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Economic Impacts of Migration and Population Growth

Author

Listed:
  • Productivity Commission
Abstract
The Productivity Commission release its research report into the ‘Economic Impacts of Migration and Population Growth’ in May 2006. According to the Commission’s findings increasing skilled migration would make a positive, but small, overall contribution to Australia’s future per capita income levels. The report was commissioned by the Australian Government. To assess the effect of skilled migration, the Commission estimated the economic effects of a simulated permanent increase in skilled migration of about 50 per cent on the level in 2004-05, using the Monash model at the Centre of Policy Studies. Positive effects arise from higher participation rates and an up-skilling of the workforce. But some of the economy wide consequences have a negative effect, such as less capital per worker and a decline in the terms of trade. By 2024-25, the net effect is an increase in income per capita, on average, is projected to be about $400 (or about 0.7 per cent), compared with a base case scenario. Most of the gains are likely to accrue to the migrants. The result is consistent with previous Australian studies and others conducted overseas. Recent changes to Australia’s migration program include a greater emphasis on skills, increased numbers of temporary migrants, and more diversification in the country of origin. A greater emphasis on skills has resulted in improved labour market outcomes for migrants. English language proficiency stood out as a key factor determining the ease of settlement and labour market success of migrants to Australia.

Suggested Citation

  • Productivity Commission, 2006. "Economic Impacts of Migration and Population Growth," Research Reports, Productivity Commission, Government of Australia, number 20.
    • Handle: RePEc:ris:prodcs:20
    Note: 438 pages
    as

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    File URL: http://www.pc.gov.au/__data/assets/pdf_file/0006/9438/migrationandpopulation.pdf
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    File URL: http://www.pc.gov.au/projects/study/migrationandpopulation/docs/finalreport
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    References listed on IDEAS

    as
    1. Greg Walker, 1998. "Economies of Scale in Australian Banks 1978–1990," Australian Economic Papers, Wiley Blackwell, vol. 37(1), pages 71-87, March.
    2. Trinh Le & John Gibson & Les Oxley, 2003. "Cost‐ and Income‐based Measures of Human Capital," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 271-307, July.
    3. Glenn Withers, 2003. "Core Issues In Immigration Economics And Policy," Economic Papers, The Economic Society of Australia, vol. 22(1), pages 13-23, March.
    4. L. Alan Winters & Terrie L. Walmsley & Zhen Kun Wang & Roman Grynberg, 2003. "Liberalising Temporary Movement of Natural Persons: An Agenda for the Development Round," The World Economy, Wiley Blackwell, vol. 26(8), pages 1137-1161, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Asadul Islam & Dietrich K. Fausten, 2008. "Skilled Immigration and Wages in Australia," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 66-82, September.
    2. Rivera, Luis & Rojas-Romagosa, Hugo, 2009. "Human Capital Formation and the Linkage between Trade and Poverty: The Cases of Costa Rica and Nicaragua," Conference papers 331887, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Weiping Kostenko & Mark Harris & Xueyan Zhao, 2012. "Occupational transition and country-of-origin effects in the early stage occupational assimilation of immigrants: some evidence from Australia," Applied Economics, Taylor & Francis Journals, vol. 44(31), pages 4019-4035, November.
    4. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    5. Ross Guest, 2013. "Population Ageing and Productivity: Implications and Policy Options for New Zealand," Treasury Working Paper Series 13/21, New Zealand Treasury.
    6. Productivity Commission, 2006. "The Role of Non-Traditional Work in the Australian Labour Market," Research Papers 0601, Productivity Commission, Government of Australia.
    7. Michael Plumb & Mark Baker & Gareth Spence, 2010. "The Labour Market during the 2008-2009 Downturn," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 1-6, March.
    8. Rod Tyers & Iain Bain & Jahnvi Vedi, 2007. "The Global Economic Implications of Freer Skilled Migration," DEGIT Conference Papers c012_028, DEGIT, Dynamics, Economic Growth, and International Trade.
    9. Jacques Poot, 2007. "Demographic Change and Regional Competitiveness: The Effects of Immigration and Ageing," Population Studies Centre Discussion Papers dp-64, University of Waikato, Te Ngira Institute for Population Research.
    10. Alimi, Omoniyi & Maré, David C. & Poot, Jacques, 2018. "International Migration and the Distribution of Income in New Zealand Metropolitan and Non-Metropolitan Areas," IZA Discussion Papers 11959, Institute of Labor Economics (IZA).
    11. Rob Hodgson & Jacques Poot, 2011. "New Zealand Research on the Economic Impacts of Immigration 2005-2010: Synthesis and Research Agenda," RF Berlin - CReAM Discussion Paper Series 1104, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    12. James Giesecke, 2008. "A Top-down Framework for Regional Historical Analysis," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(1), pages 45-87.
    13. To, Hang & Grafton, R. Quentin & Regan, Sue, 2017. "Immigration and labour market outcomes in Australia: Findings from HILDA 2001–2014," Economic Analysis and Policy, Elsevier, vol. 55(C), pages 1-13.
    14. Kacey DOUGLAS, 2016. "Raja Junankar, Economics of Immigration: Immigration and the Australian Economy," Journal of Economic and Social Thought, KSP Journals, vol. 3(2), pages 317-320, June.
    15. Peter E. Robertson, 2007. "Reflections on Australia’s Skilled Migration Policy," Discussion Papers 2007-22, School of Economics, The University of New South Wales.
    16. Miguel Benítez Rueda, 2022. "Migración venezolana y productividad laboral en Colombia," Coyuntura Económica, Fedesarrollo, vol. 52, pages 35-64, December.
    17. Ben Dolman, 2007. "Patterns of Migration, Trade and Foreign Direct Investment across OECD Countries," DEGIT Conference Papers c012_030, DEGIT, Dynamics, Economic Growth, and International Trade.

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