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The Impact of Immigration on Native Workers in Australia

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Abstract

Immigration leads to a change in the supply of workers across skill groups. The resulting impact on employment and earnings of native workers is estimated using an innovative approach developed by Borjas (2003). The approach takes into account the skill differentials in the labour force and defines skill groups of workers in terms of their education and work experience. We find that an increase in the proportion of immigrants has a significant positive effect on labour market outcomes for native workers. This finding challenges widely held perceptions that immigration erodes labour market outcomes for native workers.

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  • Jaai Parasnis & Dietrich Fausten & Russell Smyth, 2006. "The Impact of Immigration on Native Workers in Australia," Monash Economics Working Papers archive-40, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:archive-40
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    Cited by:

    1. Asadul Islam & Dietrich K. Fausten, 2008. "Skilled Immigration and Wages in Australia," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 66-82, September.
    2. Zimmermann, Klaus F. & Kahanec, Martin, 2008. "Migration, the Quality of the Labour Force and Economic Inequality," CEPR Discussion Papers 6899, C.E.P.R. Discussion Papers.
    3. Asadul Islam, 2009. "The substitutability of labor between immigrants and natives in the Canadian labor market: circa 1995," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(1), pages 199-217, January.
    4. Kahanec, Martin & Zimmermann, Klaus F., 2008. "Migration in an Enlarged EU: A Challenging Solution?," IZA Discussion Papers 3913, Institute of Labor Economics (IZA).
    5. Kahanec, Martin & Zimmermann, Klaus F., 2008. "International Migration, Ethnicity and Economic Inequality," IZA Discussion Papers 3450, Institute of Labor Economics (IZA).
    6. Kifle, Temesgen, 2009. "The effect of immigration on the earnings of native-born workers: Evidence from Australia," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 350-356, March.
    7. Zimmermann, Klaus F. & Kahanec, Martin & Giulietti, Corrado & Guzi, Martin & Barrett, Alan & Maitre, Bertrand, 2012. "Study on Active Inclusion of Migrants," IZA Research Reports 43, Institute of Labor Economics (IZA).

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