Is the labour demand curve downward sloping for Australia?

This paper estimates the effects of immigration on the labour market outcomes of Australian-born workers using data from the Household, Income and Labour Dynamics in Australia Survey. Using the national labour market approach, we find positive effects of immigration on native earnings. The analysis indicates, however, that not all education groups are positively affected.

In fact, Australian workers with certificates or diplomas have been adversely affected by immigration. The findings are robust across different model specifications and migrant definitions. Finally, we find that immigrants originating from primarily non-English speaking countries have greater positive effects on native earnings than immigrants from English-speaking countries.

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