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The Impact of Immigration on the Wage Differential in Australia

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Author Info
Hsiao-Chuan Chang
Abstract

This paper investigates the impact of immigration on the wage differential between skilled and unskilled labour using simulation analysis from a dynamic intertemporal general equilibrium model. The results show that immigration cannot explain variations of the wage differential in Australia during the past 10 years. In most of the years investigated, immigration only explains a small part of the change in the wage differential. There is also no evidence that immigration exerts significant downward pressure on the unskilled wage. Copyright © 2004 Economic Society of Australia..

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Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 80 (2004)
Issue (Month): 248 (03)
Pages: 49-57
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Handle: RePEc:bla:ecorec:v:80:y:2004:i:248:p:49-57

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  1. Asadul Islam & Dietrich K. Fausten, 2007. "Skilled Immigration and Wages in Australia," Monash Economics Working Papers 36/07, Monash University, Department of Economics. [Downloadable!]
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  2. Richard B. Freeman, 2006. "Learning from Other Economies: The Unique Institutional and Policy Experiments Down Under," NBER Working Papers 12116, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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