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The Impact of Immigration on the Labour Market Outcomes of New Zealanders

Author

Listed:
  • David C Maré

    () (Motu Economic and Public Policy Research)

  • Steven Stillman

    () (Motu Economic and Public Policy Research)

Abstract

This paper uses data from the 1996, 2001 and 2006 New Zealand Census to examine how the supply of immigrants in particular skill-groups affects the employment and wages of the New Zealand-born and of earlier migrants. We first estimate simple CES production functions that allow for substitutability between workers from different skill-groups, but assume that, within skill-groups, migrants are perfect substitutes for non-migrants. We next estimate hierarchical CES production functions that allow for substitutability between immigrant and non-immigrant workers within skillgroups, but constrain the patterns of wage impacts on different factors in response to changing factor shares, and that natives and migrants are not substitutable across skill-groups. Then, we extend the previous literature by estimating a Generalised Leontief production function that allows for a less restrictive relationship between changes in factors shares and changes in wages within a particular level of the production function and for substitution and complementarity between immigrant and nonimmigrant workers both between and across skill-groups. Regardless of the model being estimated, we find little evidence that immigrants negatively affect either the wages or employment opportunities of the average New Zealand-born worker. However, we find some evidence that increases in the number of high-skilled recent migrants have small negative impacts on the wages of high-skilled New Zealand-born workers, which are offset by small positive impacts on the wages of medium-skilled New Zealanders.

Suggested Citation

  • David C Maré & Steven Stillman, 2009. "The Impact of Immigration on the Labour Market Outcomes of New Zealanders," Working Papers 09_11, Motu Economic and Public Policy Research.
  • Handle: RePEc:mtu:wpaper:09_11
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    File URL: http://motu-www.motu.org.nz/wpapers/09_11.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. ., 2012. "Migration impact assessment: a state of the art," Chapters,in: Migration Impact Assessment, chapter 1, pages 3-62 Edward Elgar Publishing.
    2. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    3. Steven Stillman & David C. Maré, 2008. "Housing Markets and Migration: Evidence from New Zealand," Working Papers 08_06, Motu Economic and Public Policy Research.
    4. Richard Fabling & Steven Stillman & David C. Maré, 2011. "Immigration and Innovation," Working Papers 11_05, Motu Economic and Public Policy Research.
    5. S. Longhi & P. Nijkamp & J. Poot, 2010. "Joint impacts of immigration on wages and employment: review and meta-analysis," Journal of Geographical Systems, Springer, pages 355-387.
    6. Christian Dustmann & Albrecht Glitz & Tommaso Frattini, 2008. "The labour market impact of immigration," Oxford Review of Economic Policy, Oxford University Press, pages 478-495.
    7. Richard Fabling & Steven Stillman & David C. Maré, 2011. "Immigration and Innovation," Working Papers 11_05, Motu Economic and Public Policy Research.

    More about this item

    Keywords

    Immigration; Wage Impacts; New Zealand; Labour Market Areas;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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