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The Impact of Immigration on the Wage Differential in Australia

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  • Hsiao‐Chuan Chang

Abstract

This paper investigates the impact of immigration on the wage differential between skilled and unskilled labour using simulation analysis from a dynamic intertemporal general equilibrium model. The results show that immigration cannot explain variations of the wage differential in Australia during the past 10 years. In most of the years investigated, immigration only explains a small part of the change in the wage differential. There is also no evidence that immigration exerts significant downward pressure on the unskilled wage.

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  • 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, March.
    • Handle: RePEc:bla:ecorec:v:80:y:2004:i:248:p:49-57
    DOI: 10.1111/j.1475-4932.2004.00124.x
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    References listed on IDEAS

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    1. Pope, David & Withers, Glenn, 1993. "Do Migrants Rob Jobs? Lessons of Australian History, 1861–1991," The Journal of Economic History, Cambridge University Press, vol. 53(4), pages 719-742, December.
    2. Borjas, George J & Freeman, Richard B & Katz, Lawrence, 1996. "Searching for the Effect of Immigration on the Labor Market," American Economic Review, American Economic Association, vol. 86(2), pages 246-251, May.
    3. Borjas, George J. & Freeman, Richard B. (ed.), 1992. "Immigration and the Work Force," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226066332, March.
    4. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
    5. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760, Elsevier.
    6. James Heckman & Lance Lochner & Christopher Taber, 1998. "Explaining Rising Wage Inequality: Explanations With A Dynamic General Equilibrium Model of Labor Earnings With Heterogeneous Agents," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 1-58, January.
    7. Kristin F. Butcher & David Card, 1991. "Immigration and Wages: Evidence From the 1980s," Working Papers 661, Princeton University, Department of Economics, Industrial Relations Section..
    8. Butcher, Kristin F & Card, David, 1991. "Immigration and Wages: Evidence from the 1980's," American Economic Review, American Economic Association, vol. 81(2), pages 292-296, May.
    9. Kristin Butcher & David Card, 1991. "Immigration and Wages: Evidence From the 1980's," Working Papers 661, Princeton University, Department of Economics, Industrial Relations Section..
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    Cited by:

    1. Richard B. Freeman, 2006. "Learning from Other Economies: The Unique Institutional and Policy Experiments Down Under," The Economic Record, The Economic Society of Australia, vol. 82(257), pages 195-206, June.
    2. ., 2012. "Migration impact assessment: a state of the art," Chapters, in: Peter Nijkamp & Jacques Poot & Mediha Sahin (ed.), Migration Impact Assessment, chapter 1, pages 3-62, Edward Elgar Publishing.
    3. Jiong Tu, 2007. "The Impact of Immigration on the Labour Market Outcomes of Native-born Canadians," Social and Economic Dimensions of an Aging Population Research Papers 216, McMaster University.
    4. 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.
    5. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    6. 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.
    7. Jaai Parasnis, 2010. "Estimating The Relationship Between Immigrant And Native Workers In Australia: A Production Theory Approach," Australian Economic Papers, Wiley Blackwell, vol. 49(1), pages 73-85, March.

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