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A Reinterpretation of the CIE Projections of the Long‐Run Economic Effects of Immigration *
Author(s) -
PARMENTER B. R.,
PETER MATTHEW W.
Publication year - 1991
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1991.tb02562.x
Subject(s) - immigration , reinterpretation , economics , immigration policy , demographic economics , labour economics , political science , law , physics , acoustics
The 1988 Committee to Advise on Australia's Immigration Policies uses ORANI projections of increasing GDP per head as indicators of the economic benefits of immigration. We show that the projections imply that immigration reduces incumbents' pre‐tax real incomes, leaving their post‐tax incomes unchanged The rise in GDP per head is due to immigrants' relatively high participation rates. We argue that distributional information is important in assessing the effects of immigration.