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The Impact Of Immigration On The Labour Market Outcomes Of New Zealanders

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Executive Summary

This paper uses data from the 1996, 2001 and 2006 New Zealand Census to examine how the supply of immigrants in particular skill-groups affects the employment and wages of the New Zealand-born and of earlier migrants. The authors first estimate simple CES production functions that allow for substitutability between workers from different skill groups, but assume that, within skill-groups, migrants are perfect substitutes for nonmigrants. They next estimate hierarchical CES production functions that allow for substitutability between immigrant and non-immigrant workers within skill groups, but constrain the patterns of wage impacts on different factors in response to changing factor shares, and that natives and migrants are not substitutable across skill-groups.

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