Comparative labor market performance of visaed and non-visaed migrants: Pacific islanders in Sydney

Abstract.

Using survey data for Tongan and Samoan migrants in Sydney the effects of visa restrictions on labor market performance of migrants are assessed. Univariate analysis suggests a positive association between unemployment and the unrestricted entry of Samoan step-migrants from New Zealand. A probit model of the determinants of unemployment is estimated with controls for human capital and demographic variables. While human capital endowments are important, visa restrictions do not have a significant effect on either group‘s employability. Implications for policy are discussed highlighting the complementarities between host country immigration policies and foreign aid programs.