Modern Australian
Men's Weekly

.

Forcing immigrants to work in regional areas will not boost regional economies in the long run

  • Written by James Giesecke, Professor, Centre of Policy Studies and the Impact Project, Victoria University
Forcing immigrants to work in regional areas will not boost regional economies in the long run

As politicians raise concerns about immigration straining infrastructure and public services in Australia’s state capitals, the federal government is considering the idea of binding immigrants to particular regional and rural areas.

The minister for citizenship and multicultural affairs, Alan Tudge, was quoted as saying:

We’re looking at ways that we can effectively bind people to the regions if they’ve got a sponsorship to go to those locations.

The idea behind these sorts of policies is also to develop regional and rural economies. But in recent research with co-authors Louise Roos and John Madden, we find that binding migrants on temporary 457 visas to the country is largely ineffective in boosting regional economies in the long run.

Read more: Countries must compete for migrant workers to boost their economies

The 457 visa program (replaced in April 2017 with a stricter but essentially similar temporary skill shortage visa) allowed employers to bring in foreign skilled workers for up to four years. While employers in any location can apply, the program can be used to direct migrants to non-urban areas, because visa holders are bound to the employers and their locations.

As part of our research, we modelled two scenarios. In the first we looked at what happens with regionally targeted 457 visas, by assigning workers on these visas to non-metropolitan regions. In the second we modelled what would happen if the visa holders were to settle across regions according to their current settlement patterns.

We took into account the labour market and visa details of workers in each capital city and in the rest of each state or territory (except for the ACT, which we treated as one territory). We also factored in the desire of workers to change occupations and regions due to movements in wages.

At the national level, we found that employment and real GDP increase by nearly identical amounts and, likewise, decreases in national wages are the same under programs where immigrants are targeted to rural and regional areas and where they haven’t been targeted.

Read more: Australia's jobs and migration policies are not making the best use of qualified migrants

At the regional level, in the short run, we found targeted visa programs boost regional activity. But this does not hold in the long run. After five to 10 years, economic variables such as real regional GDP and regional employment start to look the same as the untargeted scenario.

The reason for this largely lies in the regional displacement of workers already in the country. In the short run, the targeted migration program boosts workers in the target region. This causes wages in the region to fall relative to wages in other regions. This discourages workers from other regions from moving to the region, and encourages workers in the region to leave.

We have also examined what would happen with permanent skilled migration programs targeted at regional and rural areas.

There are a number of permanent regional skilled migration programs, such as the Regional Sponsored Migration Scheme, the skilled nominated visa and the skilled regional visa. In these schemes visa holders can remain in the country indefinitely, although they must remain in their nominated region for at least two years. This is in contrast to temporary visa holders, who must eventually depart Australia unless, as many do, they transition to a permanent visa.

In investigating targeted permanent visas, we found similar results to temporary visas. The short-run employment and regional GDP gains from regionally targeted migration programs, whether under permanent or temporary visa arrangements, gradually become like those of untargeted programs.

Over time, new immigrants move to other regions, mostly to capital cities, or go overseas. Even if implementable and effective policies could be found to bind new immigrants to regions, the displacement effect we’ve outlined would continue to weaken the long-run impact on regional populations and economies.

Authors: James Giesecke, Professor, Centre of Policy Studies and the Impact Project, Victoria University

Read more http://theconversation.com/forcing-immigrants-to-work-in-regional-areas-will-not-boost-regional-economies-in-the-long-run-96852

Social Media: Is It Increasing Rates of Anxiety and Depression?

In today’s connected world, social media has become an integral part of daily life. Platforms like Instagram, TikTok, and Facebook offer opportuni...

Preventive Maintenance Tips for Hydraulic Equipment

Hydraulic equipment plays a crucial role in industries ranging from construction and mining to agriculture and manufacturing. Whether it’s powerin...

Choosing the Right LiDAR System for Your Project

When planning a project that relies on accurate spatial data, selecting the right LiDAR system is one of the most critical decisions you’ll make. ...

The History of Craft Beer: From Monasteries to Modern Breweries

Craft beer has a rich and fascinating history that stretches back centuries. What we enjoy today in trendy taprooms and bustling breweries is the re...

How Natural Pearls Shaped Trade Routes and Global Economies

Throughout history, natural pearls—those rare, untamed treasures formed by nature itself—have exerted a powerful influence on trade networks, po...

How To Choose The Right Insulation For Your Space

Selecting the appropriate insulation for your home or building is a critical decision that affects comfort, energy efficiency, and present and future ...

7 Best Things to Do in Beaufort, Victoria

Beaufort is a charming small town in Victoria’s Goldfields, full of history, natural beauty, and warm, welcoming locals. Whether you’re passing th...

What to Expect During Divorce Mediation & Settlement

Divorce can be a difficult and emotionally draining process, but mediation and settlement often provide a constructive path forward. Instead of goin...

Navigating Disability Services in Perth: Your Questions Answered

Understanding the landscape of disability support can feel overwhelming, especially when you're just starting out. If you’re looking for support a...

How Veneers and Dental Implants Work Together for Full Smile Restoration

Modern dentistry has strong instruments that can produce life-changing outcomes when it comes to repairing a smile that has been impacted by tooth los...

Gen Z’s Are Going off Grid – But Is It Sustainable?

Australia’s cost of living crisis is causing Gen Z to get creative with frugal living options. Earlier this year, young couple Koby and Amelie wan...

The Risks of DIY Air Conditioning Installation and How to Avoid Them

Air conditioning is essential in Australia, especially during the scorching summer months, when homes and workplaces can become unbearable without rel...

How to Find Reliable Air Conditioning Services Near You in Brisbane Northside

Introduction In Brisbane’s hot and humid climate, air conditioning has become more of a necessity than a luxury. Whether it's keeping your home coo...

Enhance Outdoor Living with Lifestyle Awnings

Creating the perfect balance between indoor comfort and outdoor living is something many homeowners aspire to achieve. In recent years, Lifestyle Aw...

Why Buckets with Lids Are Essential for Safe Storage & Transportation

The right bucket can streamline transport and make handling easier day to day. With options suited to food, chemicals and construction materials, th...

Comfort and Style with Ceiling Fans Perth

While air conditioning is common, it is not always the most cost-effective or sustainable solution, particularly during long hot summers. For homeow...

How Professional Air Conditioning Services Improve Comfort and Efficiency

Air conditioning has become a fundamental part of homes and businesses, providing relief from sweltering summers and keeping interiors warm in winte...

The Value of Professional Rubbish Removal Services

From everyday waste to bulky items like furniture and appliances, finding the right way to dispose of rubbish is not always straightforward. This is...