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Welfare Policy and Labour Supply of Immigrants in Australia

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Author Info

  • Vincent Law

    ()
    (The Australian National University (ANU) - Crawford School of Public Policy)

Abstract

This paper investigates the impact of social security payments on the labour supply of recent immigrants to Australia after the policy change. This research uses the first wave of two sets of Longitudinal Survey of Immigrants to Australia (LSIA) data as treatment group and Survey of Income and Housing (SIH) as control group to analyse the short-term immigrant labour market outcomes before and after the policy change. Employing difference-in-differences estimators and propensity score matching procedures, this study suggests that welfare reform caused a substantial increase in the employment of immigrants. This might imply that restricted access to welfare produced a higher proportion of new immigrants who more actively looked for jobs.

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File URL: http://www.crawford.anu.edu.au/pdf/crwf_ssrn/crwfrp_1109.pdf
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Bibliographic Info

Paper provided by Crawford School of Public Policy, The Australian National University in its series Crawford School Research Papers with number 1109.

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Length: 33 pages
Date of creation: Jun 2011
Date of revision:
Handle: RePEc:een:crwfrp:1109

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Postal: Crawford Building, Lennox Crossing, Building #132, Canberra ACT 0200
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
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Web page: https://crawford.anu.edu.au/research/crwf_ssrn/
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Related research

Keywords: social security payments; labour supply; Australian immigrants; employment of immigrants;

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References

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  1. Paul Bingley & Ian Walker, 1997. "Household unemployment and the labour supply of married women," IFS Working Papers W97/01, Institute for Fiscal Studies.
  2. Mahuteau, Stéphane & Junankar, Pramod N. (Raja), 2008. "Do Migrants Get Good Jobs in Australia? The Role of Ethnic Networks in Job Search," IZA Discussion Papers 3489, Institute for the Study of Labor (IZA).
  3. Denise J. Doiron, 2004. "Welfare Reform and the Labour Supply of Lone Parents in Australia: A Natural Experiment Approach," The Economic Record, The Economic Society of Australia, vol. 80(249), pages 157-176, 06.
  4. Ashenfelter, Orley & Ashmore, David & Deschenes, Olivier, 2000. "Do Unemployment Insurance Recipients Actively Seek Work? Evidence From Randomized Trials in Four U.S. States," IZA Discussion Papers 128, Institute for the Study of Labor (IZA).
  5. Schnabel, Reinhold & Gürtzgen, Nicole & Boeters, Stefan, 2003. "Reforming Social Welfare in Germany: An Applied General Equilibrium Analysis," ZEW Discussion Papers 03-70, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. Beggs, John J & Chapman, Bruce J, 1988. "Immigrant Wage Adjustment in Australia: Cross Section and Time-Series Estimates," The Economic Record, The Economic Society of Australia, vol. 64(186), pages 161-67, September.
  7. Miller, Paul W, 1986. "Immigrant Unemployment in the First Year of Australian Labour Market Activity," The Economic Record, The Economic Society of Australia, vol. 62(176), pages 82-87, March.
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