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Do Migrants succeed in the Australian Labour Market? Furher Evidence on Job Quality

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  • Mahuteau, Stephane
  • Junankar, Pramod

Abstract

While the Coalition Government was in power in Australia from 1996 to 2007, new immigrants have had to face tougher selection criteria and increased financial pressure. Most studies so far have overlooked the issue of the quality of the jobs obtained by new immigrants to Australia and whether the policy change has contributed to improve or worsen job quality among immigrants and their ability to move upward. Job quality is thought to be related to the channels of information used by immigrants in their job search. Some studies suggest that jobs found via networks of same origin migrants are of lower quality. The aim of this paper is twofold. First, we investigate the effect of time since settlement on the ability of migrants to better their labour market outcomes. Second, we quantify the relationships between job quality and migrants’ job search methods and test whether they were affected by the policy changes. Using the Longitudinal Survey of Immigrants to Australia (LSIA), we estimate the probabilities for immigrants to find “good jobs”, controlling for their initial employability upon arrival in Australia. We test several models involving various definitions of “good job”, from objective conditions, based on the nature and status of the occupation, to more subjective conditions based on job satisfaction. We show that the sole effect of being a second cohort migrant is beneficial for the probability to both find a job and a “good job” within the first year and half after settlement. After this time, cohort two migrants who still have not found a good job experience more difficulty to improve. Moreover, informal channels of information on job prospects have been slightly more efficient in enabling second cohort migrants to find good jobs, even though they still provide individuals with a disadvantage compared to formal channels.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8703.

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Date of creation: Sep 2007
Date of revision: Mar 2008
Handle: RePEc:pra:mprapa:8703

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Keywords: migrants; job quality; immigration policy; migrant networks; bivariate probit;

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References

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  1. Stark, Oded & Wang, You Qiang, 2002. "Migration dynamics," Economics Letters, Elsevier, Elsevier, vol. 76(2), pages 159-164, July.
  2. Deborah A. Cobb-Clark, 2003. "Public policy and the labor market adjustment of new immigrants to Australia," Journal of Population Economics, Springer, Springer, vol. 16(4), pages 655-681, November.
  3. Barry R. Chiswick & Yew Liang Lee & Paul W. Miller, 2002. "Longitudinal Analysis of Immigrant Occupational Mobility: A Test of the Immigrant Assimilation Hypothesis," Economics Discussion / Working Papers, The University of Western Australia, Department of Economics 02-08, The University of Western Australia, Department of Economics.
  4. Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Occupational Mobility of Ethnic Migrants," IZA Discussion Papers 58, Institute for the Study of Labor (IZA).
  5. P.N. (Raja) Junankar & Stephane Mahuteau, 2005. "Do Migrants Get Good Jobs? New Migrant Settlement in Australia," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 81(s1), pages S34-S46, 08.
  6. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
  7. Yamauchi, Futoshi & Tanabe, Sakiko, 2003. "Nonmarket networks among migrants," FCND discussion papers, International Food Policy Research Institute (IFPRI) 169, International Food Policy Research Institute (IFPRI).
  8. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 118(2), pages 549-599, May.
  9. Simon, Curtis J & Warner, John T, 1992. "Matchmaker, Matchmaker: The Effect of Old Boy Networks on Job Match Quality, Earnings, and Tenure," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 10(3), pages 306-30, July.
  10. Cobb-Clark, Deborah A, 2000. "Do Selection Criteria Make a Difference? Visa Category and the Labour Market Status of Immigrants to Australia," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 76(232), pages 15-31, March.
  11. Chiswick, Barry R. & Lee, Yew Liang & Miller, Paul W., 2002. "The Determinants of the Geographic Concentration among Immigrants: Application to Australia," IZA Discussion Papers 462, Institute for the Study of Labor (IZA).
  12. Linda Datcher Loury, 2004. "Some Job Contacts are More Equal Than Others: Earnings and Job Information Networks," Discussion Papers Series, Department of Economics, Tufts University, Department of Economics, Tufts University 0404, Department of Economics, Tufts University.
  13. Harriet Orcutt Duleep & Mark C. Regets, 1996. "Earnings Convergence: Does It Matter Where Immigrants Come From or Why?," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 29(s1), pages 130-34, April.
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Cited by:
  1. Simón, Hipólito & Ramos, Raul & Sanromá, Esteban, 2011. "Occupational Mobility of Immigrants in a Low Skilled Economy: The Spanish Case," IZA Discussion Papers 5581, Institute for the Study of Labor (IZA).
  2. Elena Vidal-Coso & Pau Miret-Gamundi, 2014. "The labour trajectories of immigrant women in Spain: Are there signs of upward social mobility?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 31(13), pages 337-380, August.

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