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The Impacts of Immigration on Earnings and Employment: Accounting for Effective Immigrant Work Experience

Author

Listed:
  • Michael Tse

    (The University of Auckland)

  • Sholeh Maani

    (The University of Auckland)

Abstract

A large segment of New Zealand’s population is made up of foreign-born individuals. Despite the significant role that foreign-born individuals play in New Zealand society, little research has been done to address the impact of immigration on the labour market. In this paper we re-examine the impact of immigration in New Zealand using a panel of individual-level New Zealand Income Survey data and the national level methodology. We extend the model to include regional effects, and we incorporate measures of effective immigrant work experience, which reflect the values placed on immigrants’ human capital (work experience) in the host country. We find that immigration has little impact on earnings and employment hours. The results further confirm that the effective-experience measure improves the precision of the immigration impact estimates.

Suggested Citation

  • Michael Tse & Sholeh Maani, 2017. "The Impacts of Immigration on Earnings and Employment: Accounting for Effective Immigrant Work Experience," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 20(1), pages 85-111.
    • Handle: RePEc:ozl:journl:v:20:y:2017:i:1:p:85-111
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    Citations

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    Cited by:

    1. Omoniyi B Alimi & David C Maré & Jacques Poot, 2020. "The effects of immigration and skills on urban income inequality in New Zealand: two decomposition approaches," RF Berlin - CReAM Discussion Paper Series 2023, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).

    More about this item

    Keywords

    Immigrants; Earnings effects; Employment effects; Regions; Effective work experience;
    All these keywords.

    JEL classification:

    • 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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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