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Skilled Immigration and Wages in Australia

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  • ASADUL ISLAM
  • DIETRICH K. FAUSTEN

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 techniques to control for the potential endogeneity of immigration. The results, using alternative estimation strategies, are consistent with the dominant findings from existing empirical work. There is no robust evidence that a relative increase in skilled immigrants exerts any discernible adverse consequences on the wage structure in Australia.

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  • 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.
    • Handle: RePEc:bla:ecorec:v:84:y:2008:i:s1:p:s66-s82
    DOI: 10.1111/j.1475-4932.2008.00485.x
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    1. 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.
    2. 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.
    3. Jeroen van der Waal, 2012. "Post-industrialisation, Immigration and Unemployment: How and Why the Impact of Immigration on Unemployment Differs between Dutch Cities," Urban Studies, Urban Studies Journal Limited, vol. 49(8), pages 1711-1724, June.

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    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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