, the number of foreign-born people working in the UK increased from 2.9 million in 1993 to 6.6 million in 2014 (LFS, 2015). In the year 2006, the number of foreign-born workers in the UK increased significantly and this corresponds to the opening of the UK labour market to workers from the A8 countries (Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovakia and Slovenia) in mid-2004. Since 2006, the possible negative effects of immigration on wages and employment outcomes of British native workers is the core concern in the political and public debates in the UK.
Models assuming limited flexibility of output mix or closeness to international trade tend to predict that immigration will have long-run wage and employment effects. Such features are typical of the underlying framework used as a motivation for empirical work in this literature; see, for example, the models of Borjas (1999) or Card (2001). On the other hand, models assuming a sufficiently high degree of flexibility in the mix of output produced in the traded goods sector predict an absence of long-run effects on labour market outcomes, at least to small scale immigration (C. Dustmann/F.Fabbri/I. Preston 2005, F326).
Regarding British immigration there is some evidence that mobility is in general low. Gregg et al. (2004) show that mobility amongst low skill/education people is limited, and often constrained by the housing market. Hatton and Tani (this Feature) use data from the International Passenger Survey and the National Health Service Registration Data to quantify the relationship between net inflows from abroad and the flows of residents within Britain.
Chapter Summaries
1 Introduction: Provides an overview of the legal steps toward the 2016 referendum and outlines the scope of the analysis regarding labour mobility.
2 What has the EU membership ever done for the UK?: Analyzes historical economic growth, trade benefits, and the role of EU membership in education and research.
3 British labour market description: Uses statistical data to evaluate the impact of immigration on employment rates and the labour market structure.
4 Brexit debates: Discusses the central arguments of the leave campaign, specifically focusing on trade, immigration, and national sovereignty.
5 Meaning of Brexit for the UK economy: Investigates the projected negative impacts on sectors like finance, construction, and data protection.
6 The UK after Brexit: Examines the transition period and presents various economic models for the UK's future relationship with the EU.
7 Conclusion: Summarizes the findings, asserting that labour mobility did not negatively affect the British economy and highlighting the challenges of post-Brexit options.
Keywords
Brexit, European Union, Labour Mobility, British Economy, Immigration, Single Market, Trade, UK Referendum, Employment, Economic Growth, Sovereignty, Financial Services, EEA Model, WTO, Labour Market
Frequently Asked Questions
What is the primary focus of this research?
The paper investigates whether EU labour mobility acted as a genuine cause for the Brexit vote or if it was based on misconceptions, analyzing the economic effects of EU membership on the UK.
What are the central themes of the work?
The core themes include the impact of free movement on the British labour market, historical economic growth under EU membership, and the challenges the UK faces regarding trade and regulation after leaving the bloc.
What is the main research question?
The research asks if there is empirical evidence that free labour mobility within the EU harmed the British economy and if such concerns justified the decision to leave.
Which scientific methods are applied?
The paper employs a comparative analysis of economic statistics, reviewing existing academic literature, reports from the Office for National Statistics (ONS), and various institutional policy analyses.
What does the main body cover?
It covers the historical benefits of EU membership, statistical reviews of the labour market, an analysis of the Brexit debates, and an evaluation of four potential future economic models for the UK.
What keywords characterize the paper?
Key terms include Brexit, Labour Mobility, UK economy, Single Market, immigration, and economic growth.
Does the author believe immigration negatively impacted the UK labour market?
No, the author concludes that there is no empirical evidence showing that immigration stole jobs from native British citizens or had negative effects on the overall economy.
How does the author view the potential future of the UK outside the EU?
The author suggests that life outside the EU will likely bring significant economic uncertainty and that none of the available models (EEA, Swiss, EFTA, WTO) offer the same level of benefits as EU membership.
- Arbeit zitieren
- Rodrigue Bienvenue Nanfack (Autor:in), 2016, The European Labour Mobility, München, GRIN Verlag, https://www.grin.com/document/344882
