LIFE AFTER STUDY. International students settlement experiences in New Zealand DOL11566 NOV 10

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1 2010 LIFE AFTER STUDY Internatinal students settlement experiences in New Zealand DOL11566 NOV 10

2 Authrs Angie Wilkinsn, Statistics New Zealand Paul Merwd, Department f Labur Anne-Marie Masgret, Department f Labur Disclaimer: The Department f Labur has made every effrt t ensure that the infrmatin cntained in this reprt is reliable, but makes n guarantee f its accuracy r cmpleteness and des nt accept any liability fr any errrs. The Department may change the cntents f this reprt at any time withut ntice. Crwn cpyright 2010 This material is Crwn cpyright unless therwise stated and may be reprduced free f charge withut requiring specific permissin. This is subject t it being reprduced accurately and nt being used in a dergatry manner r in a misleading cntext. The surce and cpyright status shuld be acknwledged. The permissin t reprduce Crwn cpyright prtected material des nt extend t any material in this reprt that is identified as being the cpyright f a third party. Department f Labur PO Bx 3705 Wellingtn New Zealand Fr further infrmatin abut this reprt Fr Immigratin Research visit ISBN

3 CONTENTS LIST OF FIGURES... V LIST OF TABLES... V EXECUTIVE SUMMARY... VII 1 INTRODUCTION Purpse f this reprt Cntext f this reprt Student immigratin plicy Data surces used Structure f this reprt INTERNATIONAL STUDENTS IN NEW ZEALAND Intrductin Educatinal sectr f internatinal students INTERNATIONAL STUDENTS TRANSITION PATHWAYS TO WORK AND RESIDENCE Intrductin Student transitins: Lng-term trends Internatinal students intentins Characteristics f internatinal students wh transitin t wrk r residence Main wrk transitin pathways Main residence transitin pathways Internatinal students and permanent skilled migratin Regressin analysis f student transitin pathways INTERNATIONAL STUDENTS MOTIVATIONS FOR CHOOSING NEW ZEALAND Intrductin Internatinal students mtivatins t study in New Zealand Internatinal students migratin intentins Internatinal students mtivatin t apply fr permanent residence in New Zealand SETTLEMENT OUTCOMES OF INTERNATIONAL STUDENTS WHO GAINED RESIDENCE Intrductin Main characteristics f students in LisNZ Qualificatins and study f frmer internatinal students Cmparisn f frmer students emplyment and labur frce utcmes with thse f ther migrants Settlement and satisfactin with life in New Zealand CONCLUSION APPENDICES Appendix A: Additinal ntes n the data surces...48 Life after Study: Internatinal students settlement experiences in New Zealand iii

4 Appendix B: Descriptin f Wrk Plicy...50 Appendix C: Descriptin f permanent residence categries...51 Appendix D: Lgistic regressin mdel estimates...52 Appendix E: Transitins Survey questins...53 Appendix F: Lngitudinal Immigratin Survey: New Zealand questins and derived variables...55 Appendix G: Regin f rigin classificatin...59 Appendix H: Qualificatin classificatin used in the survey data...60 REFERENCES iv Life after Study: Internatinal students' settlement experiences in New Zealand

5 LIST OF FIGURES Figure 1.1 Figure 1.2 Freign students enrlled in tertiary educatin utside their cuntry f citizenship, Timeline f plicy changes relevant t internatinal students, Figure 2.1 Student permit apprvals, 1997/ / Figure 2.2 Internatinal tertiary enrlments by qualificatin level, Figure 2.3 Internatinal tertiary enrlments by qualificatin level and main surce cuntry, Figure 3.1 Summary f student transitins, Figure 3.2 Figure 3.3 Figure 4.1 Cumulative prprtin f students wh transitined t wrk by chrt year, Cumulative prprtin f students wh transitined t permanent residence by chrt year, Prprtin f respndents wh sught qualificatins t help gain permanent residence by highest qualificatin gained in New Zealand...30 Figure 5.1 Highest qualificatin gained in New Zealand by regin f rigin...34 Figure 5.2 LIST OF TABLES Tp five fields f study fr frmer internatinal students frm the Lngitudinal Immigratin Survey: New Zealand and the 2006 Census f Ppulatin and Dwellings...36 Table 1.1 Features f the study t wrk plicies, as at 30 June Table 1.2 Table 1.3 Table 2.1 Table 2.2 Table 2.3 Table 3.1 Table 3.2 Table 3.3 Table 3.4 Graduate jb search visa apprvals by main surce cuntry, Characteristics f the three data sets used in this reprt...7 Enrlments f internatinal fee-paying students by educatin sectr, Enrlments f internatinal fee-paying students by educatin sectr and by main surce cuntries, Internatinal student enrlments by field f study and qualificatin level, Summary f student characteristics, mean age, and transitin rates...19 Transitin t wrk by student surce cuntry/regin and wrk categry, Transitin t residence by student surce cuntry/regin and residence categry, Skilled pathway by student surce cuntry/regin and wrk categry, Life after Study: Internatinal students' settlement experiences in New Zealand v

6 Table 3.5 Table 4.1 Table 4.2 Table 5.1 Table 5.2 Table 5.3 Table 5.4 Table 5.5 Table 5.6 Table 5.7 Marginal effects f student characteristics estimated frm the binmial lgistic regressin mdels f transitin pathways...25 Factrs mtivating internatinal students t study in New Zealand...28 Factrs mtivating internatinal students t apply fr permanent residence...31 Tp five fields f study by respndents highest qualificatin gained in New Zealand...35 Emplyment status f frmer students, waves 1 and 2 f the Lngitudinal Immigratin Survey: New Zealand...38 Ten mst cmmn ccupatins at wave 2 f the Lngitudinal Immigratin Survey: New Zealand...40 Ten mst cmmn ccupatins at wave 2 f frmer students apprved as skilled principal migrants...41 Skill level f emplyed frmer students main jb by highest qualificatin gained in New Zealand...42 Skill level f emplyed frmer students main jb by field f study fr highest qualificatin gained in New Zealand...43 Median hurly earnings frm wages and salaries by selected characteristics...44 Table 5.8 Years respndents intended t stay in New Zealand at wave 1 and wave Table B.1 Key features f the wrk plicies described in the reprt...50 Table C.1 Key features f the residence plicies described in the reprt...51 Table D.1 Lgistic regressin mdel estimates f the effects f individual characteristics n transitin rates...52 Table G.1 Tp cuntries f natinality within each categry...59 Table H.1 Cding fr highest qualificatin gained in New Zealand fr the Transitins Survey and Lngitudinal Immigratin Survey: New Zealand (LisNZ)...60 vi Life after Study: Internatinal students' settlement experiences in New Zealand

7 EXECUTIVE SUMMARY Purpse f this reprt This reprt uses multiple infrmatin surces t describe the characteristics f internatinal students in New Zealand, the mtivatins f frmer internatinal students wh have successfully transitined t wrk and residence, and the early settlement experiences f frmer internatinal students in New Zealand. By understanding sme f the factrs that cntribute t the successful retentin and settlement f frmer internatinal students in New Zealand, we can develp plicies and services t better supprt this segment f the migrant ppulatin. Data surces The research presented in this reprt makes use f bth administrative and survey data frm three surces. Multiple surces f infrmatin enable us t gain a fuller understanding f internatinal student experiences and examine the characteristics f these students as well as their experiences at different stages f their transitin frm study t residence. The three primary data surces used in this research are the: Department f Labur s immigratin administrative data abut visa and permit applicatins Transitins Survey, which is a survey f skilled principal migrants wh transitined frm temprary t permanent residence in New Zealand Lngitudinal Immigratin Survey: New Zealand (LisNZ) data frm 6 mnths (wave 1) and 18 mnths (wave 2) after a chrt f migrants gained permanent residence in New Zealand. Internatinal students in New Zealand Ecnmic cntributin Educatin is ne f New Zealand s tp five exprt industries. It generated an ecnmic benefit f ver $2.3 billin in 2007/08 and indirectly supprts ver 32,000 jbs. 1 Exprt educatin als cntributes t the academic reputatin f institutins and can imprve the cst-efficiency f educatin prvisin. 2 The Organisatin fr Ecnmic C-peratin and Develpment (OECD) estimated that 3 millin tertiary students were enrlled utside their cuntry f citizenship 1 Infmetrics, NRB, and SkinnerStrategic The Ecnmic Impact f Exprt Educatin. Wellingtn: Educatin New Zealand and Ministry f Educatin. Available at 2 OECD Educatin at a Glance: OECD indicatrs. Paris: Organisatin fr Ecnmic C-peratin and Develpment, p 310. Life after Study: Internatinal students' settlement experiences in New Zealand vii

8 in New Zealand is the eighth largest recipient f internatinal students in the OECD, receiving arund 2.1 percent f freign students in tertiary educatin. Hwever, New Zealand s per capita rate f 15 internatinal students per 1,000 peple is the highest in the OECD. 4 Predminance f the Asian student market Arund 70,000 internatinal students are granted permits t study in New Zealand each year and 75 percent are frm Asia (predminantly, China, Suth Krea, and India). Internatinally, Asian students cmprise abut half (47 percent) f all freign students in OECD cuntries. Tw-step migratin prcess Over time, arund 31 percent f fee-paying internatinal students transitin t wrk and/r permanent residence in New Zealand. Arund ne-fifth f feepaying internatinal students gain permanent residence in New Zealand. Indian and Chinese students have the highest transitin rates t wrk (72 percent and 43 percent), and their main rute int the labur market is via the Study t Wrk plicies. Thrugh their studies and time spent in New Zealand, internatinal students gain knwledge f lcal wrk practices and regulatins, prficiency in English, an understanding f lcal scial and cultural nrms, and qualificatins that New Zealand emplyers recgnise. This experience makes internatinal student graduates highly attractive as ptential migrants t New Zealand. Mtivating factrs when chsing New Zealand Chsing New Zealand as a study destinatin The quality and cst f educatin in New Zealand, pprtunities t wrk in New Zealand after graduatin and t apply fr residence, and pprtunities t study in an English-speaking cuntry are imprtant drivers in internatinal students decisins t study in New Zealand. Staying n in New Zealand after study Just ver ne-third (37 percent) f frmer students wh gained residence in New Zealand as skilled migrants intended t apply fr permanent residence frm the utset. Frmer students wh had a vcatinal qualificatin as their highest qualificatin gained in New Zealand were mre likely t reprt that they sught a vcatinal qualificatin t help them gain permanent residence (51 percent) than students wh gained a bachelr s r higher degree. 3 OECD Educatin at a Glance: OECD indicatrs. Paris: Organisatin fr Ecnmic C-peratin and Develpment, p Based n OECD estimates f freign students and ttal ppulatins in viii Life after Study: Internatinal students' settlement experiences in New Zealand

9 The mst imprtant factrs influencing students decisins t apply fr permanent residence were lifestyle (80 percent), safety and security (80 percent), and educatinal pprtunities (68 percent). Ecnmic-related mtivatins were relatively weak pull factrs fr internatinal students with nly 56 percent chsing t migrate t New Zealand fr jb pprtunities. Internatinal students settlement experiences Emplyment utcmes Eighteen mnths after gaining permanent residence, 68 percent f frmer internatinal students were in full-time emplyment. Of these, 62 percent wrked in a skilled jb and 31 percent wrked in prfessinal ccupatins. Imprtance f qualificatins in the transitin t the labur market Frmer students with a bachelr s r higher degree were mre likely t experience psitive labur market utcmes (that is, earn mre mney, wrk in a higher skilled jb, and reprt a higher level f jb satisfactin) than thse with a vcatinal qualificatin gained in New Zealand. Many students cntinue t study after gaining residence Many frmer students wh were nt in the labur frce were studying. Eighteen mnths after gaining permanent residence, almst half (48 percent) f frmer students had dne ther study (excluding English language study) in New Zealand since gaining permanent residence and almst ne-fifth were ut f the labur frce and studying. Cnclusin Internatinal students make a psitive cntributin t the ecnmic and scial fabric f New Zealand. The availability f plicies that facilitate students transitin frm study t wrk and residence are imprtant in attracting and retaining internatinal students here. Future research The variety f data surces creates several pprtunities fr further research. Immigratin administrative data ffers the pssibility f assessing the retentin f students wh transitin t wrk r residence in New Zealand. In additin, the third and final wave f LisNZ will allw fr further analysis f settlement utcmes fr frmer internatinal students with particular attentin t changes ver time. Life after Study: Internatinal students' settlement experiences in New Zealand ix

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11 1 INTRODUCTION 1.1 Purpse f this reprt The purpse f this reprt is t identify the key characteristics f internatinal students in New Zealand, their transitins t wrk and residence, and their early settlement experiences in New Zealand. Tracking the settlement utcmes f internatinal students requires data n a ppulatin that is ften nt captured in fficial statistics. This type f research requires administrative data and surveys that include these ppulatins such as the Transitins Survey and the Lngitudinal Immigratin Survey: New Zealand (LisNZ). Immigratin administrative data is ideal fr tracking students mvements frm study permits t ther permits. The survey data enables us t explre factrs that cntribute t successful migratin utcmes fr frmer internatinal students. Factrs such as students mtivatins t study in New Zealand and their intentins when they first arrived help t explain differences in transitin rates. Data n emplyment status, ccupatin, and incme supplements administrative data abut wh transitins t permanent residence. This supplementary data als enables a mre rbust picture t be develped abut hw frmer internatinal students perfrm in the labur market alngside ther migrants. Psitive labur market experiences are an imprtant aspect f retaining these migrants in New Zealand. Understanding the factrs relating t internatinal students successful transitin t residence and settlement in New Zealand will cntribute t the develpment f effective immigratin plicy and settlement services fr this grwing segment f the migrant ppulatin. 1.2 Cntext f this reprt Internatinally, tw develpments ver the past decade have raised the prfile f internatinal students. The first develpment is the internatinalisatin f educatin with ecnmic benefits t receiving cuntries. The secnd develpment is the prmtin f highly skilled migratin and plicies that fster links between exprt educatin and permanent migratin. 5 Facilitating exprt educatin while incentivising internatinal graduates t remain in the cuntry has becme knwn as tw-step migratin. Educatin is ne f New Zealand s tp five exprt industries. It generated an ecnmic benefit f ver $2.3 billin in 2007/08 and indirectly supprts ver 5 B Suter and M Jandl Train and retain: Natinal and reginal plicies t prmte the settlement f freign graduates in knwledge ecnmies. Jurnal f Internatinal Migratin and Integratin 9: Life after Study: Internatinal students' settlement experiences in New Zealand 1

12 32,000 jbs. 6 In additin t the immediate fiscal benefit generated by tuitin fees, internatinal educatin can als cntribute t the academic reputatin f institutins and imprve the cst-efficiency f educatin prvisin. 7 The grwth in the internatinalisatin f tertiary educatin ver the last decade has ccurred alngside the glbalisatin f ecnmies and scieties. The Organisatin fr Ecnmic C-peratin and Develpment (OECD) estimated that in 2007, 3 millin tertiary students were enrlled utside their cuntry f rigin (Figure 1.1). 8 New Zealand is the eighth largest recipient f internatinal students, receiving arund 2.1 percent f freign students in tertiary educatin. Hwever, New Zealand s per capita rate f 15 internatinal students per 1,000 ppulatin is the highest in the OECD. 9 Figure 1.1 Freign students enrlled in tertiary educatin utside their cuntry f citizenship, Number f freign students Thusands 3,500 3,000 2,500 2,000 1,500 1, Freign students enrlled in OECD cuntries Freign students enrlled wrldwide Surce: OECD Educatin at a Glance: OECD indicatrs. Paris: Organisatin fr Ecnmic C-peratin and Develpment. Available at The OECD suggests that the language f instructin is a critical factr in students chice f cuntry fr study. 10 In New Zealand, the Ministry f Educatin reprts that New Zealand being an English-speaking cuntry is the mst imprtant reasn internatinal students chse t study here. 11 In additin t English instructin, cuntries such as New Zealand, Australia, and Canada can 6 Infmetrics, NRB, and SkinnerStrategic The Ecnmic Impact f Exprt Educatin. Wellingtn: Educatin New Zealand and Ministry f Educatin. Available at 7 OECD Educatin at a Glance: OECD indicatrs. Paris: Organisatin fr Ecnmic Cperatin and Develpment, p OECD Educatin at a Glance: OECD indicatrs. Paris: Organisatin fr Ecnmic Cperatin and Develpment, p Based n OECD estimates f freign students and ttal ppulatins in OECD Educatin at a glance: OECD indicatrs. Paris: Organisatin fr Ecnmic Cperatin and Develpment, p Ministry f Educatin Experiences f Internatinal Students in New Zealand: Reprt 2007 n the results f the natinal survey. Wellingtn: Ministry f Educatin, p Life after Study: Internatinal students' settlement experiences in New Zealand

13 ffer qualified internatinal students pprtunities t migrate thrugh plicies that link temprary and permanent migratin. Arund 70,000 students f mre than 150 natinalities are granted student permits in New Zealand annually. Mst students are fee-paying students, and arund 75 percent are frm Asian cuntries, althugh this prprtin has been decreasing since 2002/ This cmpares with arund 47 percent f Asian students in all OECD cuntries cmbined. 13 In New Zealand, the main student surce cuntries in 2009/10 were China, Suth Krea, and India. 1.3 Student immigratin plicy Immigratin plicy t supprt internatinal educatin has undergne several changes ver the last decade. The mst imprtant has been a fundamental change in the purpse f student plicy frm being purely facilitative in its apprach t student entry t fcusing n internatinal students in the brader cntext f New Zealand s ecnmic develpment. This change was apparent in plicies t fster the links and transitins between study, wrk, and permanent residence in New Zealand Timeline f immigratin plicy changes Figure 1.2 depicts a timeline f immigratin plicy changes that shw the relatinship between student, wrk, and permanent residence plicies. 12 A fee paying student is an internatinal student wh meets the full tuitin csts n their wn r frm funds prvided t them by spnsrs ther than the New Zealand Ministry f Freign Affairs and Trade. 13 OECD Educatin at a Glance: OECD indicatrs. Paris: Organisatin fr Ecnmic Cperatin and Develpment, p 320. Life after Study: Internatinal students' settlement experiences in New Zealand 3

14 Figure 1.2 Timeline f plicy changes relevant t internatinal students, Timeline f plicy changes relevant t internatinal students Student plicy Wrk plicy Residence plicy Students frm visa-free cuntries can nw apply fr their permit in NZ. Students in full-time tertiary curse can wrk up t 15 hurs per week during term time. Oct-95.. The new General Skill Categry (GSC) requires a minimum IELTS level 5 n each f the fur bands fr principal applicants. Mar-99 One additinal pint awarded under the GSC fr New Zealand qualificatins, and freign Jul-99.. students with an eligible New Zealand qualificatin are exempt frm the requirement t have 2 years wrk experience. Tw extra pints awarded fr Nv-99.. New Zealand qualificatins under the GSC. Guardian visa* intrduced a persn may be issued a visitr s permit fr the purpse f living with, and caring fr, a freign fee-paying student in New Zealand. Wrk rights extended t schl students, English language students and students undertaking SMC curses. Wrk rights extended t fulltime wrk ver the Christmas perid if the curse duratin is 12 mnths r mre. Partners f pstgraduate students r thse studying fr a qualificatin in an area f abslute skill shrtage can get an pen wrk permit. Partners f peple granted student permits wh are NZAID supprted, and wh have a jb ffer and written apprval frm NZAID, may be granted an pen wrk permit. Student plicy strengthened t enable a mre rigrus assessment t take place when students apply t change their curse f study and/r educatin prvider. Guardian visa* plicy amended t allw a student s legal guardian t leave New Zealand temprarily in case f emergency. Jul-01 Sept-03 Dec-03 Dec-04 Jul-05 Jul-07 Nv-07 Jul-09 Nv Graduate jb search permit intrduced. Partners f pstgraduate students r thse studying in an area f abslute skill shrtage can apply fr an pen wrk permit fr the duratin f study... Duratin f the graduate jb search permit increases frm 6 t 12 mnths; Pst-study practical experience permit increases frm 2 t 3 years fr graduates wh require 3 years wrk experience in New Zealand t qualify fr membership r registratin with prfessinal bdies. Feb-08.. Wrking hlidaymakers may enrl in ne r mre curses f training r study f up t 3 mnths' duratin in ttal, unless their scheme allws a lnger perid. GSC English language requirement changed t allw fr an verall band scre f IELTS 5. Skilled Migrant Categry (SMC) cmes int effect: 10 bnus pints are awarded fr New Zealand qualificatins freign students with at least 2-years full-time study in New Zealand can gain residence withut a jb ffer if they have gained a PhD r master s degree, r a qualificatin relevant t an ccupatin in abslute shrtage. SMC intrduces bnus pints fr having clse family in New Zealand. SMC bnus pints fr New Zealand qualificatins spilt int: 5 pints fr 2 years full-time study twards a recgnised qualificatin 5 pints fr a recgnised qualificatin frm levels 4 t 8 10 pints fr a recgnised qualificatin at levels 9 r 10 New Zealand qualificatins recgnised under the SMC are changed: level 3 qualificatins n lnger recgnised level 4 Natinal Certificates nly recgnised if they are relevant t a skilled ccupatin. Ntes: IELTS = Internatinal English Language Testing System; NZAID = New Zealand Agency fr Internatinal Develpment. * The guardian visa is related t internatinal students but is a temprary visitr plicy. 4 Life after Study: Internatinal students' settlement experiences in New Zealand

15 1.3.2 Study t wrk plicies There are tw plicies fr internatinal students that facilitate the transitin t wrk frm study: the Graduate Jb Search Plicy and the Pst-Study Practical Experience Plicy. The Graduate Jb Search Plicy, intrduced in 2005, prvided new links between studying in New Zealand and pprtunities t enter the labur market. Befre 2005, students reprted having difficulties accessing the labur market after cmpleting study. Students frm mst f the main surce cuntries had access t Wrking Hliday Schemes, but thse frm China had fewer pprtunities t transitin t wrk r residence. The Graduate Jb Search Plicy allws eligible students t search fr a jb (n an pen wrk permit) fr a limited perid, with ptins t stay in New Zealand if they find wrk relevant t their qualificatins thrugh the existing Pst-Study Practical Experience Plicy. These tw study t wrk plicies aim t make New Zealand a mre cmpetitive study destinatin fr internatinal students. Table 1.1 summarises the features f these tw plicies. Table 1.1 Features f the study t wrk plicies, as at 30 June 2009 Graduate Jb Search Plicy Students must have cmpleted a qualificatin in New Zealand that qualifies fr pints under the Skilled Migrant Categry (1) Applicants d nt need a jb ffer Students must apply within 3 mnths f the end date f their student permit fr that qualificatin The permit is granted fr 12 mnths Pst-Study Practical Experience Plicy Students must have cmpleted a curse in New Zealand that has a minimum cmpletin time f 3 years r wuld qualify fr pints under the Skilled Migrant Categry (1) Applicants must hld a jb ffer relevant t their curse r qualificatin Students must apply within 3 mnths f the end date f their student permit fr that qualificatin r hld a graduate jb search wrk permit The permit is granted fr 2 years fr the applicant t btain practical wrk experience suitable t their curse r qualificatin, r 3 years if the applicant is wrking twards membership r registratin with a New Zealand prfessinal assciatin that requires mre than 2 years practical experience (1) The Skilled Migrant Categry is the main categry in the Skilled/Business Stream (ne f fur residence streams under the New Zealand Residence Prgramme). This categry is the primary immigratin categry fr permanent skilled migratin and is weighted heavily twards skilled emplyment, wrk experience, and qualificatins. Between 1 July 2005 and 31 December 2009, just ver 28,000 students were issued a graduate jb search wrk visa. Of these students, 63 percent were frm China and 19 percent were frm India. The grwth f the Indian student market is evident in the graduate jb search visa figures. The number f visas issued t Indian students mre than dubled Life after Study: Internatinal students' settlement experiences in New Zealand 5

16 between 2008 and 2009, making India the largest surce cuntry fr this visa type (Table 1.2). The relatively lw take up f the graduate jb search visa by students frm Suth Krea, Japan, and the United States may reflect the availability f Wrking Hliday Schemes, which are a ppular pst-study ptin fr students frm these cuntries. The lw take up als highlights that permanent migratin is less f a driver fr students frm these cuntries; these are nt majr surce cuntries f migrants t New Zealand. Students frm Japan and Suth Krea are usually studying English language r in schl, s many return t their cuntry r rigin after their study perid. Table 1.2 Graduate jb search visa apprvals by main surce cuntry, Main surce cuntry Year apprved China India Suth Krea Japan Others Ttal , , , , , , ,080 1, ,010 6, ,380 3, ,180 6,930 Ttal 17,640 5, ,750 28, Data surces used This research draws n the three primary data surces f the: Department f Labur s immigratin administrative data abut visa and permit applicatins Transitins Survey, which is a Department f Labur survey f skilled principal migrants that was undertaken in Lngitudinal Immigratin Survey: New Zealand (LisNZ) waves 1 and 2 were carried ut by the Department f Labur and Statistics New Zealand in partnership between 2005 and See Appendix A fr additinal ntes n the primary data surces used. Additinal data surces are cited in the text where relevant. Table 1.3 summarises the key characteristics f the three primary data sets. 6 Life after Study: Internatinal students' settlement experiences in New Zealand

17 Table 1.3 Characteristics f the three data sets used in this reprt Characteristic Surce Ppulatin Student ppulatin Sample perid Immigratin administrative data Department f Labur All visa and permit applicants All visa and permit applicants First student permit apprved between January 2003 and December 2006 Transitins Survey Department f Labur Principal migrants apprved fr residence thrugh the Skilled Migrant Categry (1) wh had held a student r wrk permit in New Zealand Principal migrants wh had held a student permit in New Zealand as independent feepaying students and/r gained a pstschl qualificatin in New Zealand Apprved fr residence between July 2006 and August 2007 Survey perid n/a Octber 2007 February 2008 Size f target ppulatin Size f selected sample Number f bservatins 88,794 12,343 36,220 88,794 12,343 12,202 Lngitudinal Immigratin Survey: New Zealand Department f Labur and Statistics New Zealand Migrants aged 16 and ver (excluding refugees) apprved fr residence in New Zealand Migrants wh had held a student permit in New Zealand and/r gained a pstschl qualificatin in New Zealand Apprved fr residence between Nvember 2004 and Octber 2005 Wave 1: May 2005 April 2007 Wave 2: May 2006 April ,794 3,454 Wave 1: 7,137 Student 88,794 1,054 1,083 subsample (2) Wave 2: 6,156 Respnse rate n/a 40% Wave 1: 66% Wave 2: 86% (3) (1) The Skilled Migrant Categry is the main categry in the Skilled/Business Stream (ne f fur residence streams under the New Zealand Residence Prgramme). This categry is the primary immigratin categry fr permanent skilled migratin and is weighted heavily twards skilled emplyment, wrk experience, and qualificatins. (2) Within each survey, a ppulatin f frmer internatinal students was identified. (3) The respnse rate was higher fr wave 2 than wave 1, since nly wave 1 respndents were eligible t be surveyed fr wave 2. Life after Study: Internatinal students' settlement experiences in New Zealand 7

18 1.5 Structure f this reprt Chapter 2 describes the key features f internatinal students in New Zealand and the immigratin plicies that enable internatinal students t mve frm study t ther permit types. Chapter 3 examines the characteristics f students wh transitin frm study t wrk and permanent residence in New Zealand. Chapters 4 and 5 use the tw surveys f migrants in New Zealand (the Transitins Survey and LisNZ) t explre the mtivatins, experiences, and intentins f internatinal students wh have gained permanent residence in New Zealand. Chapter 6 cncludes the reprt. Appendices A H cntain infrmatin abut the data surces, immigratin plicy definitins, and extracts frm the survey questinnaires used in the analysis. 8 Life after Study: Internatinal students' settlement experiences in New Zealand

19 2 INTERNATIONAL STUDENTS IN NEW ZEALAND Highlights The number f fee-paying students decreased 27 percent frm 2003 t 2008, including a 61 percent decrease in students frm China. In 2009, enrlment numbers increased 6 percent t 93,500 the first increase since The number f students frm India has increased steadily frm arund 1,200 annually in the first half f this decade t ver 7,000 in 2009/10. India is New Zealand s third largest surce cuntry behind China and Suth Krea. The university sectr s share f internatinal enrlments has decreased frm 28 percent in 2005 t 20 percent in Students frm China enrl predminantly in universities and private training establishments. One-third f students frm Suth Krea enrl in schls and almst half in private training establishments. The fields f sciety and culture, management and cmmerce, natural and physical sciences, and infrmatin technlgy are the mst cmmn fr internatinal students in New Zealand. 2.1 Intrductin New Zealand s exprt educatin sectr has changed dramatically ver the past 12 years. The start f this decade was characterised by grwth in internatinal student numbers, driven primarily by China (Figure 2.1). At that time, large numbers f students als came frm Suth Krea and Japan. These three cuntries cmbined were the surce f arund 70 percent f all fee-paying students when numbers peaked in 2002/03. The rapid grwth in students frm China has been attributed t several factrs, including a grwing interest by Chinese students in gaining tertiary qualificatins in English-speaking cuntries and their perceptins f New Zealand as a relatively safe, lw-cst study destinatin. 14 The lw value f the New Zealand dllar in the early 2000s increased the affrdability f studying here. 15 The declining numbers f students frm China between 2003/04 and 2008/09 ccurred as educatin pprtunities imprved in cuntries such as Australia, the United States, Great Britain, and Canada, as well as in China. The rising value f the New Zealand dllar reduced the cst advantage f studying here, and 14 Ministry f Educatin Internatinal Student Enrlments in New Zealand: Wellingtn: Ministry f Educatin. 15 Reserve Bank f New Zealand Histrical Series. Available at Life after Study: Internatinal students' settlement experiences in New Zealand 9

20 New Zealand s reputatin was cmprmised with the cllapse f sme private educatin prviders and the resulting negative publicity. 16 Figure 2.1 Student permit apprvals, 1997/ /09 100,000 Number f students apprved 80,000 60,000 40,000 20, /98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Financial year Ttal students China Other cuntries Surce: Department f Labur Migratin Trends and Outlk 2008/09. Wellingtn: Department f Labur. Available at /index.asp The number f fee-paying students decreased 27 percent frm 121,200 students in 2003 t 88,600 in 2008, including a 61 percent decrease in students frm China. 17 The prprtin f Chinese students fell frm 44 percent in 2002 t 23 percent in This decrease in the verall numbers led t a 19 percent reductin in the ttal tuitin fees paid frm $742.7 millin t $602.3 millin. The situatin imprved in 2009 with enrlment numbers increasing 6 percent t 93,500 the first increase since The decline in numbers frm China has been partially ffset by increased numbers frm ther markets. Over the last 5 years, the numbers f students cming frm Eurpe and Latin America have increased and there has been significant grwth frm India and Saudi Arabia. India has emerged as an imprtant surce cuntry fr internatinal students. Since 2007/08, it has been New Zealand s third largest surce cuntry behind China and Suth Krea. The number f Indian students apprved t study has increased steadily ver the last 5 years, frm arund 1,200 fee-paying students annually in the first half f this decade t ver 7,000 in The number f Indian students has increased predminantly within public tertiary educatin institutins (particularly institutes f technlgy and plytechnics) and private training establishments. 16 Educatin New Zealand Immigratin Plicy Benchmarking: Implicatins fr cmpetitiveness f New Zealand s exprt educatin sectr. Wellingtn: Educatin New Zealand, p Ministry f Educatin Internatinal Educatin: Latest statistics relating t internatinal educatin in New Zealand. Available at (accessed 26 February 2010). 18 This number refers t the number f visa/permit apprvals rather than the number f enrlments. 10 Life after Study: Internatinal students' settlement experiences in New Zealand

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