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Where do immigrants settle? Assessing the role of immigration policies

Author

Listed:
  • Alan Duncan

    (Bankwest Curtin Economics Centre, Curtin University)

  • Mark N Harris

    (School of Economics and Finance, Curtin University)

  • Astghik Mavisakalyan

    (Bankwest Curtin Economic Centre, Curtin University)

  • Toan Nguyen

    (Bankwest Curtin Economic Centre, Curtin University)

Abstract

This paper compares immigration flows in response to changes in labour market conditions to provide an assessment of Australia’s selective immigration policies. We find employer sponsored immigration varied in line with changes in regional wages, with immigrants being drawn to states with greater wage grown. In contrast, evidence does not support this trend for points-based immigrants. We account for the endogeneity bias by exploiting differences in the impact of exogenous commodity price fluctuations on regional wages. A complimentary analysis of a points-based immigration policy reform in 2012 further highlights the role of employers in alleviating the apparent misallocation of points-based immigrants.

Suggested Citation

  • Alan Duncan & Mark N Harris & Astghik Mavisakalyan & Toan Nguyen, 2018. "Where do immigrants settle? Assessing the role of immigration policies," Bankwest Curtin Economics Centre Working Paper series WP1802, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.
  • Handle: RePEc:ozl:bcecwp:wp1802
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    File URL: http://bcec.edu.au/publications/where-do-immigrants-settle-assessing-the-role-of-immigrant-policies/
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    More about this item

    Keywords

    skilled immigration; location choice; immigration policy;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • 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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