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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: http://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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  18. 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).
  19. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March.
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  24. 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.
  25. 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.
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  27. 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.
  28. 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.
  29. 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.
  30. 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..
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