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Skilled Immigration and Wages in Australia

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Author Info
Islam, Asadul
Fausten, Dietrich

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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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Related research
Keywords: Immigration; wage; endogeneity; instrumental variable.;

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Find related papers by JEL classification:
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

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  2. Blomquist, Soren & Dahlberg, Matz, 1999. "Small Sample Properties of LIML and Jackknife IV Estimators: Experiments with Weak Instruments," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(1), pages 69-88, Jan.-Feb.. [Downloadable!]
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  4. Adriana D. Kugler & Robert M. Sauer, 2005. "Doctors without Borders? Relicensing Requirements and Negative Selection in the Market for Physicians," Journal of Labor Economics, University of Chicago Press, vol. 23(3), pages 437-466, July. [Downloadable!]
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  6. Kristin Butcher & David Card, 1991. "Immigration and Wages: Evidence From the 1980's," Working Papers 661, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  7. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-54, July. [Downloadable!] (restricted)
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  11. Clarke, Harry R & Ng, Yew-Kwang, 1993. "Immigration and Economic Welfare: Resource and Environmental Aspects," The Economic Record, The Economic Society of Australia, vol. 69(206), pages 259-73, September.
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  15. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March. [Downloadable!] (restricted)
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  16. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-60, September.
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  17. Asadul Islam, 2007. "Immigration Unemployment Relationship: The Evidence From Canada ," Australian Economic Papers, Blackwell Publishing, vol. 46(1), pages 52-66, 03. [Downloadable!] (restricted)
  18. Hsiao-Chuan Chang, 2004. "The Impact of Immigration on the Wage Differential in Australia," The Economic Record, The Economic Society of Australia, vol. 80(248), pages 49-57, 03. [Downloadable!] (restricted)
  19. Cobb-Clark, Deborah A., 2002. "Public Policy and the Labor Market Adjustment of New Immigrants to Australia," IZA Discussion Papers 620, Institute for the Study of Labor (IZA). [Downloadable!]
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  20. Jorgen Hansen & Magnus Lofstrom, 2003. "Immigrant Assimilation and Welfare Participation Do Immigrants Assimilate Into or Out of Welfare?," Journal of Human Resources, University of Wisconsin Press, vol. 38(1). [Downloadable!] (restricted)
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