Australian migration policy change: Selecting winners and making losers

I investigate the effects of 1997 Australian migration policy changes on the skilled immigrants labour market and social assimilation. I find that, after the changes, notwithstanding the overall success and stronger favourable self-selection of skilled immigrants, females, Asians and the `poorer? are at risk of underemployment and mental disorder. The findings facilitate the debate on economic gains and social costs of policy reforms.