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Does a change in immigration affect the unemployment rate in host countries? Evidence from Australia

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  • Mostafa E. AboElsoud
  • Anas AlQudah
  • Eman Elish

Abstract

This study examines and evaluates the dynamic causality relationship between immigration, unemployment, wages and GDP per capita in host countries with a focus on Australia. Previous research has indicated that the economic impact of immigration is significant; nonetheless, its effect on the labour market being positive or negative is inconclusive. This study uses a Vector Error Correction Model (VECM) to examine the dynamic short- and long-run nexus between these variables in Australia over the period 1980–2016. The paper provides clear evidence to policy makers on the positive spillover effect of immigration policies developed by the Australian government.

Suggested Citation

  • Mostafa E. AboElsoud & Anas AlQudah & Eman Elish, 2020. "Does a change in immigration affect the unemployment rate in host countries? Evidence from Australia," Journal of Applied Economics, Taylor & Francis Journals, vol. 23(1), pages 21-43, January.
  • Handle: RePEc:taf:recsxx:v:23:y:2020:i:1:p:21-43
    DOI: 10.1080/15140326.2019.1684740
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    Cited by:

    1. Michael Clemens, 2021. "The Fiscal Effect of Immigration: Reducing Bias in Influential Estimates," CESifo Working Paper Series 9464, CESifo.
    2. Wu, Hanjun & Hong Tsui, Kan Wai & Ngo, Thanh & Lin, Yi-Hsin, 2023. "Airport subsidies impact on wellbeing of smaller regions: A systemic examination in New Zealand," Transport Policy, Elsevier, vol. 130(C), pages 26-36.

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