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Do Migrants Get Good Jobs? New Migrant Settlement in Australia

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Author Info

  • Junankar, Pramod N. (Raja)

    ()
    (University of New South Wales)

  • Mahuteau, Stéphane

    ()
    (NILS, Flinders University)

Abstract

This paper investigates the ease with which recent immigrants to Australia from different countries and with different visa categories enter employment at an appropriate level to their prior education and experience in the source country. Unlike most of the earlier research in this field that studied the labour market status of migrants (probabilities of employment, or unemployment, or participation, or wage equation) this paper focuses on the quality of job that the migrant obtains on arrival in Australia. We provide alternative definitions of what is a good job in terms of objective and subjective criteria. The paper uses two sets of the Longitudinal Survey of Immigrants to Australia data: the first cohort that arrived in 1993-95 and the second cohort that arrived in 1999-2000. In particular we would study how changes in social security legislation in 1997, (two year waiting period for eligibility for benefits) affected the quality of job held by new migrants. In comparing the behaviour of migrants in the labour market with and without access to social security benefits we would study whether migrants are more likely to accept bad jobs after the legislative changes. The paper uses bivariate probit models to estimate the probabilities of holding a good job in terms of the usual human capital and demographic variables (including the visa category for entry into Australia). Our results suggest that the policy change had a positive impact on the probability to find a job but a negative impact to hold a good job.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1434.

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Length: 24 pages
Date of creation: Dec 2004
Date of revision:
Publication status: published in: Economic Record, 2005, 81 (s1), S34-S46
Handle: RePEc:iza:izadps:dp1434

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Keywords: immigrants; good jobs; bivariate probit; job satisfaction; immigrant policies; labour market outcomes;

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References

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  1. Boozer, Michael A., 1997. "Econometric Analysis of Panel Data Badi H. Baltagi Wiley, 1995," Econometric Theory, Cambridge University Press, vol. 13(05), pages 747-754, October.
  2. Deborah Cobb-Clark, 2001. "The Longitudinal Survey of Immigrants to Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 34(4), pages 467-477.
  3. Denise J. Doiron & W. Craig Riddell, 1994. "The Impact of Unionization on Male-Female Earnings Differences in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 29(2), pages 504-534.
  4. Hwang, Hae-shin & Mortensen, Dale T & Reed, W Robert, 1998. "Hedonic Wages and Labor Market Search," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 815-47, October.
  5. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  6. Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, vol. 50(3), pages 761-64, May.
  7. Deborah A. Cobb-Clark, 2003. "Public policy and the labor market adjustment of new immigrants to Australia," Journal of Population Economics, Springer, vol. 16(4), pages 655-681, November.
  8. Foster L & Marshall, A & Williams LS, 1991. "Discrimination against immigrant workers in Australia," ILO Working Papers 284418, International Labour Organization.
  9. Blau, David M, 1991. "Search for Nonwage Job Characteristics: A Test of the Reservation Wage Hypothesis," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 186-205, April.
  10. Acemoglu, Daron, 2001. "Good Jobs versus Bad Jobs," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 1-21, January.
  11. Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318 Elsevier.
  12. 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.
  13. P. N. Junankar & Satya Paul & Wahida Yasmeen, 2010. "Are Asian Migrants Discriminated Against In The Labor Market? A Case Study Of Australia," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 55(04), pages 619-646.
  14. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760 Elsevier.
  15. George A. Akerlof & Andrew K. Rose & Janet L. Yellen, 1988. "Job Switching and Job Satisfaction in the U.S. Labor Market," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(2), pages 495-594.
  16. P.N.(Raja) Junankar & David Pope & Glenn Withers, 1998. "Immigration and the Australian Macroeconomy: Perspective and Prospective," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 31(4), pages 435-444.
  17. repec:iza:izadps:dp1167 is not listed on IDEAS
  18. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
  19. Snower, Dennis J., 1994. "The Low-Skill, Bad-Job Trap," CEPR Discussion Papers 999, C.E.P.R. Discussion Papers.
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Citations

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Cited by:
  1. Lindley, Joanne, 2009. "The over-education of UK immigrants and minority ethnic groups: Evidence from the Labour Force Survey," Economics of Education Review, Elsevier, vol. 28(1), pages 80-89, February.
  2. Matloob Piracha & Massimiliano Tani & Florin Vadean, 2010. "Immigrant Over- and Under-education: The Role of Home Country Labour Market Experience," CEIS Research Paper 175, Tor Vergata University, CEIS, revised 09 Dec 2010.
  3. Weiping Kostenko & Mark Harris & Xueyan Zhao, 2012. "Occupational transition and country-of-origin effects in the early stage occupational assimilation of immigrants: some evidence from Australia," Applied Economics, Taylor & Francis Journals, vol. 44(31), pages 4019-4035, November.
  4. Denise Doiron & Rochelle Guttmann, 2009. "Wealth Distributions of Migrant and Australian-born Households," The Economic Record, The Economic Society of Australia, vol. 85(268), pages 32-45, 03.
  5. Prem Jung Thapa & Tue Gørgens, 2006. "A Duration Analysis of the Time Taken to Find the First Job for Newly Arrived Migrants in Australia," CEPR Discussion Papers 527, Centre for Economic Policy Research, Research School of Economics, Australian National University.

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