This paper examines the contribution of international migrants to regional differences in labour productivity in Australia. The study relies on individual-level administrative wage data from 2011 to 2018. It finds that a region with a 10% larger migrant share has, on average, a 1.3% larger regional wage difference, which indicates a positive link between migration and labour productivity. The presence of migrants benefits native workers with different skill levels residing in all types of regions. The positive effects of migrants are even more pronounced for higher-skilled migrants. Concretely, a region with a 10% larger share of higher-skilled migrants has, on average, a 1% higher regional productivity difference. However, these additional benefits mainly accrue to more productive regions and those with higher migrant shares than the median region.
