The Impact of Immigration on Native Workers in Australia
Immigration leads to a change in the supply of workers across skill groups. The resulting impact on employment and earnings of native workers is estimated using an innovative approach developed by Borjas (2003). The approach takes into account the skill differentials in the labour force and defines skill groups of workers in terms of their education and work experience. We find that an increase in the proportion of immigrants has a significant positive effect on labour market outcomes for native workers. This finding challenges widely held perceptions that immigration erodes labour market outcomes for native workers.
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