IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v96y2020is1p50-77.html
   My bibliography  Save this article

Australia's Immigration Selection System and Labour Market Outcomes in a Family Context: Evidence from Administrative Data

Author

Listed:
  • Cahit Guven
  • Lan Anh Tong
  • Mutlu Yuksel

Abstract

This paper examines the efficacy of the Australian points system in a family context among working‐age permanent resident immigrants who arrived between 2000 and 2011 when there was a major focus on skills selection. Sixty‐seven per cent of these immigrants were granted a skilled visa while 25 per cent hold a spousal visa (spouses of Australian citizens). More than half of the skilled visa recipients are the spouses of the primary applicants. Primary applicants among skilled visa holders are assessed for their skills in line with the Australian points system but secondary applicants, such as spouses, among skilled visa holders and spousal visa holders are not subject to any skills assessment before becoming permanent residents. We study differences in economic outcomes by permanent visa types and the role of points system factors in explaining these differences using the Personal Income Tax and Migrants Integrated Dataset and the Australian Census Longitudinal Dataset. We find that primary skilled visa holders earn at least 26–28 per cent more than spousal visa holders, and this is similar for both genders. However, spouses of primary skilled visa holders earn 13–18 per cent more than spousal visa holders. This difference is higher among females than males. Occupation differences can account for nearly half of the differences in income and can entirely capture the role of education and English proficiency. Primary skilled immigrants and their spouses have higher rates of labour force participation and employment than spousal visa holders, starting in the first year of arrival, and the gap is much higher for primary skilled visa holders, but these differences do not disappear quickly.

Suggested Citation

  • Cahit Guven & Lan Anh Tong & Mutlu Yuksel, 2020. "Australia's Immigration Selection System and Labour Market Outcomes in a Family Context: Evidence from Administrative Data," The Economic Record, The Economic Society of Australia, vol. 96(S1), pages 50-77, June.
  • Handle: RePEc:bla:ecorec:v:96:y:2020:i:s1:p:50-77
    DOI: 10.1111/1475-4932.12542
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1475-4932.12542
    Download Restriction: no

    File URL: https://libkey.io/10.1111/1475-4932.12542?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Andrew Clarke & Ana Ferrer & Mikal Skuterud, 2019. "A Comparative Analysis of the Labor Market Performance of University-Educated Immigrants in Australia, Canada, and the United States: Does Policy Matter?," Journal of Labor Economics, University of Chicago Press, vol. 37(S2), pages 443-490.
    2. Deborah A. Cobb‐Clark & Marie D. Connolly, 2001. "A Family Affair: The Labor Market Experience of Immigrant Spouses," Social Science Quarterly, Southwestern Social Science Association, vol. 82(4), pages 796-811, December.
    3. Arthur Sweetman & Casey Warman, 2013. "Canada's Immigration Selection System and Labour Market Outcomes," Canadian Public Policy, University of Toronto Press, vol. 39(s1), pages 141-160, May.
    4. Constant, Amelie F. & Zimmermann, Klaus F., 2005. "Legal Status at Entry, Economic Performance, and Self-employment Proclivity: A Bi-national Study of Immigrants," IZA Discussion Papers 1910, Institute of Labor Economics (IZA).
    5. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-773, October.
    6. Basilio, Leilanie & Bauer, Thomas K. & Sinning, Mathias, 2009. "Analyzing the labor market activity of immigrant families in Germany," Labour Economics, Elsevier, vol. 16(5), pages 510-520, October.
    7. Kalena E. Cortes, 2004. "Are Refugees Different from Economic Immigrants? Some Empirical Evidence on the Heterogeneity of Immigrant Groups in the United States," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 465-480, May.
    8. Deborah A. Cobb‐Clark, 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, vol. 76(232), pages 15-31, March.
    9. Deborah Cobb-Clark & Marie Connolly & Christopher Worswick, 2005. "Post-migration investments in education and job search: a family perspective," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(4), pages 663-690, November.
    10. Alicia Adsera & Barry Chiswick, 2007. "Are there gender and country of origin differences in immigrant labor market outcomes across European destinations?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(3), pages 495-526, July.
    11. Cobb-Clark, Deborah & Crossley, Thomas F., 2004. "Revisiting the family investment hypothesis," Labour Economics, Elsevier, vol. 11(3), pages 373-393, June.
    12. Abdurrahman Aydemir, 2011. "Immigrant selection and short-term labor market outcomes by visa category," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(2), pages 451-475, April.
    13. Cortes, Kalena E., 2004. "Are Refugees Different from Economic Immigrants? Some Empirical Evidence on the Heterogeneity of Immigrant Groups in the United States," IZA Discussion Papers 1063, Institute of Labor Economics (IZA).
    14. Chiswick, Barry R. & Taengnoi, Sarinda, 2007. "Occupational Choice of High Skilled Immigrants in the United States," IZA Discussion Papers 2969, Institute of Labor Economics (IZA).
    15. Sandell, Steven H, 1977. "Women and the Economics of Family Migration," The Review of Economics and Statistics, MIT Press, vol. 59(4), pages 406-414, November.
    16. P.W. Miller & L. Neo, 1997. "Immigrant unemployment: The Australian experience," Economics Discussion / Working Papers 97-04, The University of Western Australia, Department of Economics.
    17. Arnold de Silva, 1997. "Earnings of Immigrant Classes in the Early 1980s in Canada: A Re-examination," Canadian Public Policy, University of Toronto Press, vol. 23(2), pages 179-202, June.
    18. Barry R. Chiswick & Yew Liang Lee & Paul W. Miller, 2005. "Immigrant Earnings: A Longitudinal Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(4), pages 485-503, December.
    19. Baker, Michael & Benjamin, Dwayne, 1997. "The Role of the Family in Immigrants' Labor-Market Activity: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 87(4), pages 705-727, September.
    20. Charles M. Beach & Christopher Worswick, 1993. "Is There a Double-Negative Effect on the Earnings of Immigrant Women?," Canadian Public Policy, University of Toronto Press, vol. 19(1), pages 36-53, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David C. Ribar, 2013. "Immigrants’ time use: a survey of methods and evidence," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 20, pages 373-392, Edward Elgar Publishing.
    2. Marc-André Luik & Henrik Emilsson & Pieter Bevelander, 2018. "The male immigrant–native employment gap in Sweden: migrant admission categories and human capital," Journal of Population Research, Springer, vol. 35(4), pages 363-398, December.
    3. Zaiceva, Anzelika, 2010. "East-West migration and gender: Is there a differential effect for migrant women?," Labour Economics, Elsevier, vol. 17(2), pages 443-454, April.
    4. Stuart Campbell, 2014. "Does it matter why immigrants came here? Original motives, the labour market, and national identity in the UK," DoQSS Working Papers 14-14, Quantitative Social Science - UCL Social Research Institute, University College London.
    5. Basilio, Leilanie & Bauer, Thomas K. & Sinning, Mathias, 2009. "Analyzing the labor market activity of immigrant families in Germany," Labour Economics, Elsevier, vol. 16(5), pages 510-520, October.
    6. José-Ignacio Antón & Rafael Muñoz de Bustillo & Miguel Carrera, 2012. "Raining stones? Female immigrants in the Spanish labour market," Estudios de Economia, University of Chile, Department of Economics, vol. 39(1 Year 20), pages 53-86, June.
    7. Zhiming Cheng & Ben Zhe Wang & Lucy Taksa, 0. "Labour Force Participation and Employment of Humanitarian Migrants: Evidence from the Building a New Life in Australia Longitudinal Data," Journal of Business Ethics, Springer, vol. 0, pages 1-24.
    8. Abdurrahman Aydemir, 2013. "Skill-based immigrant selection and labor market outcomes by visa category," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 23, pages 432-452, Edward Elgar Publishing.
    9. Lens, Dries & Marx, Ive & Vujic, Suncica, 2018. "Does Migration Motive Matter for Migrants' Employment Outcomes? The Case of Belgium," IZA Discussion Papers 11906, Institute of Labor Economics (IZA).
    10. Justin van de Ven & Sarah Voitchovsky, 2015. "Skilled migrants and labour market integration: how important is the selection process?," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-28, December.
    11. Battisti, Michele & Giesing, Yvonne & Laurentsyeva, Nadzeya, 2019. "Can job search assistance improve the labour market integration of refugees? Evidence from a field experiment," Labour Economics, Elsevier, vol. 61(C).
    12. Zhiming Cheng & Ben Zhe Wang & Lucy Taksa, 2021. "Labour Force Participation and Employment of Humanitarian Migrants: Evidence from the Building a New Life in Australia Longitudinal Data," Journal of Business Ethics, Springer, vol. 168(4), pages 697-720, February.
    13. Lemos, Sara, 2017. "Mind the gap: A detailed picture of the immigrant-native earnings gap in the UK using longitudinal data between 1978 and 2006," Regional Science and Urban Economics, Elsevier, vol. 63(C), pages 57-75.
    14. Giesing, Yvonne & Battisti, Michele & Laurentsyeva, Nadzeya, 2018. "The Labour Market Integration of Refugees in Germany: Evidence from a Field Experiment," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181522, Verein für Socialpolitik / German Economic Association.
    15. Isabel Ruiz & Carlos Vargas-Silva, 2018. "Differences in labour market outcomes between natives, refugees and other migrants in the UK," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 855-885.
    16. Adserà, Alícia & Ferrer, Ana, 2016. "Occupational skills and labour market progression of married immigrant women in Canada," Labour Economics, Elsevier, vol. 39(C), pages 88-98.
    17. David A. Green & Christopher Worswick, 2017. "Canadian economics research on immigration through the lens of theories of justice," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1262-1303, December.
    18. Sarit Cohen-Goldner & Chemi Gotlibovski & Nava Kahana, 2009. "A Reevaluation Of the Role Of Family In Immigrants' Labor Market Activity;Evidence From a Comparison Of Single and Married Immigrants," Working Papers 2009-13, Bar-Ilan University, Department of Economics.
    19. Hamori, Szilvia, 2009. "Employment convergence of immigrants in the EU: Differences across genders, regions of origin and destination," HWWI Research Papers 3-20, Hamburg Institute of International Economics (HWWI).
    20. Barry R. Chiswick & Paul W. Miller, 2015. "Negative and Positive Assimilation by Prices and by Quantities," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(1), pages 5-28.

    More about this item

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:96:y:2020:i:s1:p:50-77. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/esausea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.