Skilled Immigration and Wages in Australia
Asad Islam () and
Dietrich Fausten ()
The Economic Record, 2008, vol. 84, issue s1, S66-S82
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 techniques to control for the potential endogeneity of immigration. The results, using alternative estimation strategies, are consistent with the dominant findings from existing empirical work. There is no robust evidence that a relative increase in skilled immigrants exerts any discernible adverse consequences on the wage structure in Australia. Copyright © 2008 The Economic Society of Australia.
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