23/04/13. Integrating Global Talent in Norway: Statistical Report. Study sponsored by Abelia, Akademikerne, The Research Council, NHO, Tekna and SIU

Transcription

1 23/04/13 Integrating Global Talent in Norway: Statistical Report Study sponsored by Abelia, Akademikerne, The Research Council, NHO, Tekna and SIU

2 For information on obtaining additional copies, permission to reprint or translate this work, and all other correspondence, please contact: DAMVAD damvad.no The study is sponsored by Abelia, Akademikerne, The Research Council, NHO, Tekna and SIU. The opinions and findings contained in the study are solely those of DAMVAD. Copyright INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

3 Contents 1 Introduction and summary of results Characteristics of the international students and PhDs in Norway The students educational profile International students and PhDs access to the Norwegian labour market A profile of the foreign high-skilled workers coming to Norway Profile of students and PhDs leaving Norway The future attraction of global talents to Norway 8 2 What characterise the global talents coming to Norway? Introduction Origin of international students and PhDs More female students, less female PhDs Educational background Settling down in Norway 12 3 Access to and mobility at the Norwegian labour market Introduction Employment sector Employment status and working hours Average income in their first job 17 4 The foreign high-skilled workers coming to Norway Who are the foreign high-skilled workers Access to the Norwegian labour market Average income first year in Norway 24 5 Profile of the international students and PhDs leaving Norway Introduction Origin The singles leave Level and field of education 26 6 Conclusion on the future for global talent in Norway Introduction Meeting the demand for labour in Norway 28 Appendix 1 Approach and methodology Definitions The timeframe of the statistical analysis Population 31 Appendix 2 Data sources and variables 32 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 3

4 1 Introduction and summary of results This report presents the results of a statistical study of foreign students 1, PhDs and foreign highskilled labour in Norway. The statistical study aims at characterising the differences and similarities between foreign students and PhDs and foreign high-skilled labour coming to Norway over the past two decades. We analyse how many of the students and PhDs choose to stay in Norway after graduation to work and live, as compared to how many foreign highskilled workers come to Norway and what characterises the two groups. We also want to identify the mobility of the students (including the PhDs) and the high-skilled labour, in addition to the groups access to the labour market over time. The aim of the study is also to provide an empirical description of the students and PhDs who have graduated in Norway and after that left the country. The study is the third and final part of the project Integrating Global Talent in Norway which has been initiated by the organisations Abelia, Akademikerne, the Research Council of Norway, NHO, Tekna and SIU. The study is the first thorough statistical study of its kind, and we want to thank the sponsoring organisations for initiating this important study. There are many reasons for seeking this kind of quantitative empirical evidence about the characteristics of international students and PhDs. One important reason is that more and more students come to Norway (see FigurE 1.1). 1 If nothing else is stated, foreign students refers to all students with either a Bachelor s degree or a Master s degree FIGURE 1.1 International students and PhDs first year registered in higher education in Norway ) Number of students and PhDs Note 1): Students who have started their studies after 2009 are excluded due to our definition of exchange students (see appendix for a more detailed explanation) 4 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

5 By foreign or international students and PhDs we mean foreigners who have come to Norway with the primary purpose of studying. Exchange students are not the focus of this study. 2 The results of this statistical study are summarised below: Characteristics of the international students and PhDs in Norway 48 pct. of all international students who have come to Norway to study for a degree since 1991 are from other Nordic countries or other countries in the European Economic Area. However, students from Asia and other parts of the world (i.e. Africa, Oceania and South America) also make up a large group (37 pct.). The PhDs are mainly coming from an EEA country (32 pct.) or from Asia (23 pct.). The student group from Asia has experienced a rapid growth, from 11 pct. before 2000 to 33 pct. after In the same period the group of Nordic students has declined almost to the same extent. The sample also covers active and former students and PhDs who have changed their citizenship to Norwegian since Most of the ones who have changed their citizenship were either from Asia, Africa or a European country outside the EEA. There are many more males (63 pct.) than females (37 pct.) who have studied for a PhD degree in Norway since It is quite the opposite for foreign students studying for a Bachelor s or Master s degree. Here the share of males is only 42 pct. 2 See the appendix for a more detailed explanation of the definitions used in this study The students educational profile We observe in total international students and PhDs in our data sample, covering the period Of these have completed a Bachelor s, Master s or PhD degree. The remaining started their education in 2009 or earlier and are still registered as active students. Of the total group of international students (including the PhDs) the share of PhD-level graduates is relatively large (19 pct.). This is a much larger share than for the total group of Norwegian students, with a share of PhDs of only 2 pct. The share of international students who have completed a Master s degree is also relatively high, compared to the Norwegian students where a Bachelor s degree is the preferred level for education for 77 pct. of the students. The distribution among fields of education is not very different between the international students and their Norwegian equals. The international degree students also come to Norway to study a wide variety of disciplines. A majority of the international students study within the fields of Humanities, arts and education and Social sciences, law and business. This is however a different picture for the foreign PhDs. For 59 pct. the preferred field of study is Natural science and technical subjects. This is a much larger share than for the Norwegian PhDs where 38 pct. study Natural science and technical subjects The three most popular universities among the international PhDs are NTNU, UiO and UiB. It is interesting to see that the University of Tromsø is attracting a significant share of the foreign PhDs (10 pct.), and with these four universities we have INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 5

6 accounted for almost 90 pct. of the international PhDs International students and PhDs access to the Norwegian labour market Of the international Bachelor s and Master s students, who have finished their education in the period , or more than 60 pct. still live in Norway of the graduated international students have been employed in Norway for one year or more and were registered as employed in Norway in Of the PhDs in our sample, 932 have been employed in Norway after graduation, whereas 757 were registered as employed in Of the international students, who have been employed in Norway after their graduation, as many as (about 60 pct.) got their first job in the Eastern part of the country, of which more than half were working in Oslo. The second most popular region seems to be the Western part of Norway, and in this region Bergen accounts for approximately 40 pct. and Stavanger 18 pct. Most of the international PhDs get their first job in the same regions as the international students. However, a relatively large share of the PhDs also finds their first job in Trøndelag (the Middle part of Norway). This is the same region as NTNU is located. Oslo accounts for about 66 pct. of the PhDs who get their first job in the Eastern part of Norway, Bergen 71 pct. and Stavanger 14 pct. of the ones in the Western part and Trondheim 95 pct. of the PhDs who get their first job in Trøndelag. Most of the foreign students (between 58 and 63 pct.) find their first job within the public sector, primarily in the health sector or within teaching and education. The other large employment sector for international students is communication and support service activities. Between 20 and 22 pct. find their first job in this sector. Both the public sector and the communication and support service sector have seen an increase in the employment of foreign students over the last two decades. At the same time there has been a steady decrease in the employment of foreign students in other private sectors, i.e. industry, trade, accommodation and food service. For the foreign PhDs we see a similar picture. In the three time periods the share of PhDs employed in the public sector varies between 54 and 62 pct. A closer look at the public sector showed that most of the international students were (or are) employed within the health sector. Of the international PhDs employed in the public sector, more than 60 pct. got their first job within teaching and education. The PhDs working within this sector are working in the four cities Tromsø, Trondheim, Bergen and Oslo. A slightly higher share of the international PhDs got their first job in the industry sector, compared to the Bachelor s and Master s students. However, here the decrease in this sector s share is larger, that is from 11 pct. in 2002 to 4 pct. in In addition, we observe that the increase in the public sectors inclusion of foreign PhDs especially takes place within the health sector, which increased its share of the public sector employees from 22 to 27 pct. in the period between 1998 and The employment structure of the foreign PhDs graduating in Norway is much thinner than for the international students. Several big private sectors have had employment of foreign PhDs in such a small scale that it is not even possible to register. This is the case for construction, domestic trade, 6 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

7 accommodation and food service activities and transportation sectors. For the students and PhDs who got their first job after graduation in the period between 2003 and 2010 we are able to check the educational requirement of their occupation. We find that 72 pct. of the international students and 94 pct. of the PhDs have occupations that require higher education in their first year as employed after graduation. Looking at the full-time employees, it seems that international students tend to earn more than Norwegian students in their first job, whereas Norwegian PhDs earn more than their international colleagues in their first job. If we look at the average income one year after first employment we see that the international students still have a higher income on average than the Norwegian students. By the same measure, the Norwegian PhDs still earn more than the foreign PhDs. Our results imply that the income gap between the two groups narrow over time. After five years their yearly income is almost at the same level. Looking at the difference in income between the same two groups (excluding employees with a Bachelor s degree) with respect to field of education, we see that Norwegian students with an education in humanities, arts or education are the only ones who have a higher income than the international students one year after first employment. For both groups of students the income varies with educational background and it is on average highest for the employees with an education in health, welfare or sports. The difference between the international and Norwegian students is largest for the ones with an education in health, welfare or sports. We also observe that the difference is relatively large for the graduates with an educational background from natural science or technical subjects A profile of the foreign high-skilled workers coming to Norway The study shows that there has been a steep increase in the number of foreign high-skilled workers coming to Norway to work since 2003 (from 560 individuals in 2003 to individuals in 2010). The large majority of the foreign high-skilled workers coming to Norway are from Nordic and EEA-countries. Compared with the origin of the international students and PhDs, we do not see the same tendency here that foreign high-skilled workers come from Asia. The large majority of the foreign high-skilled workers are men and most of them are not married. We do not see the same unequal distribution among the international students and PhDs. The foreign high-skilled workers live and work in more or less the same parts of Norway as the international students who have graduated in Norway. The foreign high-skilled workers, on average, tend to work more than the international students and PhDs. Foreign high-skilled workers with an occupational status as professionals or technicians and associate professionals have a higher income on average than the international Master s and Bachelor s graduates taking their first Norwegian job, but a much lower income than the international and Norwegian PhDs Profile of students and PhDs leaving Norway Of the international Bachelor s and Master s students, who have finished their education in Norway in the period , have left INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 7

8 Norway. And of a total of international PhDs, who have finished their education in Norway in the same period, a little more than half or persons have left Norway. The largest groups of international graduates that have left Norway after their studies come from countries in Africa, South America and Oceania. A larger share of the students from these countries leaves Norway than their share of the students coming to Norway. The share of students that leaves after graduation is much larger within the group of singles. There is also a relatively larger share within the group of Master s and PhD degree students that are leaving than in the group of Bachelor s. A larger share within the group of natural science students are leaving than in the other fields of study. The majority of the international students and PhDs that have left Norway have never been employed in Norway after graduation. Further, Norway has invested in the international students by offering them an education, and the students have already spent years getting familiar with the Norwegian society and hopefully socialising with Norwegians. As such the internationals students should be easier to integrate in the work force as global talents. Thus, it will make good sense to focus more on getting these students to stay in Norway instead of primarily prioritising the inflow of foreign high skilled labour, who will have a longer period of adapting to Norwegian way of working and living as oppose to the students who have been here at least for two years The future attraction of global talents to Norway Whereas the level of international students getting a job after graduation in Norway has increased with a factor three from 2003 to 2010, the level of foreign high skilled workers has increased with a factor seven. As such there are more than three times as many foreign high skilled workers getting a job in Norway in 2010 compared to international students. There is thus a large potential in having more international students joining the work force in Norway after their graduation. One could also ask if it would be a better investment to have more international students staying on and work in Norway after graduation than having to search abroad for high skilled workers. 8 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

9 2 What characterise the global talents coming to Norway? 2.1 Introduction In this chapter we want to use the statistical (register-based) data to look more into what characterise the foreign students and PhDs who have come to Norway during the last two decades Origin of international students and PhDs The statistical data shows that most international students who come to Norway to study for a degree are from other Nordic countries or other countries in the European Economic Area (EEA). However, students from Asia and other parts of the world (i.e. Africa, Oceania and South America) also make up a large group. TABLE 2.1 Origin of international students and PhDs Region 1) Number of Pct. students Nordic countries EEA countries Other European countries North America Asia Other Total The PhDs are mainly from an EEA country or Asia. In addition, one fifth of the PhDs are from other continents such as Africa and South America. TABLE 2.2 Origin of international students and PhDs who have completed a degree. Percent Region 1) Students N=5 820 PhDs N=1 765 Nordic countries EEA countries Other European countries 12 7 North America 4 3 Asia Other Total Note 1): The regions are mutually exclusive Studying the changes in origin of the international students over time it becomes clear that especially the student group from Asia has experienced a rapid growth, from 11 pct. before 2000 to 33 pct. after In the same period the group of Nordic students has declined by almost the same extent. The changes in the other groups (EEA, Other European, North America and Other) have been fairly modest (see FigurE 2.1 on the next page). Note 1): The regions are mutually exclusive More than half of the international students, who have completed a degree 4, are from a Nordic country (excluding Norway) or other EEA countries. For the foreign PhDs, who also have completed a degree the picture is somewhat different. 3 Our data covers the period from 1991 to We cannot say with certainty that they have completed their degree in Norway INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 9

10 FIGURE 2.1 Changes in origin over time. 1) Percent ) TABLE 2.3 Origin of international students and PhDs who now are Norwegian citizens Region 1) Number of Pct. students Nordic countries 97 3 EEA countries Other European countries North America 6 0 Asia Other Total Before 2000 (N=2844) (N=6340) (N=2319) Note 1): Based on when they have started their studies in Norway Note 2): Students who have started their studies after 2009 are excluded due to our definition of exchange students (see appendix for a more detailed explanation) In addition to the international students and PhDs who still are foreign citizens (cf. Feil! Fant ikke referansekilden.) our sample covers active and former students and PhDs who have changed their citizenship to Norwegian. Most of the ones who have changed their citizenship were either from Asia, Africa (included in the group other ) or a European country outside the EEA prior to becoming Norwegian citizens. Note 1): The regions are mutually exclusive 2.3 More female students, less female PhDs It is interesting to observe that there are many more males than females who study for a PhD in Norway. It is quite the opposite for foreign students studying for a Bachelor s or Master s degree. TABLE 2.4 Sex and marital status of the international students and PhDs who have completed a degree. Percent Students N=8 309 PhDs N=2 003 Share male Share female Share single 1) Share married 1) Note 1): For the variable marital status N=8 002 for students and N=1 821 for PhDs. Share of single and married does not sum up to 100 due to excluded categories When it comes to marital status this is the international students and PhDs marital status the year of graduation. For both groups the share of married 10 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

11 individuals is slightly higher than the share of singles. Among the Norwegian students about 75 percent are still single when they graduate compared to 51 percent of the Norwegian PhDs. 2.4 Educational background We observe in total international students and PhDs in our data, of which have completed a Bachelor s, Master s or PhD degree. The remaining started their education in 2009 or earlier and are still registered as active students. 5 It is especially interesting to observe that of the total group of international students (including the PhDs) the share of PhD-level graduates is relatively large (19 pct.). This is much larger than for the total group of Norwegian students. Compared to the Norwegian students the share of international students who have completed a Master s degree is also relatively high. TABLE 2.5 Level of education for international students and PhDs who have completed a degree. Percent Level of education Bachelor s degree International N= Norwegian N= Master s degree PhD 19 2 Total The international degree students come to study a wide variety of disciplines. A majority of the international students study within the fields of Humanities, arts and education and Social sciences, law 5 We cannot tell whether they graduated in 2011 or not since that is the last year in our data and business. The distribution among fields of education is not very different between the international students and their Norwegian equals. Looking closer at the latter group it turns out that 57 percent of the students in this group have studied business and administration. For about 70 percent of the students within business and administration a Bachelor s degree is their highest level of education. The rest of the group Social sciences, law and business is to a large extent covered by the social sciences political science and economics and 60 percent of these students have a Master s degree. TABLE 2.6 Field of education for international students and PhDs who have completed a degree. Percent Education (groups) Natural science and technical subjects Social sciences, law and business Health, welfare and sports Humanities, arts and education Students N=8 309 PhDs N= Other 4 4 Total For the foreign PhD-students the preferred field of study is Natural science and technical subjects followed by Health, welfare and sports. The share of international PhDs within the former group is much higher than the share of Norwegian PhDs within the same group (38 pct.). Of the 59 percent who have a PhD in Natural science and technical subjects about one fifth have a PhD in biology, physics or chemistry, whereas 15 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 11

12 percent (about 200 individuals) have a PhD in technical subjects (e.g. mechanical engineering). Of the 440 international PhDs (22 pct.) who have a degree within Health, welfare and sports approximately 90 percent have a medical degree (77 pct.) or a dentistry degree (12 pct.). The three most popular universities among the international PhDs are NTNU, UiO and UiB. 6 It is also interesting to see that the University of Tromsø is attracting many foreign PhDs (10 pct.), and with these four universities we have accounted for almost 90 percent of the international PhDs. For the international students it is interesting to note that most of them obtain a Bachelor s or Master s degree from the University of Oslo (22 pct.) or they are distributed widely across different Norwegian universities and university colleges (56 pct.). FIGURE 2.2 Educational institutions for international students and PhDs who have completed a degree. Percent Settling down in Norway Most of the students and PhDs who settle down and take on their first job in Norway do so in the Eastern part of Norway (including Oslo). This is especially the case for the international students. Of the international students, who have been employed in Norway at one point in time after graduation, as many as (about 60 pct.) got their first job in the Eastern part of the country, of which more than half were working in Oslo. The second most popular region seems to be the Western part of Norway, and in this region Bergen accounts for approximately 40 percent and Stavanger 18 percent. Among the international PhDs most get their first job in the same regions as the international students. However, a relatively large share of the PhDs finds their first job in Trøndelag (the Middle part of Norway). This is the same region as NTNU is located. Oslo accounts for about 66 percent of the PhDs who get their first job in the Eastern part of Norway, Bergen 71 percent and Stavanger 14 percent of the ones in the Western part and Trondheim 95 percent of the PhDs who get their first job in Trøndelag (see FigurE 2.3 on the next page) NTNU UiO UiB UiT UMB Other Students (N=8206) PhDs (N=2003) 6 Norwegian University of Science and Technology, University of Oslo and University of Bergen 12 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

13 FIGURE 2.3 Parts of Norway where international students and PhDs take their first job after graduation. Percent East West North Middle (Trøndelag) South (Agder) Students (N=5033) PhDs (N=932) INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 13

14 3 Access to and mobility at the Norwegian labour market 3.1 Introduction In this chapter we analyse how many of the international students and PhDs stay in Norway after they graduate and their access to and mobility at the job market. Of the international Bachelor s and Master s students, who have finished their education in the period , have no emigration date. That is, more than 60 percent of these students still live in Norway. Regardless of whether they have left Norway or not, of the graduated international students have been employed in Norway for one year or more and were registered as employed in More than half of the international PhDs in our sample have left Norway. Out of the PhDs in our sample, 932 have been employed in Norway after graduation, whereas 757 were registered as employed in Employment sector In this section we will present in which sectors the international students and PhDs got their first job after graduation. Our sector groups are based on the Standard Industry Classifications SIC94, SIC2002 and SIC2007. Of the international students and PhDs, 248 were employed before These individual are not included below due to too few observations within most of the sector groups. 7 This is the last year in the employment statistics 8 Of the who have emigrated 121 did so in 2011 TABLE 3.1 Sector of first job in Norway for international students. Percent Employed between Sector (groups) N=782 Employed between N=1 926 Employed between N=2 100 Primary industry Industry and more Construction 1 1 Domestic trade and more Accommodation and food service activities Transportation Communication and support service activities IKT services (share of communication etc.) Other (share of communication etc.) Public administration and more Education (share of public) Human health (share of public) Other (share of public) INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

15 As illustrated in Table 3.11, the statistical analysis shows that most of the foreign students (between 58 and 63 pct.) who stay on in Norway to work after graduation find their first job within the public sector, primarily in the health sector or within teaching and education. subsector in Table The rest of the employees within communication and support services are distributed among several other sectors, such as architectural activities, research and development, post and telecommunications, labour recruitment of personnel and industrial cleaning. The other large sector for international students to find their first job is communication and support service activities (between 20 and 22 pct.). Looking closer at this sector group in the period between 1998 and 2007 it is apparent that computer and related services and other business activities accounts for about 75 percent of the individuals who were employed in communication and support service activities. However, we only emphasize on IKT services as a Both the public sector and the communication and support service sector have seen an increase in the employment of foreign students over the last two decades. At the same time there has been a steady decrease in the employment of foreign students in other private sectors, i.e. industry, trade, accommodation and food service, etc. For the foreign PhDs we see a similar picture. In the three time periods the share of PhDs employed in the public sector varies between 54 and 62 per- TABLE 3.2 Sector of first job in Norway for international PhDs. Percent Employed between Sector (groups) N=112 Employed between N=376 Employed between N=421 Primary industry Industry and more Construction Domestic trade and more Accommodation and food service activities 0 Transportation 0 0 Communication and support service activities IKT services (share of communication etc.) R&D (share of communication etc.) Other (share of communication etc.) Public administration and more Education (share of public) Human health (share of public) Other (share of public) INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 15

16 cent. A closer look at the public sector showed that most of the international students were (or are) employed within the health sector. Of the 421 PhDs, who got their first job between 2008 and 2010, about 30 percent of the international PhDs (employed in the public sector) were employed in the same sector. Of the international PhDs employed in the public sector, more than 60 percent got their first job within teaching and education. The PhDs working within this sector are working in Tromsø, Trondheim, Bergen and Oslo. A slightly higher share of the international PhDs got their first job in the industry sector, compared to the Bachelor s and Master s students. However, here the decrease in this sector s share is larger, that is from 11 percent in 2002 to 4 percent in In addition, we observe that the increase in the public sectors inclusion of foreign PhDs especially takes place within the health sector, which increases its share of the public sector employees from 22 to 27 percent in the period between 1998 and It should be noted that the employment structure of the foreign PhDs graduating in Norway is much thinner than for the international students. It is interesting to see that several big private sectors have had employment of foreign PhDs in such a small scale that it is not possible to register here. This is the case for construction, domestic trade, accommodation and food service activities and transportation sectors. For the students and PhDs who got their first job after graduation in the period between 2003 and 2010 we are able to check the educational requirement of their occupation. This will to some degree tell us whether they use their education or not. The categories professionals and technicians and associate professionals in Table 3.3 requires at least a Bachelor s degree (i.e. education from either a university college or university). Adding up these two categories we see that 72 percent of the international students and 94 percent of the PhDs have occupations that require higher education their first year as employed after graduation. TABLE 3.3 Occupational status of first job in Norway for international students and PhDs. Percent Classification of occupation 1) Students N=2 928 PhDs N=686 Managers (CEOs etc.) 4 1 Professionals Technicians and associate professionals 38 9 Clerks 6 Sales and service occupations Agricultural, forestry and fishery workers Artisans 1 0 Machine operators etc. Elementary occupations Total Note 1): Missing observations occur for this variable, thus the number of students and PhDs does not sum up to all who were employed between 2003 and 2010 A smaller share of the Norwegian students has an occupational status as professionals (24 pct.), 16 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

17 whereas a slightly higher share of the Norwegian PhDs has this status (87 pct.), compared to the international graduates. Approximately 45 percent of the Norwegian graduates with a Bachelors or Masters degree are employed as technicians and associate professionals in their first job. 3.3 Employment status and working hours In the next section we have chosen to focus on the international and Norwegian graduates who work full-time (more than 30 hours per week) and who have a status as employed (as opposed to selfemployed ). and PhDs has a full-time job their first year as employed after graduation. 9 The table below show the distribution in working hours for the international students and PhDs. TABLE 3.4 Working hours per week in their first job. Percent Working hours Students N=5 017 PhDs N= hours hours or more hours Total FIGURE 3.1 Socioeconomic status of international students and PhDs one year after graduation. 1) Percent Students (N=5028) Others Retirees and pensioners PhDs (N=932) Self-employed other industries Self-employed primary industry Employed 3.4 Average income in their first job Through the statistical study we have also analysed the average income that foreign and Norwegian students and PhDs earn in their first job after graduation. Our income measure covers working income, as well as net entrepreneurial income and some social benefits. As a consequence of this, we have chosen to limit our sample to only employees in this section (as mentioned in the previous section). Looking at the full-time employees, it seems that international students tend to earn more than Norwegian students in their first job, whereas Norwegian PhDs earn more than their international colleagues in their first job (see Table 3.5 on the next page). Compared to the Norwegian students and PhDs a slightly smaller share of the international students 9 The first year as employed after graduation can be no earlier than the year after the last year as an active student, i.e. if they graduate in 2000 we count their job in 2001 as their first job (if employed in 2001) INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 17

18 TABLE 3.5 Average income in first job for international and Norwegian students. 1) In NOK (at constant 2012 prices) International graduates Norwegian graduates Bachelor s degree Master s degree PhD degree Note 1): To balance the data we have removed the bottom 5 and top 5 percent of the income variable before calculating the mean TABLE 3.6 Average income one year after first employment for international and Norwegian students. 1) In NOK (at constant 2012 prices) Bachelor s degree International graduates Norwegian graduates Master s degree PhD degree Note 1): To balance the data we have removed the bottom 5 and top 5 percent of the income variable before calculating the mean If we look at the average income one year after employment we see that the international students still have a higher income on average but that the level of all students income is higher (cf. Table 3.6). Still the Norwegian PhDs earn more than the foreign PhDs. The results in Table 3.5 show that the international students with a Master s degree on average actually earn less than the ones with a Bachelor s degree in their first job. However, there are reasons to believe that the figures presented in the table below are more reliable and that the Master s students in fact have a higher starting salary. 10 If we look at median income one year after employment for international and Norwegian graduates across educational level the picture is mainly the same, only the difference between international Masters and Norwegian Masters students is somewhat smaller and the difference between the PhDs larger. For all groups the median income is lower than the average. Section 2.4 showed that the international students on average have a higher level of education than the Norwegians. Thus, when we now go on to look at the development in income over time we have chosen to exclude the Bachelor s students in order to make the two groups more similar with respect to educational level One plausible explanation for the changes in the level of income is that the graduates do not work the whole year in their first job after graduation. Part of the differences in the income level between the two periods may also be due to regular raises 11 The two groups are still not perfectly comparable due to a higher share of individuals with a PhD degree among the international students. Of the foreign students who either have a Master s or PhD degree (and are or have been working in Norway) 35 percent are PhD-level graduates, whereas 7 percent of the Norwegian students (Bachelor s students excluded) have the same level of education 18 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

19 FIGURE 3.2 Development in average income for graduated international and Norwegian Master s and PhD students. 1) In NOK per year (at constant 2012 prices) year after employment International students 3 years after employment 5 years after employment Norwegian students Note 1): To balance the data we have removed the bottom 5 and top 5 percent of the income variable before calculating the mean We can see that the foreign students start out with a higher income on average than their Norwegian equals, but also that the gap between the two groups narrow over time. After five years their yearly income is almost at the same level. Looking at the difference in income between the same two groups (i.e. still excluding employees with a Bachelor s degree) with respect to field of education, we see that Norwegian students with an education in humanities, arts or education (and Norwegian graduates in the category other ) are the only ones that have a higher income than the international students one year after employment. In addition to being the education category where the income is on average highest, the difference between the international and Norwegian students is largest for the ones with an education in health, welfare or sports. TABLE 3.7 Average income one year after first employment for international and Norwegian Master s and PhD students, after educational background. 1) In NOK (at constant 2012 prices) Natural science and technical subjects Social sciences, law and business Health, welfare and sports Humanities, arts and education International graduates Norwegian graduates Other 2) Note 1): To balance the data we have removed the bottom 5 and top 5 percent of the income variable before calculating the mean Note 2): Average income for international students in this category is based on 32 observations (i.e. a relatively small group) As we will show later, the majority of the international students and PhDs who leave Norway have never been employed in Norway after graduation. Further, most of the graduates who stay get a job within one year after graduation. One may be concerned that there is some kind of selection bias in the income figures presented in this chapter, meaning that the international graduates we observe working in Norway after graduation are substantially different from the Norwegian graduates with respect to individual characteristics (e.g. abilities etc.). For both groups of students the income varies with educational background and it is on average highest for the employees with an education in health, welfare or sports. If we only compare average income for those graduates that got a job within one year after com- INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 19

20 pleting their studies, the picture is still the same as in Table The relative difference in average income varies if we divide the graduates into groups depending on when they get their first job and if we look at average incomes across sectors. However, it seems that regardless of how we choose to divide the graduates into groups, the international Bachelors and Masters students have a slightly higher average income than their Norwegian counterparts. It is important to emphasise that what we present in these tables are simply summary statistics, and that they do not explain the differences we observe. One cannot conclude from this that being an international graduate, working in Norway, itself leads to higher income. There is reason to believe that the foreign students coming to Norway to take a degree are in many aspects different than the Norwegian students studying in Norway. However, we do not have any measures of ability (e.g. grades, IQ etc.) and controlling for all this requires a far more extensive analysis. 12 The share of international and Norwegian graduates that got a job within one after graduation is approximately the same. 20 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

21 4 The foreign high-skilled workers coming to Norway 4.1 Who are the foreign high-skilled workers In the previous chapter we used the occupational status of the graduates to see if they have relevant occupations with respect to their level of education. By using this variable we can also identify foreigners who have come to Norway to work and that assumingly have a higher education. In this chapter we will look at what characterise the foreign high-skilled work force, defined as the part of the foreigners with an occupational status as managers, professionals or technicians and associate professionals. In addition, we have only focused on the individuals who get a job the same year as they are coming to Norway. FIGURE 4.1 Occupational status of the foreign high-skilled labour force in Norway. 47 % 8 % 45 % The variable occupational status is only available from 2003 to 2010 in our data. As illustrated in FigurE 4.2 below there has been a steep increase in the number of foreign high-skilled workers coming to Norway to work since 2003 (from 560 in 2003 to individuals in 2010). FIGURE 4.2 Year of immigration for foreign high-skilled workers in Norway Number of foreign high-skilled workers Managers (CEOs etc.) (N=1303) Professionals (N=7455) Technicicians and associate professionals (N=7636) We see that about half of these workers are either occupied in a position that normally requires at least four years of higher education ( professionals ) or as managers. The large majority of the foreign high-skilled workers coming to Norway are from Nordic and EEAcountries. Compared with the origin of the international students and PhDs, we do not see the same tendency here that foreign high-skilled workers come from Asia, although 9 per cent come from this region. A small group of the foreign highskilled workers included in our sample are now Norwegian citizens. INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 21

22 TABLE 4.1 Origin of foreign high-skilled workers in Norway Region 1) Number of Pct. workers Now Norwegian citizens 76 0 Nordic countries EEA countries Other European countries North America Asia Other Total Note 1): The regions are mutually exclusive We find that the majority of the foreign high-skilled workers are men and that most of them are not married. We do not see the same unequal distribution among the international students and PhDs. TABLE 4.2 Characteristics of foreign high-skilled workers in Norway. Percent Foreign high-skilled workers N= Share male 65 Share female 35 Share single 1) 61 Share married 1) 35 Note 1): This is based on their marital status one year after immigration. Share of single and married does not sum up to 100 due to excluded categories We see that the share of foreign high-skilled workers who settle down in this region is almost as high (54 pct.). However, a larger share of the foreign workers settles down in the Western part of the country (29 pct. versus 20 pct. for the international students). FIGURE 4.3 Region of residence for foreign high-skilled workers in Norway. Per cent. East West Middle (Trøndelag) North South (Agder) Access to the Norwegian labour market In the coming two sections we will look at in what sectors the foreign high-skilled workers get their first job when coming to Norway and their income. Again, when we report the average income for the different groups of foreign workers we limit our sample to the ones who work full-time. It seems that the foreign high-skilled workers, on average, tend to work more than the international students and PhDs in their first job. The data shows that the foreign high-skilled workers live and work in more or less the same parts of Norway as the international graduates. Of the international students and PhDs 59 percent got their first job in the Eastern part of Norway (including Oslo). 22 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

23 TABLE 4.3 Working hours per week in their first job. Percent Number of Pct. workers 1-19 hours hours or more hours Total Regardless of occupational status, our data show that the foreign high-skilled workers coming to Norway finds work in a larger variety of sectors than the graduated international students and PhDs. More than half of both the international students and PhDs got their first job within the public sector. This is not the case for the foreign highskilled workers. We see that the workers with an occupational status as managers etc. tend to work in different sectors than the two other groups ( professionals and technicians ). About half of the professionals come here to work in the private support service sector and that a significant share of these individuals is employed in engineering activities (technical testing and analysis). Further, the share of foreign high-skilled workers within the industry sector, transportation and domestic trade is much higher than what we observed for the international graduates. TABLE 4.4 Sector of first job for foreign high-skilled workers in Norway. Percent Sector (groups) Managers (N=1303) Professionals (N=7455) Technicians and associate professionals (N=7636) Primary industry Industry and more Petroleum and gas (share of industry) Other (share of industry) Construction Domestic trade and more Accommodation and food service activities Transportation Communication and support service activities Engineering 1) (share of communication etc.) Other (share of communication etc.) Public administration and more Education (share of public) Human health (share of public) Culture and sports (share of public) Other (share of public) Note 1): Shortening for the sector Architectural and engineering activities; technical testing and analysis. INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 23

24 Of the foreign high-skilled workers in the industry sector, between 21 and 53 percent got their first job in Norway in the sector Extraction of crude petroleum and natural gas and we see that the share of foreign workers in this sector is highest for those who workers occupied in a position that normally requires at least four years of higher education ( professionals ). 4.3 Average income first year in Norway Looking at the income the foreign high-skilled workers get the year they come to Norway we see that the difference between professionals and technicians is not large, whereas the ones occupied in a managerial position have a much higher income on average. employed after graduation it is clear that the foreign workers, with assumingly the same level of education, on average have a higher starting salary. 13 This also holds if we compare average income one year after first employment. Apart from the managers the foreign high-skilled workers have a lower income than the international PhD-level graduates in their first job in Norway. However, this changes after one year. Looking at average income for the foreign high-skilled workers one year after their first employment in Norway (figures not presented here) it is much higher than what the foreign graduates earn, regardless of educational level. FIGURE 4.4 Average income first job in Norway for the foreign high-skilled workers. 1) In NOK (at constant 2012 prices) Managers Professionals Technicians and associate professionals Average yearly income Note 1): To balance the data we have removed the bottom 5 and top 5 percent of the income variable before calculating the mean 13 An occupational status as professional normally requires higher education of a minimum length of 4 years (e.g. approximately equivalent to a Master s degree), whereas technicians and associate professionals includes occupations that normally require 1-3 years of higher education (e.g. comparable to a Bachelor s degree) Compared to the income the international Bachelor s and Master s students earn their first year as 24 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

25 5 Profile of the international students and PhDs leaving Norway 5.1 Introduction The aim of this part of the study is to characterise the international students and PhDs who have graduated in Norway and who are no longer living in Norway. The statistical study tells us that of a total of international Bachelor s and Master s students, who have finished their education in Norway in the period , have left Norway. Of a total of international PhDs, who have finished their education in Norway in the same period, about half or have left Norway. FIGURE 5.1 Number of years employed after graduation before leaving Norway. Percent 0 years from these countries leaves Norway than their share of students who come to Norway. For Asia, the Nordic countries and the rest of Europe (both EEA countries and other European countries) it is the same share coming and leaving or a larger share coming than leaving. FIGURE 5.2 Origin of international graduates who has left Norway versus international students coming. Percent Other Nordic countries Asia EEA countries Other European countries North America year 2 years Leaving Coming 3 years or more PhDs (N=1053) Students (N=2976) FigurE 5.1 show that the majority of the students and PhDs who have left have never been employed in Norway after graduation. 5.2 Origin The largest group of international graduates who have left Norway come from countries in Africa, South America and Oceania, i.e. countries in the group other. In fact a larger share of the students INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 25

26 5.3 The singles leave We saw that the majority of the foreign high-skilled workers coming to Norway were single (or at least not married). Looking at the marital status of the graduates who leave Norway it is apparent that most of them are single. One interpretation of this is that singles are more mobile. FIGURE 5.3 Level of education for all foreign graduates versus graduates who have left Norway. Percent TABLE 5.1 Characteristics of graduates who have left Norway. Percent Graduates who have left N=4 029 Share male Share female 46 Share single 1) 63 Share married 1) 34 0 Bachelor's degree Master's degree PhD Note 1): Share of single and married does not sum up to 100 due to excluded categories International students (total) Leavers 5.4 Level and field of education If one compares the data for all the international students who have graduated with the students who have left Norway after graduation it is clear that a larger share within the group of Master s and PhD degree students are leaving. About half of the graduated foreign students have either a Master s degree or a PhD degree and these two groups of s make up 67 percent of the graduates who have left. A smaller share of students in the group of Bachelor s is leaving after graduation. Looking at the field of education for all the international students who have graduated and those who leave Norway after graduation, it is clear that a larger share of the students with a degree in natural science or technical subjects leave. 26 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

27 FIGURE 5.4 Field of study for all foreign graduates versus graduates who have left Norway. 1) Percent International students (total) Leavers Note 1): See previous tables for a full description of subjects within each group INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 27

28 6 Conclusion on the future for global talent in Norway 6.1 Introduction In this section we discuss briefly the future for global talents in Norway. We do so by focusing on the employment of both international students and foreign high skilled workers in Norway from early in the 2000s and up till There is a growing need for inflow of labour in Norway. Every half year NAV (labour and welfare department) publishes its work force analysis and the conclusion seems to be the same each time. There is a need for inflow of labour to Norway. In the autumn of 2007 the analysis showed that 14 percent of the companies expected to hire new foreign workers. Last year foreigners were registers as workers in Norway, and still there is a need for inflow of labour. FIGUR 6.1 Number of graduating international students who get a job in Norway Number of students 6.2 Meeting the demand for labour in Norway One way of meeting the demand for labour is by hiring graduating international students. Figure 6.1 show that the number of international students who get a job in Norway after graduation has increased significantly the past decade. Whereas in 2003 about 300 of the graduating international students were rewarded with a job, the figure has risen to almost in Previously, in Chapter 4 (Figure 4.2) we described how the level of foreign high skilled workers has risen from around 500 in 2003 to in In other terms, the level of foreign high skilled workers has 7 doubled from 2003 to Both international students and foreign high skilled workers are channels of meeting the demand for labour in Norway. But whereas the level of international students getting a job after graduation have increased with a factor three from 2003 to 2010, the level of foreign high skilled workers have increased with a factor seven. As such there are more than three times as many foreign high skilled workers getting a job in Norway in 2010 compared to international students. 28 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

29 There is thus a large potential in having more international students joining the work force in Norway after their graduation. One could also ask if it would be a better investment to have more international students staying on and working in Norway after graduation than having to search abroad for high skilled workers. Further, Norway has invested in the international students by offering them an education, and the students have already spent years getting familiar with Norwegian society and hopefully socialising with Norwegians. As such the internationals students should be easier to integrate in the work force as global talents. It will make good sense to focus more on getting these students to stay in Norway instead of primarily prioritising the inflow of foreign high skilled labour, who will have a longer period of adapting to Norwegian way of working and living as oppose to the students who have been here at least for two years. INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 29

30 Appendix 1 Approach and methodology The statistical study focuses on foreign students and doctoral students and compares the characteristics of these two groups with the group of foreign high-skilled labour. Below we go through the main questions and clarifications in regard to methodology, approach and definitions Definitions The definition of foreign students has traditionally been associated with some challenges. One of the challenges is that since 2009 persons from EU/EEA countries have not been obliged to apply for residence in Norway to be able to study. This means that there can be no precise data on how many foreign students from EU/EEA countries precisely are staying in Norway after A classic way to identify the foreign students would be through their citizenship as such. However, this is not sufficient since this would then also include persons who are born and raised in Norway, but still have the nationality of their parents for various reasons. This category of students will not be the focus of the analysis and therefore there is a need for a different and more valid registration of foreign students. The following criteria are thus set up to ensure that the foreign students have come to Norway to study and have not lived in Norway for large parts of their lives. Also we want to make sure that they are students at higher levels of education that matches the term global talents. Finally, the definition should make sure that foreign students are not only exchange students studying one semester in Norway before they go back to Norway. The following definition applies: as active student in Norway (sometime between 1991 and 2011) at level 6, 7 or 8 14 The person must be a foreign citizen and have moved to Norway maximum one year before starting the education. 15 By imposing the latter restriction we can assume that they came with the primary purpose of studying The person must not be an exchange student, i.e. the person must be registered for more than two periods in the education statistics Based on the above definitions, the international students and PhDs can be identified. The definition of foreign high-skilled workers is the following: The person must be a foreign citizen The person must have an occupational status as either manager, professional, technician or associate professional The person must be employed in Norway the same year as coming to Norway In this study we look at the international students and PhDs transition from education to employment. We have chosen to say that one is graduated the last year one appears as active student in the educational statistics, thus we have not analysed the transition from education to employment in periods where they have taken a break from their education. Further, the part of the analysis that looks at sector of first job and income earned the first year as employed uses the first job one year after graduation. The person must be enrolled at a Norwegian institution at least at a university/university college-level, i.e. the person must be registered 14 Level 6: University or university college, lower level; Level 7: University or university college, higher level; Level 8: PhD 15 Some of the individual in our sample are now Norwegian citizens but the definition applied when they first came to Norway. In our data we can see their citizenship prior to the change of citizenship 30 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

31 The share of full-time employees increases significantly when using this definition of first job after graduation The timeframe of the statistical analysis Some individuals appear more than once in the data (duplicates). In these cases we have chosen to combine the information in the duplicates and only keep one. The data set used in this study covers the years from 1991 to Due to our definition of international students and PhDs the period between 1993 and 2010 is the relevant period for most of the analysis. Students and PhDs only registered as active students in 1991 and 1992 will be excluded as a consequence of the restriction on the number of years as an active student in Norway. The students and PhDs registered as active in 2011 may have graduated in 2011 but we do not know their status in 2012 and they are not included in our sample. As can be seen in Appendix 2 the last year in the employment statistics is Thus, if a student or PhD graduated in 2010 we cannot say anything about his or hers transition into the labour market. The variable occupational status only covers the period from 2003 to 2010, thus the analysis of the foreign high-skilled workers is based on a shorter period of time than the analysis of the international students and PhDs Population Our data combines three types of statistics from Statistics Norway: The population statistics, the education statistics and the employment statistics (see Appendix 2 for a detailed list of variables in each statistic). INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM 31

32 Appendix 2 Data sources and variables Population statistics Time period: Date of reference: January 1 st each year Number of observations: Variables: Sex Citizenship (now) First citizenship (prior to becoming a Norwegian citizen) Country of birth Year of birth Year of death Immigration year Emigration year Marital status (each year) Family structure (each year) Socioeconomic status (each year until 2010) Income (each year from ) Employment statistics Time period: Date of reference: One week in November each year Number of observations: in 1991 up to in 2010 Variables: Municipality of work (each year) Employment status (each year) Sector (SIC-code each year) Occupational status (each year from 2003) Working hours per week (each year) Education statistics Time period: Date of reference: October 1 st each year Number of observations: Variables: First time registered in higher education On-going education (each year) Educational institution for on-going education (each year) Municipality for on-going education (each year) Completed education (each academic year) Educational institution for completed education (each academic year) Municipality for completed education (each academic year) Outcome of completed education (each academic year) Exchange status (incoming or outgoing exchange student at October 1 st in the period ) 32 INTEGRATING GLOBAL TALENT IN NORWAY: STATISTICAL REPORT DAMVAD.COM

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