Jaai Parasnis

Do Australian Qualifications Help? The Effect of Host Country Qualification on Migrant Participation and Unemployment*

The current Australian migration program rewards applicants for possessing Australian tertiary qualifications. This study examines whether such qualifications help mitigate the labour market disadvantages faced by immigrants in Australia. The effect of host country qualification on labour market assimilation is estimated by comparing the labour force participation and unemployment of natives with two groups of migrants: those holding foreign qualifications and those holding Australian qualifications. Controlling for factors such as level of education and experience, there is no evidence that Australian qualifications result in better labour market outcomes for migrants.

Do Immigrants Save Less than Natives? Immigrant and Native Saving Behaviour in Australia

The observed wealth differential in favour of native households seems to contradict the analytical presumption of a saving differential in favour of immigrant households. This article seeks to explain the observed differences in wealth through an examination of the respective saving behaviour of immigrants and natives. Quantile regression and semiparametric decomposition methods are used to identify the saving differential and to isolate the factors that contribute to it. The basic finding is that household income is the key to the differential saving pattern. Moreover, decomposition analysis suggests that immigrants have a tendency to save more than natives when compared with Australian-born households with similar characteristics. We also find evidence of heterogeneity in immigrant saving behaviour depending on household types and countries of origin.

An analysis of the cost structure of water supply in Sri Lanka

Water utilities in developing countries face a challenge in maintaining the existing supply and extending the supply of pipe-borne water to rural areas in face of growing demand. Understanding the cost structure is important for developing the pricing policies, regulating the market structure and ensuring the financial viability of the supply of pipe-borne water. This paper investigates economic parameters of water supply in Sri Lanka, which exhibits the common physical and institutional features of water sector in Asian countries. The estimated marginal cost of water supply of Sri Lankan rupees (SLRS) 16.50 per cubic metre in the short run, rising to SLRS 47.25 in the long run, suggests that water is under-priced under the current pricing regime. We find existence of economies of scale as well as significant substitution possibilities between inputs. Thus, under correct tariff regime, there is a scope to accelerate the expansion of water supply.

ESTIMATING THE RELATIONSHIP BETWEEN IMMIGRANT AND NATIVE WORKERS IN AUSTRALIA: A PRODUCTION THEORY APPROACH

The impact of immigration on labour markets depends, among other factors, on the substitutability or complementarity between immigrants and natives. This relationship is examined by treating migrant and native labour, along with capital, as inputs in production process. Estimated price elasticities of substitution between immigrants and native labour suggest that in Australian context, an increase in the wage rate of one group of workers leads to an increased demand for the other. The estimated elasticities of substitution between immigrant and native workers and the complementary relationship between immigrants and capital provide an insight into the complex effects of immigration.