Brain Drain or Brain Exchange?
AbstractThis paper explores the “brain drain” hypothesis – the idea that New Zealand is losing many of its most talented citizens to other countries. We conclude that we are experiencing more of a brain exchange than a brain drain. There have been net outflows of New Zealand citizens for forty years, and we have been replacing those leaving with non-New Zealand citizens. On the basis of the data available, our immigrants appear to be more skilled than our emigrants (and than our general population). But there may be some cause for concern if immigrants cannot get jobs to make use of their skills. Migration flows to and from Australia are different from those with the rest of the world. New Zealand consistently loses its citizens to Australia, but they are not just the highest skilled. Instead, they are representative of the general population of New Zealand. That is, there is no brain drain to Australia either, but what might be called a “same drain”. This is likely to be a consequence of the common labour market. Policy responses could focus on both outflows and inflows. Limited policy levers exist for attracting and retaining New Zealand citizens within the country, other than making the country a more attractive place to work, and live. The key policy issue for inflows is the improvement of the selection, settlement, and integration of immigrants. The paper ends by calling for a more sophisticated debate on immigration and emigration, and a more accurate conception of what will be an ongoing trend – that is, the increasingly free flow of people (including New Zealanders), around the globe.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by New Zealand Treasury in its series Treasury Working Paper Series with number 01/22.
Length: 58 pages
Date of creation: 2001
Date of revision:
Contact details of provider:
Postal: New Zealand Treasury, PO Box 3724, Wellington, New Zealand
Phone: +64-4-472 2733
Fax: +64-4-473 0982
Web page: http://www.treasury.govt.nz
More information through EDIRC
International migration; brain drain;
Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-09-26 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aghion, P. & Howitt, P., 1989.
"A Model Of Growth Through Creative Destruction,"
UWO Department of Economics Working Papers
8904, University of Western Ontario, Department of Economics.
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
- Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
- Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
- Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997.
"A brain gain with a brain drain,"
Elsevier, vol. 55(2), pages 227-234, August.
- Claudia Goldin & Lawrence F. Katz, 1998.
"The Origins Of Technology-Skill Complementarity,"
The Quarterly Journal of Economics,
MIT Press, vol. 113(3), pages 693-732, August.
- Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001.
"Brain drain and economic growth: theory and evidence,"
Journal of Development Economics,
Elsevier, vol. 64(1), pages 275-289, February.
- Michel Beine & Frédéric Docquier & Hillel Rapoport, 2001. "Brain drain and economic growth: theory and evidence," ULB Institutional Repository 2013/10449, ULB -- Universite Libre de Bruxelles.
- Brosnan, Peter & Poot, Jacques, 1987. "Modelling the Determinants of Trans-Tasman Migration after World War II," The Economic Record, The Economic Society of Australia, vol. 63(183), pages 313-29, December.
- Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, vol. 1(1), pages 19-42, April.
- Winkelmann, Rainer, 2000. "Immigration Policies and their Impact: The Case of New Zealand and Australia," IZA Discussion Papers 169, Institute for the Study of Labor (IZA).
- Beine, Michel, 2001. "Brain drain and economic growth: theory and evidence," Open Access publications from UniversitÃ© catholique de Louvain info:hdl:2078/96110, Université catholique de Louvain.
- Peter Bushnell & Wai Kin Choy, 2001. ""Go West, Young Man, Go West!"?," Treasury Working Paper Series 01/07, New Zealand Treasury.
- Wai Kin Choy & David C Mare & Peter Mawson, 2002. "Modelling Regional Labour Market Adjustment in New Zealand," Treasury Working Paper Series 02/01, New Zealand Treasury.
- Myers, Barbara & Pringle, Judith K., 2005. "Self-initiated foreign experience as accelerated development: Influences of gender," Journal of World Business, Elsevier, vol. 40(4), pages 421-431, November.
- Davenport, Sally, 2004. "Panic and panacea: brain drain and science and technology human capital policy," Research Policy, Elsevier, vol. 33(4), pages 617-630, May.
- Dave Maré & Jason Timmins, 2003.
"Moving to Jobs?,"
Labor and Demography
- Nils Bjorksten, 2001. "The current state of New Zealand monetary union research," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 64, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Web and Publishing Team, The Treasury).
If references are entirely missing, you can add them using this form.