Great Expectations: Migration and Labour Market Outcomes in Australia

Abstract

It is commonly argued that higher levels of mobility among job seekers leads to greater labour market efficiency; improving job matching, reducing friction, and resulting in lower overall levels of unemployment. If unemployment gives rise to migration, and migration increases the prospect of employment (Pekkala and Tervo, 2002); labour migration might be regarded as highly micro-efficient process. In the Australian context such an argument is particularly appealing in light of flagging growth in Australia’s rural and remote regions (Mitchell and Bill, 2006).