A COMMENT ON THE RECENT DEBATE ON THE ECONOMICS OF IMMIGRATION

A COMMENT ON THE RECENT DEBATE ON THE ECONOMICS OFIMMIGRATION Stephen JoskeSome recent calls for higher immigration for economic reasons have pointed to the boost to the sizeof the economy from a larger population. However, this says little about average living standards. Arecent study by Econtech has shown that the lower immigra tion flowing from t he Government’s 1996reforms is compatible with higher average living standards. This is consistent with a large body ofresearch which indicates that immigration does not have a substantial positive effect on livingstandards, Rather, the effect is small and could be positive or negative. The difficulty of boosting skilledimmigration without lowering average skill levels reduces the economic attractions of higherimmigration.In 1998 and 1999 there were a number of February 1999 ACCI Review it arguedthat Australia should aim for a minimumcalls from influential bodies and mediaannual net immigration intake of 0.67 percommentators for higher immigration.cent of the population, or around 123,000These were often linked to claims thatthiswould benefit the economy. The Gov- persons for 1999-2000. The ACCI notedernment, however,announcedaplanned that ‘while such an intake would be wellabove the historic-lows of around 68,000settler intake for 1999-2000 that was2persons adopted by the Government inalmostunchangedfromthepreviousyear.its first term, the economic dividends areThis article concludes that there is alikely ...