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Skilled Immigration and Wages in Australia

  • Islam, Asadul
  • Fausten, Dietrich

This paper investigates the impact of the relative growth of skilled migration on the structure of Australian wages. Unlike conventional approaches, the present study uses macro data to examine the response of wages to immigration flows. We use instrumental variable (IV) techniques to deal with the potential endogeneity of immigration. Results from alternative estimation strategies support the many prevailing empirical findings. There is no robust evidence that a relative increase in skilled immigrants exerts discernible adverse consequences on the wage structure in Australia.

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File URL: https://mpra.ub.uni-muenchen.de/7138/1/MPRA_paper_7138.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 7138.

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Date of creation: 14 Feb 2008
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Handle: RePEc:pra:mprapa:7138
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  1. Blomquist, Soren & Dahlberg, Matz, 1999. "Small Sample Properties of LIML and Jackknife IV Estimators: Experiments with Weak Instruments," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(1), pages 69-88, Jan.-Feb..
  2. Grossman, Jean Baldwin, 1982. "The Substitutability of Natives and Immigrants in Production," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 596-603, November.
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  7. Joshua D. Angrist & Guido W. Imbens, 1995. "Identification and Estimation of Local Average Treatment Effects," NBER Technical Working Papers 0118, National Bureau of Economic Research, Inc.
  8. Douglas Staiger & James H. Stock, 1994. "Instrumental Variables Regression with Weak Instruments," NBER Technical Working Papers 0151, National Bureau of Economic Research, Inc.
  9. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
  10. Withers, Glenn & Pope, David, 1985. "Immigration and Unemployment," The Economic Record, The Economic Society of Australia, vol. 61(173), pages 554-63, June.
  11. Baker, Michael & Benjamin, Dwayne, 1994. "The Performance of Immigrants in the Canadian Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 369-405, July.
  12. Hatton, Timothy J & Massimiliano Tani, 2003. "Immigration and Inter-Regional Mobility in the UK, 1982-2000," Royal Economic Society Annual Conference 2003 101, Royal Economic Society.
  13. George J. Borjas, 1994. "Assimilation and Changes in Cohort Quality Revisited: What Happened to Immigrant Earnings in the 1980s?," NBER Working Papers 4866, National Bureau of Economic Research, Inc.
  14. Joshua D. Angrist & Adriana D. Kugler, 2001. "Protective or counter-productive? Labor market institutions and the effect of immigration on EU natives," Economics Working Papers 587, Department of Economics and Business, Universitat Pompeu Fabra.
  15. Dustmann, Christian & Fabbri, Francesca, 2000. "Language Proficiency and Labour Market Performance of Immigrants in the UK," CEPR Discussion Papers 2487, C.E.P.R. Discussion Papers.
  16. Christian Dustmann & Francesca Fabbri & Ian Preston, 2005. "The Impact of Immigration on the British Labour Market," Economic Journal, Royal Economic Society, vol. 115(507), pages F324-F341, November.
  17. Barry R. Chiswick & Paul W. Miller, 2008. "Occupational Attainment And Immigrant Economic Progress In Australia," Economics Discussion / Working Papers 08-03, The University of Western Australia, Department of Economics.
  18. Addison, Thomas & Worswick, Christopher, 2002. "The Impact of Immigration on the Earnings of Natives: Evidence from Australian Micro Data," The Economic Record, The Economic Society of Australia, vol. 78(240), pages 68-78, March.
  19. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-54, July.
  20. David Card, 2000. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," NBER Working Papers 7769, National Bureau of Economic Research, Inc.
  21. Cobb-Clark, Deborah A., 2002. "Public Policy and the Labor Market Adjustment of New Immigrants to Australia," IZA Discussion Papers 620, Institute for the Study of Labor (IZA).
  22. Angrist, J D & Imbens, G W & Krueger, A B, 1999. "Jackknife Instrumental Variables Estimation," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(1), pages 57-67, Jan.-Feb..
  23. J.D. Angrist & Guido W. Imbens & D.B. Rubin, 1993. "Identification of Causal Effects Using Instrumental Variables," NBER Technical Working Papers 0136, National Bureau of Economic Research, Inc.
  24. Adriana D. Kugler & Robert M. Sauer, 2005. "Doctors without Borders? Relicensing Requirements and Negative Selection in the Market for Physicians," Journal of Labor Economics, University of Chicago Press, vol. 23(3), pages 437-466, July.
  25. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2002. "Instrumental variables and GMM: Estimation and testing," North American Stata Users' Group Meetings 2003 05, Stata Users Group.
  26. Jaai Parasnis & Dietrich Fausten & Russell Smyth, 2006. "The Impact of Immigration on Native Workers in Australia," Monash Economics Working Papers archive-40, Monash University, Department of Economics.
  27. repec:nbr:nberbk:abow91-1 is not listed on IDEAS
  28. Hsiao-Chuan Chang, 2004. "The Impact of Immigration on the Wage Differential in Australia," The Economic Record, The Economic Society of Australia, vol. 80(248), pages 49-57, 03.
  29. Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 246-88, April.
  30. Asadul Islam, 2007. "Immigration Unemployment Relationship: The Evidence From Canada ," Australian Economic Papers, Wiley Blackwell, vol. 46(1), pages 52-66, 03.
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