Immigration and labour market outcomes in Australia: Findings from HILDA 2001-2014

Using panel data for the period 2001-2014 from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, hourly wage equations and probit models of the probability of being employed were estimated. Results show that English-language proficiency, education qualifications and work experience are important positive determinants of both individual wage and of the likelihood of having a paid job. By comparison to many previous studies that find either a negative or no wage gap for migrants, we find that male migrants from OECD and English-speaking countries earn a higher hourly wage than male native-born Australians and female migrants from these countries earn a similar wage as female native-born Australians. Without controlling for the education level, migrants from non-OECD and non-English speaking countries earn a similar wage compared to native born Australians. Controlling for their education level, migrants from non-OECD and non-English speaking countries earn less than native-born Australian workers, but this wage gap diminishes with their length of residency in Australia. We also find that there is no difference between male migrants and male native-born Australians in terms of the likelihood of being employed, but we do find that female migrants are more likely to be unemployed compared to female native-born Australians.