The Relationship between Immigration to Australia and the Labour Market Outcomes of Australian-Born Workers

We examine the relationship between immigration to Australia and the labour market outcomes of Australian-born workers. We use immigrant supply changes in skill groups, defined by education and experience, to identify the impact of immigration on the labour market. We find that immigration flows into those skill groups that have the highest earnings and lowest unemployment. Once we control for the impact of experience and education on labour market outcomes, we find almost no evidence that immigration harms the labour market outcomes of those born in Australia.