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Skilled Immigration and Wages in Australia

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  • Islam, Asadul
  • Fausten, Dietrich

Abstract

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.

Suggested Citation

  • Islam, Asadul & Fausten, Dietrich, 2008. "Skilled Immigration and Wages in Australia," MPRA Paper 7138, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:7138
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    References listed on IDEAS

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    Cited by:

    1. Jaai Parasnis, 2010. "Estimating The Relationship Between Immigrant And Native Workers In Australia: A Production Theory Approach," Australian Economic Papers, Wiley Blackwell, vol. 49(1), pages 73-85, March.

    More about this item

    Keywords

    Immigration; wage; endogeneity; instrumental variable;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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