New minimum wage will increase migration to UK, claim anti-EU campaigners

Groups campaigning for the UK toleave the EUhave claimed the forthcoming increase in the country’sminimum wagewill prompt aboom of immigration.

TheVote LeaveandConservatives for Britaincampaigns, which are advocating a “no” vote in the futurereferendumon the UK’s membership of the EU, argue that the hike to the minimum wage due to come into effect next year will mean prime ministerDavid Cameron's aim to ban recent EU migrants fromclaiming benefitswill have no effect on migration.

MPSteve Baker, co-chair of Conservatives for Britain, commented that: “Even if the prime minister secures a deal onmigrant benefits, this wouldn’t have even the slightest impact on immigration flows. The living wage will make anytax credit cutsirrelevant […] This whole farce makes clear that the renegotiation has become focused on a trivial issue that is fatally undermined by the facts on the ground. The only way to take back control is to vote leave.”

The UK’s minimum wage for over-25s is set to increase to£7.20 an hourin 2016 and over£9by 2020, a policy branded thenational living wage.

The British government has committed to holding a referendum on the UK’s continued membership of the EU by 2017.Recent reportshave suggested it could take place as early assummer 2016.

Corrado Giuliettihas written for IZA World of Labor about whetherminimum wages induce immigration. He writes that there ismixed evidenceof whether minimum wages attract or deter migrants, and argues that: "When introducing or raising the minimum wage, policymakers should consider thepotential effects of the policy on the migration choices of individuals living abroad. Furthermore,minimum wage and immigration policies should be coordinatedif central and local governments wish to control the effects of the minimum wage beyond local borders."

Related articles:
Do minimum wages induce immigration?byCorrado Giulietti
Who benefits from the minimum wage—natives or migrants?byMadeline Zavodny