Department of Labour logo for printing

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

Table 7: CES employment and wage elasticities for nativity groups
  Nativity Groups Nativity Groups within
24 Age*Qual Groups
Nativity Groups within
5 Predicted Occ Groups
  OLS IV OLS IV OLS IV
Employment Rate Elasticity (se)
140 LMA -0.005   0.089 * -0.074 ** -0.165 ** -0.052 ** -0.217 **
  (0.07)   (0.05)   (0.01)   (0.05)   (0.02)   (0.07)  
75 TA 0.070   0.176 ** -0.064 ** -0.142 ** -0.089 ** -0.241 **
  (0.07)   (0.07)   (0.01)   (0.04)   (0.02)   (0.05)  
58 LMA 0.087   0.159 ** -0.079 ** -0.176 ** -0.070 ** -0.253 **
  (0.06)   (0.05)   (0.01)   (0.04)   (0.02)   (0.06)  
16 RC 0.187 ** 0.182 ** -0.076 ** -0.214 ** -0.098 ** -0.285 **
  (0.03)   (0.02)   (0.02)   (0.05)   (0.03)   (0.09)  
Wage Elasticity (se)
140 LMA -0.018   -0.150 ** 0.003   -0.068 ** -0.005   -0.216 **
  (0.06)   (0.07)   (0.01)   (0.03)   (0.01)   (0.06)  
75 TA -0.037   -0.186 * 0.001   -0.034   -0.028 * -0.169 **
  (0.07)   (0.10)   (0.01)   (0.02)   (0.02)   (0.05)  
58 LMA -0.073   -0.192 ** 0.002   -0.065 ** -0.023   -0.221 **
  (0.07)   (0.08)   (0.01)   (0.03)   (0.02)   (0.06)  
16 RC -0.114   -0.219 ** 0.005   -0.058 ** -0.057 * -0.296 **
  (0.13)   (0.10)   (0.01)   (0.03)   (0.03)   (0.11)  
Elasticity of Substitution
140 LMA 56.3   7.3   -292.3   12.3   184.7   3.6  
75 TA 28.6   6.3   -871.9   25.2   32.4   4.5  
58 LMA 14.8   6.0   -510.0   12.8   40.8   3.4  
16 RC 10.4   5.4   -183.8   13.6   15.9   2.4  
Labour Supply Elasticity
140 LMA 0.31   -0.59   -23.33   2.42   10.15   1.00  
75 TA -1.87   -0.95   -59.40   4.17   3.15   1.43  
58 LMA -1.19   -0.83   -43.90   2.72   3.06   1.14  
16 RC -1.64   -0.83   -15.14   3.72   1.73   0.96  
Number of Observations (Potential Observations / Percent of Employment Covered)
140 LMA 1,254 (1,260 / 100.0%) 21,847 (30,240 / 99.7%) 6,270 (6,300 / 100.0%)
75 TA 657 (675 / 100%) 14,019 (16,200 / 99.0%) 3,285 (3,375 / 100.0%)
58 LMA 522 (522 / 100%) 11,108 (12,528 / 99.9%) 2,610 (2,610 / 100%)
16 RC 144 (144 / 100%) 3,344 (3,456 / 100.0%) 720 (720 / 100%)

Note: Each cell of the table is from a separate regression with the form of equation (9). All regressions are variance weighted by the nativity-skill-group population in each LMA in a particular year. See the note to Table 1 for more information and the text for a description of how predicted occupations are created.

** 5% Significance, * 10% Significance