A comment on the recent debate on the economics of immigration

Abstract

Some recent calls for higher immigration for economic reasons have pointed to the boost to the size of the economy from a larger population. However, this says little about average living standards. A recent study by Econtech has shown that the lower immigration flowing from the Government’s 1996 reforms is compatible with higher average living standards. This is consistent with a large body of research which indicates that immigration does not have a substantial positive effect on living standards, Rather, the effect is small and could be positive or negative. The difficulty of boosting skilled immigration without lowering average skill levels reduces the economic attractions of higher immigration. Copyright. Monash University and the author/s