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The impact of immigration on the labour market outcomes of New Zealanders

Table 11: Simulated impacts of different immigration scenarios (CES estimates)
    Impact on Employment Rates Impact on Wage Rates
Scenario Component Age-Qual Occ Age-Qual Occ
    Impact on New Zealand-Born
A: Halve RM flows Between -0.04% 0.00% 0.01% -0.03%
(from 138,475 to 69,238) Within -0.70% -0.96% -0.31% -0.96%
  Total -0.74% -0.97% -0.30% -0.99%
B: Double RM flows Between 0.11% 0.01% -0.01% 0.08%
(from 138,475 to 276,950) Within 1.28% 1.80% 0.58% 1.80%
  Total 1.39% 1.81% 0.57% 1.87%
C: RM flows are 75% high-skilled Between 0.03% 0.05% -0.01% -0.41%
(AQ: 64% in 2006) Within -0.02% -0.05% 0.01% 0.05%
(Occ: 48% in 2006) Total 0.01% 0.00% 0.00% -0.35%
D: RM flows are 25% high-skilled Between -0.03% 0.00% 0.06% 0.66%
(AQ: 64% in 2006) Within 0.02% 0.00% -0.07% -0.09%
(Occ: 48% in 2006) Total -0.01% 0.00% -0.01% 0.57%
    Impact on Earlier Migrants
A: Halve RM flows Between 0.04% 0.01% 0.03% 0.14%
(from 138,475 to 69,238) Within -0.76% -0.98% -0.34% -0.98%
  Total -0.73% -0.97% -0.31% -0.84%
B: Double RM flows Between -0.03% -0.02% -0.05% -0.23%
(from 138,475 to 276,950) Within 1.39% 1.83% 0.62% 1.84%
  Total 1.37% 1.81% 0.58% 1.60%
C: RM flows are 75% high-skilled Between -0.03% -0.05% -0.03% -1.64%
(AQ: 64% in 2006) Within 0.03% 0.05% 0.04% 0.21%
(Occ: 48% in 2006) Total -0.01% 0.00% 0.01% -1.43%
D: RM flows are 25% high-skilled Between 0.19% 0.08% 0.14% 1.75%
(AQ: 64% in 2006) Within -0.16% -0.09% -0.17% -0.23%
(Occ: 48% in 2006) Total 0.04% 0.00% -0.03% 1.52%
    Impact on Recent Migrants
A: Halve RM flows Between 0.37% 0.02% 0.13% 0.20%
(from 138,475 to 69,238) Within 10.38% 14.05% 4.26% 13.99%
  Total 10.75% 14.07% 4.39% 14.19%
B: Double RM flows Between -0.59% -0.04% -0.20% -0.33%
(from 138,475 to 276,950) Within -9.56% -13.19% -3.90% -13.13%
  Total -10.15% -13.23% -4.11% -13.46%
C: RM flows are 75% high-skilled Between -0.12% -0.02% -0.07% -1.46%
(AQ: 64% in 2006) Within 0.60% 3.57% -0.13% 1.85%
(Occ: 48% in 2006) Total 0.47% 3.55% -0.19% 0.40%
D: RM flows are 25% high-skilled Between 0.56% 0.06% 0.27% 1.59%
(AQ: 64% in 2006) Within 5.26% 2.66% 3.40% 4.15%
(Occ: 48% in 2006) Total 5.82% 2.72% 3.67% 5.74%

Note: Estimated impacts in this table are derived from coefficients in Table 6 and Table 7 for 140 LMAs using instrumental variables, using formulae presented in the text. For the purposes of these simulations, 'high skilled' refers to education groups with post-school or degree qualifications, or predicted occupation groups of Legislators/Administrators/Managers; Professionals; and Technicians/Associate Professionals.