Immigration and labor shortages: Learning from Japan and the United Kingdom

Abstract

Industrialized countries have increasingly used skill-based selective migration policies to reduce labor and skill shortages. But are these policies effective? This paper uses Japan and the United Kingdom to illustrate how immigration policy and employment, training and labor practices influence labor and skill supply. Until recently, these two countries had different migration policies and labor practices. Yet data shows similar patterns of labor and skill shortage profiles in both countries. This paper draws on empirical research to argue that such outcomes suggest that immigration policies will not alleviate labor and skill shortages unless accompanied by the transformation of employment and training practices.