This paper presents the point systems used for immigrant selections under the Humanitarian and Migration programs in Australia which regulates the inflow of persons seeking permanent residence. The method used for immigrant selection in these programs may affect immigrant quality and labor-market performance. The point tests identify factors in a potential migrant that will benefit Australia or assist with the residency process. The point systems used in a number of components of the immigration program in Australia offer a means of selecting immigrants who will adjust rapidly to the situation of the Australian labor market and bring benefit to Australia. It was demonstrated immigrants are selected for entry on the basis of observable characteristics of the type generally included in empirical analysis of immigrant labor-market performance. It was further concluded that the worldwide market conditions for skilled immigrants are more likely to affect the variations in immigrant quality in Australia than by the Australian point system.

This study is concerned with the determinants of dominant language fluency, its effects on earnings, and its endogeneity with earnings among immigrants. Dominant language fluency is hypothesized to be a function of three fundamental variables: exposure to the language, efficiency in second language acquisition, and economic benefits from language fluency. Conceptual variables with empirical counterparts are developed. Earnings are hypothesized to be a function of language skills, among other variables. Ordinary least squares, instrumental variables, and sample selection bias techniques are used to estimate the equations for Australia. Comparisons are made with analyses for the United States, Canada, and Israel. Copyright 1995 by University of Chicago Press.