The Impact of Immigration on Native Workers in Australia

Jaai Parasnis, Dietrich Fausten and Russell Smyth

Monash Economics Working Papers from Monash University, Department of Economics

Abstract: Immigration leads to a change in the supply of workers across skill groups. The resulting impact on employment and earnings of native workers is estimated using an innovative approach developed by Borjas (2003). The approach takes into account the skill differentials in the labour force and defines skill groups of workers in terms of their education and work experience. We find that an increase in the proportion of immigrants has a significant positive effect on labour market outcomes for native workers. This finding challenges widely held perceptions that immigration erodes labour market outcomes for native workers.

Keywords: Immigration; Australia; Employment; Earnings (search for similar items in EconPapers)
Pages: 27 pages
Date: 2006
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Citations: View citations in EconPapers (10)

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