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The Two-Step Australian Immigration Policy and its Impact on Immigrant Employment Outcomes

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  • Gregory, Bob

    () (Australian National University)

Abstract

Three decades ago most immigrants to Australia with work entitlements came as permanent settlers. Today the annual allocation of temporary visas, with work entitlements, outnumbers permanent settler visas by a ratio of three to one. The new environment, with so many temporary visa holders, has led to a two-step immigration policy whereby an increasing proportion of immigrants come first as a temporary immigrant, to work or study, and then seek to move to permanent status. Around one half of permanent visas are allocated on-shore to those who hold temporary visas with work rights. The labour market implications of this new two-step system are substantial. Immigrants from non-English speaking countries (NES), are affected most. In their early years in Australia, they have substantially reduced full-time employment and substantially increased part-time employment, usually while attending an education institution. Three years after arrival one third of NES immigrants are now employed part-time which, rather than unemployment, is becoming their principal pathway to full-time labour market integration. Surprisingly, little has changed for immigrants from English speaking countries (ES).

Suggested Citation

  • Gregory, Bob, 2014. "The Two-Step Australian Immigration Policy and its Impact on Immigrant Employment Outcomes," IZA Discussion Papers 8061, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp8061
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    Cited by:

    1. Clarke, Andrew & Skuterud, Mikal, 2014. "Immigrant Skill Selection and Utilization: A Comparative Analysis of Australia, Canada, and the United States," CLSSRN working papers clsrn_admin-2014-41, Vancouver School of Economics, revised 22 Sep 2014.
    2. Richard V. Burkhauser & Markus H. Hahn & Matthew Hall & Nicole Watson, 2016. "Australia Farewell: Predictors of Emigration in the 2000s," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 35(2), pages 197-215, April.
    3. Andrew Clarke & Mikal Skuterud, 2016. "A comparative analysis of immigrant skills and their utilization in Australia, Canada, and the USA," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(3), pages 849-882, July.

    More about this item

    Keywords

    immigrant part-time employment; fee paying foreign students; temporary employment visas; labour market integration; immigrants; employment;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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