Immigration in New Zealand

The Asian migration wave into Auckland over the early 90s is one of the largest labour market influences on the NZ economy over the 1991 to 1996 period. During the early 1990s immigration into New Zealand from Asia, especially from Hong Kong, Taiwan, China and Korea immigrant to New Zealand. It was this immigration that gave NZ its first "Asian invasion" slogan for the 1996 national elections. As we know immigration from Asia fell back significantly after the Asian economic crisis at 1997. The economic of New Zealand was very slow during the late 1990s.

Result in booms in immigration at 2001 again which there are approximately 237,000 people who identified with Asian ethnicities. It is about over six percent of the New Zealand population. During the year ended June 2002, the New Zealand Immigration Service approved entry for just under 53,000 new residents. Of these, 8,700 were Chinese and 8,400 were Indians – well above the third placed United Kingdom (6,600 approvals for residence) and fourth placed South Africa (4,300). Just over half (54 percent) of all approvals were for people who were citizens of countries in Asia.

In addition to the approvals for residence, there were 64,000 approvals for work permits (37 percent granted to citizens of countries in Asia) and 78,000 approvals for student visas/permits (82 percent granted to citizens of countries in Asia). Who chooses to immigrate to the New Zealand? The answer is that workers from low wage countries will immigrate generally. On average, people expect those who immigrate to have higher expected earnings in NZ. Roy model describes how workers sort themselves among employment opportunities.

Diagrams illustrate the relationship between wages and skills for each of the countries. The slope of these wage-skill lines gives the payoff to an additional efficiency unit in the New Zealand. The main reason for Asian migrant to the New Zealand whenever New Zealanders' earnings exceed earnings in Asian country. In Asian immigrants case there is a negative selection of the immigrant flow as figure 1 illustrated. For those low skill workers can earn more if they immigrate to New Zealand. On the other hand, there is a positive selection of the immigrant flow as figure 2 illustrated.

For those high skill workers will be able to earn more if they immigrate to New Zealand. This is the assumption we have to consider in this Asian case we assume that earnings in both Asian and New Zealand depend on skills that is completely transferable across counties. Policy Given that the great majority of immigrants, temporary workers, and international students from Asia reside in Auckland, it is not surprising that this population component has become an increasingly visible target for anti-immigration political and public comment in New Zealand's largest city.

The migration policy is the acid to select the highest proportion of migrants who will be economically successful in NZ and lowest proportion of migrants who will not be. In Asian case some new immigrants even suffer communicate in English. It raises the unemployment rate of New Zealand. The new policy have been set up in November 2002 the New Zealand government raised the level of competence in the English language from 5. 0 to 6. 5 on the proficiency test for applicants who seeking residence visas or permits. This is the first of several policy adjustments that are being introduced.

Due to this policy the percent of immigrants from Asian have been sharply decreased. Investor immigrants can be considered as migrants who will be economically successful in the county. Under NZ immigration policy in order to qualify as an investor, the applicant must have: Immigration as an investment in human capital, like education: current consumption is foregone by incurring cost in moving location so as to increase future earnings or any other benefits. So if the present value of the expected increased earnings exceeds the present value of these investment costs, the person are willing to move.

In earlier research established that their average income levels across the origin for New Zealand migrants (Asian counties) were under those of New Zealand. For example, for the first forty years of the post-war period the migrant opportunity cost was an average growth rate for per capita income of 1. 52 percent as opposed to an actual growth rate of 3. 38 per cent in average incomes achieved by relocating to New Zealand (Withers 1985) Age family circumstance, education distance and unemployment are the factors of migration.

There are 4 groups: childhood migration, labour force age migration, retirement migration, and a constant level of migration. Age of migrant is recognised as an major variable which explaining differences in migration propensities and choices. Age of migrant is recognised as an important variable explaining differences in migration propensities. The young people group have more willingness to migrate when all else being equal. Migration mobility peaks at around 20-29 years of age. This young age group is probably the most mobile group and most likely to have incentive to migrate by employment.

There two main reasons why young people are likely to migrate. First older people have fewer years to recoup their investment cost. They consider the risk of moving is too high. But young person's view it is a relative small differential to consider. Secondly older people tend to have higher levels of human capital which are specific to their present employers. As we know the longer a person's job tenure, the greater the amount of on-the-job training and investment of a specific variety the worker will contain.