Estimating the effects of recent migrants on local labour market outcomes

Abstract

Western Democratic countries have become increasingly concerned about the outcomes of local labour in light of increasing migration. Australia has had a history of tailoring immigration policy in response to fears about migrants stealing the jobs of local workers. Labour market testing, which in international cases has been proved to be ineffective is an example of one such policy. Using methodology from US studies, we apply these techniques to the Australian case. We find no evidence that migrants have taken the jobs of local workers. To the contrary, we find positive effects on the labour force participation rates, and wages.