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Skilled Immigration and Wages in Australia

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  • Islam, Asadul
  • Fausten, Dietrich

Abstract

This paper investigates the impact of the relative growth of skilled migration on the structure of Australian wages. Unlike conventional approaches, the present study uses macro data to examine the response of wages to immigration flows. We use instrumental variable (IV) techniques to deal with the potential endogeneity of immigration. Results from alternative estimation strategies support the many prevailing empirical findings. There is no robust evidence that a relative increase in skilled immigrants exerts discernible adverse consequences on the wage structure in Australia.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 7138.

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Date of creation: 14 Feb 2008
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Handle: RePEc:pra:mprapa:7138

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Keywords: Immigration; wage; endogeneity; instrumental variable;

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