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Exchange rate fluctuations and immigrants' labour market outcomes: New evidence from Australian household panel data

Ha Nguyen and Alan Duncan

Journal of International Economics, 2017, vol. 105, issue C, 174-186

Abstract: In this paper, we exploit plausibly exogenous changes in exchange rates across home countries over time and panel data to identify the causal impact of exchange rate fluctuations on Australian immigrants' labour market outcomes. We present new and robust evidence that, unlike immigrants in the US, those in Australia as a whole do not reduce their yearly labour market outcomes when the local currency appreciates. While female immigrants don't adjust their labour activities, male immigrants reduce their weekly labour supply and hence earn less when the Australian dollar appreciates. This work also highlights the importance of controlling for individual heterogeneity as well as gender when modelling the labour market behaviour of immigrants.

Keywords: Exchange rate; Labour supply; Immigrants; Australia (search for similar items in EconPapers)
JEL-codes: F31 J22 J61 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (12)

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Working Paper: Exchange Rate Fluctuations and Immigrants' Labour Market Outcomes: New Evidence from Australian Household Panel Data (2015) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:105:y:2017:i:c:p:174-186

DOI: 10.1016/j.jinteco.2016.12.010

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