This paper investigates the impacts of recent legislation designed to reduce 'visa hopping' in Australia by reducing onshore applications from existing visa holders. The paper forecasts the impact on Australia's skilled labour market by analysing demographic data, finding that 'visa hoppers' are predominately low-skilled migrants from low-income countries. 

The authors conclude that while visa hoppers tend to be low-skilled, the increasingly competitive migration system has led some higher-skilled migrants to engage in visa hopping. Nonetheless, this reform is unlikely to significantly reduce Australia’s intake of high-skilled migrants.

Key findings

1. The share of visa hoppers has surged from 2.5% in 2009 to over 25% by 2018. 
2. Visa hoppers typically come from low-income countries like Nepal, Pakistan, and Bangladesh.
3. They earn 20% less than other graduate visa holders and mostly work in lower-skilled occupations. 
4. However, the wage gap between visa hoppers and those who secure permanent residency has been narrowing over time.