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Title: Do Migrants get good jobs in Australia? The Role of Ethnic Networks in Job Search. https://onlinelibrary.wiley.com/doi/full/10.1111/j XXXXXXXXXX00488.x Questions: o Based on theoretical...

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Title: Do Migrants get good jobs in Australia? The Role of Ethnic Networks in Job Search.
https://onlinelibrary.wiley.com/doi/full/10.1111/j XXXXXXXXXX00488.x
Questions:
o Based on theoretical arguments, why would one expect new migrants to experience a negative shock on their expected wage in the host country?
o Do migrants change occupation upon arriving in the host country? What theoretical arguments would justify this?
o Based on these arguments, what type of migrants do you think would be most negatively affected in terms of labour market outcomes upon settlement in the host country?
Answered Same Day May 31, 2021

Solution

Dr. Smita answered on Jun 02 2021
121 Votes
Do Migrants get good jobs in Australia? : The Role of Ethnic Networks in Job Search.
The cu
ent assignment is based on the critical analysis of the paper published in the year 2008. The paper focuses on the job market scenario in Australia with special focus on the migrant labor. Labor economics studies in detail the conditions prevalent in the job market with respect to demand and supply of labor. The analysis of the research paper involves the use of the existing theories in the labor economics. It has been observed that the labor migrant faces a downward trend in their career in the initial stages of the migrant movement which eventually improves over the period of time. It is also observed that due to the economic pressures the labor migrants also accept ‘bad jobs’ in the initial period and then eventually move to better jobs. This is true when the employability conditions in the market are stable. It has also been observed that the migrants move to better jobs in an average period of 1.5 years. (Mahuteau & Junankar, 2008)
Why would one expect new migrants to experience a negative shock on their expected wage in the host country?
A good job is defined in terms of both objective as well as subjective criteria. The paper under analysis states that when the migrants are new in Australia, they are bound to face a downward movement in their occupational ladder in the initial stages of their job search. One of the important reasons behind this is the imperfect mobility of human country from their host country to the nation of Australia. Mobility of labor and human capital is measured in terms of the ease with which the labor can move from one area to another or more specifically from one nation to another. The development of human capital takes place with training, education and skill development. These qualities are quite restricted on the basis of the geographic and technological area where these human capital components are employed. In the initial stages of their migration from their home country to Australia, they may find it difficult to settle into the new jobs. Also, the Australian organizations may feel less confident while employing them in the initial stages as it involves investment in term of time and resources to mould and adjust these migrants labors as per their working and economic conditions. Migrants are also not eligible for the social security benefits from the national funds. Hence, the result being that they end up getting into ‘bad jobs’ before moving to better job in the course of time. The research states that it is also observed that there is an average period of 1.5 years that a migrant labor takes to eventually move into a better job. The Australian migrant policy also adds to the trend. In the year 1996, the migrant policies were modified when there was the introduction of wait period of 2 years for non refugees to have an access to the social security benefits (Chiswik and Miller, 2006). This further adds to the wave to receive better job prospects after their 1.5 years of stay in the nation. The Australian nation is of the opinion that such policies would induce better inflow of labor and better quality of human capital inflow in their nation. Hence, the two year wait period for receive the social welfare benefits lead to an increase in the opportunity cost for job search for the migrant labor and thus lead to a downward trend in their wage rate. This has greatly affected the wages received by them and eventually made them face negative shocks in the wage rate. (Fa
enblum, 2015)
Do migrants change occupation upon a
iving in the host country? What theoretical arguments would justify this?
Considering the fact that migrants face issues and even face negative shocks and downward movement in their occupational ladder, finding a job in the host country is not an easy task. Also, considering the basic cost of living and lack of access to the social security measures in the host country for the initial two years makes the position of the job searcher weaker in the job market. Like it is said beggars are not choosers, the migrant labor does not have many options to choose from. There is a condition of disequili
ium in the job market where the supply of migrant labor is high and the demand for the migrant labor is low. Thus the oversupply of the migrant labor in the job market leads to a dearth of job options for them. In many cases because of financial pressures and pressures to...
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