Migration and regional productivity: Evidence from individual wages in Australia
This paper examines the contribution of international migrants to regional differences
in labour productivity in Australia. The study relies on individual-level administrative
wage data from 2011 to 2018. It finds that a region with a 10% larger migrant share
has, on average, a 1.3% larger regional wage difference, which indicates a positive
link between migration and labour productivity. The presence of migrants benefits
native workers with different skill levels residing in all types of regions. The positive
effects of migrants are even more pronounced for higher-skilled migrants. Concretely,
a region with a 10% larger share of higher-skilled migrants has, on average, a 1%
higher regional productivity difference. However, these additional benefits mainly
accrue to more productive regions and those with higher migrant shares than the median
region.
Available from December 04, 2023
In series:OECD Regional Development Papersview more titles