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A Reinterpretation of the CIE Projections of the Long‐Run Economic Effects of Immigration

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  • B. R. PARMENTER
  • MATTHEW W. PETER

Abstract

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.

Suggested Citation

  • B. R. Parmenter & Matthew W. Peter, 1991. "A Reinterpretation of the CIE Projections of the Long‐Run Economic Effects of Immigration," The Economic Record, The Economic Society of Australia, vol. 67(4), pages 331-337, December.
    • Handle: RePEc:bla:ecorec:v:67:y:1991:i:4:p:331-337
    DOI: 10.1111/j.1475-4932.1991.tb02562.x
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    References listed on IDEAS

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    1. G. A. Meagher & Nisha Agrawal, 1986. "Taxation Reform and Income Distribution in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 19(3), pages 33-56, September.
    2. David S. Harrison, 1984. "The Impact of Immigration on a Depressed Labour Market: The South Australian Experience," The Economic Record, The Economic Society of Australia, vol. 60(1), pages 57-67, March.
    3. Usher, Dan, 1977. "Public Property and the Effects of Migration upon Other Residents of the Migrants' Countries of Origin and Destination," Journal of Political Economy, University of Chicago Press, vol. 85(5), pages 1001-1020, October.
    4. repec:bla:ecorec:v:60:y:1984:i:168:p:57-67 is not listed on IDEAS
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    Cited by:

    1. Matthew W. Peter, 1993. "The Use of the ORANI Model in the Immigration Debate," Centre of Policy Studies/IMPACT Centre Working Papers g-103, Victoria University, Centre of Policy Studies/IMPACT Centre.

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