Cognitive and Non-Cognitive Abilities of Immigrants: New Perspectives on Migrant Quality from a Selective Immigration Country

Abstract

Many countries adopt selective immigration policies to boost migrant quality. Recent theoretical work suggests that migrant selection based on observable characteristics (education, language proficiency) is likely to affect migrants’ unobservable characteristics. We contribute to this literature by quantifying traditionally unobservable components of migrant quality in Australia, a high-income, high-migrant share OECD country with a selective immigration policy. Using nationally representative survey data, we proxy migrant quality with standard measures of the Big-Five personality traits and cognitive ability. We find that although first-generation immigrants score significantly lower on English language ability, they outperform non-immigrant Australians in extraversion, conscientiousness, and openness to new experiences, traits which are associated with better sociability, norm adherence, and creativity. The migrant premium in non-cognitive ability has been particularly high since Australia introduced selective immigration policies, which admitted migrants regardless of nationality but based on personal attributes. The migrant premium in personality is passed on to the second generation. Whilst the off-spring no longer experiences language penalties, it scores significantly higher on conscientiousness, agreeableness, a trait associated with altruism, and executive function. Despite higher levels of human capital, neither first nor second-generation immigrants outperform non-immigrant Australians in labor-market returns and occupational prestige.