Picking Winners: The Recent Transformation of Australia's Skill Migration Policy

Abstract

From 1980 to 1996, Australian researchers identified consistently inferior labor market outcomes for professionals from non-English-speaking background source countries. In 1997, the incoming conservative government initiated a major review of Australia's skilled migration program, based on a determination to 'select for success' among applicants. Subsequent initiatives included mandatory English language testing, rigorous qualifications screening, incentives for international students to migrate, and abolition of income support in the first two years post-arrival. This article provides a detailed analysis of factors leading to this policy transformation. Labor market outcomes for 2001 are defined, including a halving of unemployment among recently arrived migrants.