September 30, 2016

Plans for a separate London work permit revealed by London’s Mayor Sadiq Khan

In a move aiming to prevent the potential mass departure of highly skilled foreign workers when Britain eventually leaves the EU, City Hall confirmed this week that it is working with government on a separate work permit system for the capital.

While Khan has dismissed the prospect of London declaring itself a separate state (the capital voted 59% in favor of remaining in the EU in June’s referendum) he believes a model that ensures London is still able to attract and recruit the best talent is vital for the future of the city’s businesses.

London’s Mayor hopes to carve out the best possible deal for the capital with the support of key Brexit figures, including Brexit Secretary David Davis, Chancellor Philip Hammond, and Foreign Secretary Boris Johnson, and the UK’s new Prime Minister, Teresa May. 

Khan launched his #LondonIsOpen campaign in July to show that London remains united and open for business and to the world following the EU referendum.

Abdurrahman B. Aydemir has written about skill-based immigration for IZA World of Labor. He notes that labor market prospects are better for skill-based immigrants than for other immigrants, but stresses that designing skill-based selection policies is complicated: policies need to reflect labor market characteristics and the applicant pool. “To maximize benefits, immigrant selection policies should be complemented by economic integration policies to ease the transfer of foreign human capital.”

In his IZA World of Labor article, Volker Grossmann explores how immigration affects investment and productivity in host and home countries. “Immigration by high-skilled workers attracts foreign direct investment, helps firms find investment opportunities abroad, and raises per capita income by boosting productivity.” However, despite triggering residential investment in the host country, immigration also raises housing costs, with undesirable income distribution effects. Grossmann recommends that policymakers consider “selective immigration policies that attract high-skilled workers, accompanied by redistributive measures that benefit low-income households in the host country and by compensating measures for the home countries that lose high-skilled migrants.”

Related articles: 
Skill-based immigration, economic integration, and economic performance, by Abdurrahman B. Aydemir
How immigration affects investment and productivity in host and home countries, by Volker Grossmann 
See here for curated content on migration policy