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Labour Market and Human Capital Behaviour of Immigrant Couples: Evidence from Australia
Author(s) -
Derby SarahJane,
Islam Asad,
Smyth Russell
Publication year - 2020
Publication title -
international migration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.681
H-Index - 64
eISSN - 1468-2435
pISSN - 0020-7985
DOI - 10.1111/imig.12618
Subject(s) - immigration , human capital , economics , labour economics , investment (military) , demographic economics , political science , market economy , politics , law
We examine the labour market and human capital investment behaviour of immigrant couples in Australia. The family investment hypothesis (FIH) states that immigrant husbands, whom the FIH assumes to be the primary earners in the family, will invest more in their human capital than immigrant wives, whom the FIH assumes to be secondary earners. Using longitudinal data from Household, Income and Labour Dynamics in Australia (HILDA) for the period 2001 to 2014, we do not find support for the FIH. Instead, we find that foreign‐born husbands and wives share similar labour market assimilation patterns with respect to hours of work and wages. Our estimates suggest that immigrant wives' labour market behaviour can be better explained by their own long‐term career progression and labour market assimilation, than through supporting their husbands' labour market assimilation.