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International Migration And The Welfare State: Asian Perspectives, Noel Gaston, Gulasekaran Rajaguru
International Migration And The Welfare State: Asian Perspectives, Noel Gaston, Gulasekaran Rajaguru
Gulasekaran Rajaguru
Immigration is a controversial topic in Australia and some of its Asian neighbours. Given the potential impact on native welfare, such as effects on relative wages and unemployment, there has been political mobilisation on the immigration question. The presence of a redistributive welfare state in all major immigrant host countries creates yet another margin on which immigration affects native welfare. The focus of the paper is whether a large intake of immigrants leads to a reduction in welfare state effort. It is often argued that steady increases in immigration lead to public pressure for stricter immigration controls or for less …
How An Export Boom Affects Unemployment, Noel Gaston, Gulasekaran Rajaguru
How An Export Boom Affects Unemployment, Noel Gaston, Gulasekaran Rajaguru
Gulasekaran Rajaguru
Does trade affect the equilibrium rate of unemployment? To answer this question, we propose a small open economy model that incorporates realistic features of labour markets. The model predicts that a sustained improvement in the terms of trade lowers unemployment. We test this prediction for the case of Australia, an economy that is subject to large terms of trade movements. We use a novel technique to estimate the structural model based on a combination of traditional econometric procedures and the calibration of time-varying parameters. Both reduced form and the structural estimates reveal strong evidence that higher export prices, capital accumulation …