This study contributes to the recent debate on immigration and unemployment in Australia by investigating the causal linkage between immigration and unemployment. The question of whether `immigrants rob jobs' is examined by identifying the sources of unemployment through causal linkages between unemployment and other key variables such as immigration. The research finds no Granger causality between immigration and unemployment, but does run from industrial structural change to the high unemployment rate in Australia. This research also finds that both GDP growth and immigration inflow reinforce each other in the course of economic development in Australia.
School of EconomicsThe Flinders University of South Australia
Jordan Shan
Department of Applied EconomicsVictoria University of Technology * We wish to acknowledge, with thanks, helpful suggestions and clarifications made by Alicia Rambaldi in relation to her two recent papers on the causality test procedure. We are also indebted to Fiona Sun for her data collection and helpful comments. Alas, all errors and omissions are our own.
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DO MIGRANTS ROB JOBS? THE EMPIRICAL EVIDENCE FROM AUSTRALIA
ABSTRACT