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Immigrant Wage Adjustment in Australia: Cross Section and Time‐Series Estimates

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  • JOHN J. BEGGS
  • BRUCE J. CHAPMAN

Abstract

Cross‐sectional estimates of the comparative wage performance of natives and immigrants can be distorted if there are changes in labour market quality between immigrant cohorts. This question is investigated with a study of 1973 and 1981 cross‐sections of Australian migrants. We find that migrants from non‐English‐speaking countries entering Australia about 1965 perform significantly better between 1973 and 1981 than predicted from the 1973 cross‐section. Migrants from English‐speaking countries time‐series wage performance is consistent with the 1973 cross‐section prediction. The paper interprets the analytic importance of these results.

Suggested Citation

  • John J. Beggs & Bruce J. Chapman, 1988. "Immigrant Wage Adjustment in Australia: Cross Section and Time‐Series Estimates," The Economic Record, The Economic Society of Australia, vol. 64(3), pages 161-167, September.
    • Handle: RePEc:bla:ecorec:v:64:y:1988:i:3:p:161-167
    DOI: 10.1111/j.1475-4932.1988.tb02054.x
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    References listed on IDEAS

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    1. Paul W. Miller, 1986. "Immigrant Unemployment in the First Year of Australian Labour Market Activity," The Economic Record, The Economic Society of Australia, vol. 62(1), pages 82-87, March.
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    3. George J. Borjas, 2021. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 2, pages 3-29, World Scientific Publishing Co. Pte. Ltd..
    4. repec:bla:ecorec:v:62:y:1986:i:176:p:82-87 is not listed on IDEAS
    5. Paul W. Miller & Barry R. Chiswick, 1985. "Immigrant Generation and Income in Australia," The Economic Record, The Economic Society of Australia, vol. 61(2), pages 540-553, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. P.N. (Raja) Junankar & Stéphane Mahuteau, 2005. "Do Migrants Get Good Jobs? New Migrant Settlement in Australia," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages 34-46, August.
    2. Dex S., 1992. "Costs of discriminating against migrant workers : an international review," ILO Working Papers 992869403402676, International Labour Organization.
    3. repec:ilo:ilowps:286940 is not listed on IDEAS
    4. Silke Uebelmesser, 2006. "To Go or Not to Go: Emigration from Germany," German Economic Review, Verein für Socialpolitik, vol. 7(2), pages 211-231, May.
    5. Derek Hum & Wayne Simpson, 2002. "Analysis of the Performance of Immigrant Wages Using Panel Data," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 C2-1, International Conferences on Panel Data.
    6. Roger Wilkins, 2003. "Immigrant and Native-born Earnings Distributions in Australia: 1982-1996," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(1), pages 83-115, March.
    7. Prem J. Thapa, 2004. "On the risk of unemployment: a comparative assessment of the labour market success of migrants in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(2), pages 199-229, June.
    8. Jean Luc ERERO, 2022. "Personal income tax: Evidence from South Africa," Turkish Economic Review, EconSciences Journals, vol. 9(1), pages 15-36, March.
    9. James Ted Mcdonald & Christopher Worswick, 1999. "The Earnings of Immigrant Men in Australia: Assimilation, Cohort Effects, and Macroeconomic Conditions," The Economic Record, The Economic Society of Australia, vol. 75(1), pages 49-62, March.
    10. Xin Meng & Robert G. Gregory, 2005. "Intermarriage and the Economic Assimilation of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 135-176, January.
    11. Winkelmann, Rainer, 2000. "Immigration Policies and their Impact: The Case of New Zealand and Australia," IZA Discussion Papers 169, IZA Network @ LISER.
    12. Cathy Gong & Rebecca Cassells & Marcia Keegan, 2011. "Understanding Life Satisfaction and the Education Puzzle in Australia: A profile from HILDA Wave 9," NATSEM Working Paper Series 11/12, University of Canberra, National Centre for Social and Economic Modelling.
    13. Chiswick, Barry R. & Miller, Paul W., 2008. "Why is the payoff to schooling smaller for immigrants?," Labour Economics, Elsevier, vol. 15(6), pages 1317-1340, December.
    14. Jaai Parasnis & Dietrich Fausten & Roland Cheo, 2008. "Do Australian Qualifications Help? The Effect of Host Country Qualification on Migrant Participation and Unemployment," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 131-140, September.
    15. Donna L. Feir, 2016. "The long-term effects of forcible assimilation policy: The case of Indian boarding schools," Canadian Journal of Economics, Canadian Economics Association, vol. 49(2), pages 433-480, May.
    16. repec:bla:germec:v:7:y:2006:i::p:211-231 is not listed on IDEAS
    17. Brown, Richard P. C., 1997. "Estimating remittance functions for Pacific Island Migrants," World Development, Elsevier, vol. 25(4), pages 613-626, January.
    18. Mosfequs Salehin & Robert Breunig, 2012. "The immigrant wage gap and assimilation in Australia: the impact of unobserved heterogeneity," CEPR Discussion Papers 661, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    19. Prem Thapa, 2004. "On The Risk Of Unemployment: A Comparative Assessment of the Labour Market Success of Migrants in Australia," CEPR Discussion Papers 473, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    20. Daniel Parent & Christopher Worswick, 2004. "Immigrant Labour Market Performance and Skilled Immigrant Selection: The International Experience," CIRANO Project Reports 2004rp-07, CIRANO.
    21. Laurie Brown & Binod Nepal & Sarah Yu, 2012. "Supported accommodation options for people with disability: Investigating responses to the urban village concept," NATSEM Working Paper Series 12/16, University of Canberra, National Centre for Social and Economic Modelling.
    22. 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.
    23. Nguyen, Ha Trong & Zając, Tomasz & Tomaszewski, Wojtek & Mitrou, Francis, 2025. "Educational pathways and earnings trajectories of second-generation immigrants in Australia: New insights from linked census-administrative data," Economics of Education Review, Elsevier, vol. 109(C).

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