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RBA Governor Philip Lowe (AAP Image, Mick Tsikas)
Australia’s economists are disputing links between high immigration and stagnant wages, after RBA Governor Philip Lowe reintroduced the theme in a recent speech.
While Lowe wasn’t advocating for low immigration, he did conclude that foreign labour had been used to relieve wage pressure that may have otherwise led to higher wages.
CEDA senior economist Gabriela D’Souza hit back this week, arguing that immigration has helped grow Australia and that, if anything, research points to immigration having “a small-to-negligible positive effect” on aggregate wages.
The national immigration debate has been reignited as Australia’s borders remain shut – and the catalyst is an unlikely one.