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Development through Seasonal Worker Programs: The Case of New Zealand's RSE Program

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  • John Gibson

    () (Waikato Management School)

  • David McKenzie

    () (World Bank)

Abstract

Seasonal worker programs are increasingly seen as offering the potential to be part of international development policy, in addition to the traditional goal of meeting domestic agricultural needs. New Zealand's Recognised Seasonal Employer (RSE) program is one of the first and most prominent of programs designed with this perspective. This chapter provides a detailed examination of this policy through the first six seasons. It begins by outlining the background to the launch of the program, and key features of how the program operates in practice. This includes the important role of policy facilitation measures taken by national governments and aid agencies. The evolution of the program in terms of worker numbers is then discussed, along with new data on the (high) degree of circularity in worker movements, and new data on (very low) worker overstay rates. This is followed by a summary of the impacts of the program on New Zealand workers and employers: there appears to have been little displacement of New Zealand workers, and new data shows RSE workers to be more productive than local labor, and that workers appear to gain productivity as they return for subsequent seasons. The program has also benefitted the migrants participating in the program, with increases in per capita incomes, expenditure, savings, and subjective well-being, with some evidence of small positive spillover benefits to their communities in the form of public goods. Taken together, this evidence suggests that the RSE program is largely living up to its promise of a “triple win†for migrants, their sending countries in the Pacific, and for New Zealand, and that it is one of the most successful development interventions for which rigorous evidence exists. As such, both development and immigration policy can benefit from learning the lessons of this program.

Suggested Citation

  • John Gibson & David McKenzie, 2014. "Development through Seasonal Worker Programs: The Case of New Zealand's RSE Program," CReAM Discussion Paper Series 1405, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  • Handle: RePEc:crm:wpaper:1405
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    References listed on IDEAS

    as
    1. David McKenzie & Pilar Garcia Martinez & L. Alan Winters, 2008. "Who is coming from Vanuatu to New Zealand under the new Recognised Seasonal Employer (RSE) Program?," CReAM Discussion Paper Series 0806, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    2. Danielle Hay & Stephen Howes, 2012. "Australia’s Pacific Seasonal Worker Pilot Scheme: why has take-up been so low?," Development Policy Centre Discussion Papers 1217, Development Policy Centre, Crawford School of Public Policy, The Australian National University.
    3. McKenzie, David & Garcia Martinez, Pilar & Winters, L. Alan, 2008. "Who is coming from Vanuatu to New Zealand under the new recognized Seasonal employer program ?," Policy Research Working Paper Series 4699, The World Bank.
    4. John Gibson & David McKenzie & Halahingano Rohorua, 2008. "How Pro-Poor is the Selection of Seasonal Migrant Workers from Tonga Under New Zealand's Recognised Seasonal Employer (RSE) Program?," CReAM Discussion Paper Series 0807, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    5. John Gibson & David Mckenzie, 2011. "Australia's Pacific Seasonal Worker Pilot Scheme (PSWPS): Development Impacts in the First Two Years," Working Papers in Economics 11/09, University of Waikato.
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    Cited by:

    1. John Gibson & David McKenzie & Halahingano Rohorua & Steven Stillman, 2018. "The Long-term Impacts of International Migration: Evidence from a Lottery," World Bank Economic Review, World Bank Group, vol. 32(1), pages 127-147.
    2. Michael Clemens and David McKenzie, 2014. "Why Don't Remittances Appear to Affect Growth? - Working Paper 366," Working Papers 366, Center for Global Development.
    3. Clemens, Michael A., 2017. "The Effect of Occupational Visas on Native Employment: Evidence from Labor Supply to Farm Jobs in the Great Recession," IZA Discussion Papers 10492, Institute for the Study of Labor (IZA).
    4. Clemens, Michael A. & McKenzie, David, 2014. "Why don't remittances appear to affect growth ?," Policy Research Working Paper Series 6856, The World Bank.

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