Economic and social integration of Asian migrants in Australia

This study investigates the labor market integration of migrants from Asian countries of origin in Australia using longitudinal data from the Household, Income and Labor Dynamics in Australia (HILDA) survey during the period 2000-2022. In particular, it analyses migrants' economic and social integration using aggregate indicators based on principal component analysis (PCA) and the ethnosizer developed by Constant, Gataullina and Zimmermann (2009, Ethnosizing immigrants. Journal of Economic Behavior and Organization, 69(3), 274-287). The analysis reveals that immigrants from Asia are economically well integrated in Australia's labor market, with comparable probability of employment, level of earnings and job satisfaction. This is consistent with Australia's stated immigration policy objective of admitting newcomers who can be quickly turned into active economic agents. However, these migrants are not as well socially integrated, revealing a disconnect between their economic and social integration in the host country. This asymmetry is novel and a likely reflection of persistent and deeper hurdles to becoming part of the host society. Overall, the results suggest that integration is an inter-generational process, which may be slower in the absence of targeted society-building policies.