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 [email protected]. 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

21 2.2 Educatinal sectr f internatinal students Mst internatinal students enrl at tertiary level, but students frm particular surce cuntries are cncentrated in different educatinal sectrs. Table 2.1 shws that the largest sectr between 2004 and 2009 was the private training establishment sectr, which had 48 percent f fee-paying students in Enrlments in public tertiary educatin institutins have been decreasing since The university sectr s share f internatinal enrlments has decreased frm 28 percent (27,600) in 2005 t 20 percent (18,900) in Table 2.1 Enrlments f internatinal fee-paying students by educatin sectr, Internatinal enrlments by prvider grups Clumn percent (%) Schls Institutes f technlgy and plytechnics Universities Private training establishments (1) Subsidiary prviders (2) Ttal enrlments 112,663 98,275 95,294 91,311 88,574 93,505 Change frm previus year -7% -13% -3% -4% -3% 6% (1) Includes English language schls. (2) Subsidiary prviders are mainly the English language training affiliates f sme universities and high schls. Surce: Ministry f Educatin. Table 2.2 shws that students frm China enrl predminantly in universities and private training establishments, with relatively few enrlling in schls. This cntrasts with students frm Suth Krea, f whm ver ne-third enrl in schls and almst half enrl in private training establishments. Life after Study: Internatinal students' settlement experiences in New Zealand 11

22 Table 2.2 Enrlments f internatinal fee-paying students by educatin sectr and by main surce cuntries, 2009 Educatin prvider grup (%) Surce cuntry (1) Schl ITP(2) University PTE (3) Subsidiary (4) Ttal (%) China Suth Krea Japan India Saudi Arabia All thers Ttal rw (%) Nte: Due t runding, percentages may nt sum t 100. (1) Ordered by descending number f enrlments in (2) ITP = institute f technlgy and plytechnic. (3) PTE = private training establishment, including English language prvider. (4) The subsidiary grup cmprises mainly the English language training affiliates f sme universities and high schls. Surce: Ministry f Educatin Distributin f tertiary student enrlments by qualificatin level Changing patterns in educatin prviders are als reflected in the qualificatin level f internatinal students. Figure 2.2 shws internatinal tertiary enrlments by qualificatin level. Figure 2.2 Internatinal tertiary enrlments by qualificatin level, % 40% 30% 20% 10% 0% Certificate (1-4) Diplma (5-7) Undergraduate Pstgraduate Nte: The data fr this figure excludes students enrlled at private training establishments that did nt receive gvernment tuitin subsidies. Surce: Ministry f Educatin. The prprtin f internatinal tertiary students enrlled in certificate curses fell frm 43 percent in 2002 t 17 percent in Since then, certificate-level curses have cmprised arund 20 percent f tertiary enrlments. The prprtin f students enrlled in diplma-level curses has als fluctuated, but has risen since 2007 and cmprised 27 percent f enrlments in Students frm India and China accunted fr almst all f the increase in diplma-level students in Life after Study: Internatinal students' settlement experiences in New Zealand

23 The decreasing market share f public tertiary prviders, particularly universities, is reflected in the prprtin f enrlments in undergraduate and pstgraduate curses. These tw grups cmbined decreased frm 58 percent f tertiary enrlments in 2006 t 52 percent in In abslute terms, hwever, the number f students enrlled in pstgraduate study almst trebled between 2002 and This may, in part, reflect the impact f a new plicy n dmestic fees status fr new internatinal dctral students, which was intrduced in Figure 2.3 shws the qualificatin level cmpsitin within each f the main surce cuntries in 2009 (excluding nn-subsidised private training establishments). A high prprtin f students frm India were enrlled in diplma-level curses (47 percent) in New Zealand cmpared with in ther cuntries. 20 This cmpares with 27 percent f students verall. At the ther end f the spectrum, 17 percent f students frm India were enrlled in pstgraduate curses cmpared with 9 percent f students frm China and 15 percent verall. Figure 2.3 Internatinal tertiary enrlments by qualificatin level and main surce cuntry, % 60% 50% 40% 30% 20% 10% 0% China Suth Krea Japan India Saudi Arabia All thers Ttal Certificate (1-4) Diplma (5-7) Undergraduate Pstgraduate Nte: The data in the figure excludes students enrlled at private training establishments that did nt receive gvernment tuitin subsidies. Surce: Ministry f Educatin Field f study Internatinally, certain cuntries attract freign students int specific fields f study. Fr example, cuntries such as the United States, Canada, and several Eurpean cuntries attract a high prprtin f internatinal students int the sciences (science, agriculture, engineering, manufacturing, and cnstructin). 21 In New Zealand, the fields f sciety and culture, management and cmmerce, 19 Ministry f Educatin Internatinal Student Enrlments in New Zealand: Wellingtn: Ministry f Educatin. 20 This figure excludes enrlments in private training establishments, s mst likely underestimates the prprtin f diplma-level Indian students. 21 OECD Educatin at a Glance: OECD indicatrs. Paris: Organisatin fr Ecnmic Cperatin and Develpment, p 322. Life after Study: Internatinal students' settlement experiences in New Zealand 13

24 natural and physical sciences, and infrmatin technlgy are the mst cmmn (Table 2.3). Table 2.3 Internatinal student enrlments by field f study and qualificatin level, 2008 Qualificatin level (%) Certificates Levels 1 4 Diplmas Levels 5 7 Field f study Clumn % (1) Undergraduate Pstgraduate Ttal (%) Natural and physical sciences Infrmatin technlgy Engineering and related technlgies Architecture and building Agriculture, envirnmental and related studies Health Educatin Management and cmmerce Sciety and culture Creative arts Fd, hspitality and persnal services Mixed field prgrammes Ttal students 9,480 11,450 15,280 6,130 42,340 (1) Students may enrl in mre than ne field. Students are cunted in each field in which they are enrlled, s clumn percentages may sum t mre than 100 percent. Surce: Ministry f Educatin tertiary Single Data Returns. The field f sciety and culture was cmmn acrss all qualificatin levels, and the predminant subsectrs were language and literature, ecnmics, and law. Management and cmmerce curses made up just under half f all diplma- and undergraduate-level enrlments (41 percent and 49 percent respectively). Within this field, the three mst cmmn subsectrs were business and management, accuntancy, and sales and marketing. Infrmatin technlgy similarly made up a significant prprtin f diplma- and undergraduate-level enrlments (20 percent each). Enrlments in the natural and physical sciences were mst cmmn at undergraduate and pstgraduate levels (28 percent and 14 Life after Study: Internatinal students' settlement experiences in New Zealand

25 21 percent respectively). Enrlments were spread acrss the subsectrs, althugh mathematics, bilgy, and earth sciences were mst cmmn. In additin t the tertiary students in Table 2.3, students are als enrlled in private training establishments (40,896 students in 2008). An analysis f the Ministry f Educatin s exprt educatin levy data shws 70 percent f students enrlled in private training establishments tk English language curses. Other fields were business/business cmputing (14 percent) and turism/hspitality (4 percent) Ministry f Educatin Exprt Educatin Levy Key Statistics fr Full-Years Available frm 650/29680/29692 Life after Study: Internatinal students' settlement experiences in New Zealand 15

26 3 INTERNATIONAL STUDENTS TRANSITION PATHWAYS TO WORK AND RESIDENCE Highlights Frmer fee-paying internatinal students cmprise arund 13 percent f apprvals fr residence thrugh the New Zealand Residence Prgramme (arund 6,200 permanent migrants each year). Analysis f administrative recrds frm 1997 t 2006 shwed 21 percent f fee-paying internatinal students transitined t permanent residence, taking an average f 4 years t transitin after receiving their first student permit. Twenty-three percent f frmer internatinal students transitined t wrk, with ver half f these making the subsequent transitin t residence. A further 8 percent made a direct transitin frm study t residence. Transitin rates fr students frm India and China are much higher than thse f students frm Suth Krea and Japan, whse main mtivatin is t study English rather than gain a tertiary qualificatin. 3.1 Intrductin Frmer fee-paying internatinal students cmprise arund 13 percent f apprvals fr residence thrugh the New Zealand Residence Prgramme (arund 6,200 permanent migrants each year). Internatinal students can gain permanent residence in New Zealand thrugh tw main rutes. The mst cmmn rute is t transitin t a wrk permit and then t residence. The secnd, less cmmn, rute is t gain residence directly frm study. Research has shwn that the transitin pathways students take are influenced by several factrs. 23 Immigratin plicies influence cmpleting students ptins after study. These ptins depend primarily n where students are frm, the type f qualificatins they gain, and when they cmplete their study. Other factrs that als influence students migratin decisins are their mtivatins, scial netwrks, desire t stay in New Zealand, and cnnectins with the labur market. 3.2 Student transitins: Lng-term trends An analysis f 213,100 immigratin administrative recrds frm 1997 t 2006 shwed 21 percent f fee-paying internatinal students transitined t 23 Department f Labur Internatinal Students: Studying and staying n in New Zealand. Wellingtn: Department f Labur. 16 Life after Study: Internatinal students' settlement experiences in New Zealand

27 permanent residence. The average time taken t transitin was abut 4 years frm the time the student received their first student permit. Twenty-three percent f fee-paying internatinal students transitined t wrk, with ver half (57 percent) f these making the subsequent transitin t residence. A further 8 percent made a direct transitin frm study t residence. Figure 3.1 summarises the transitin pathways. Figure 3.1 Summary f student transitins, Nte: Int l = Internatinal. 3.3 Internatinal students intentins Studies have demnstrated internatinal students prpensity t want t migrate permanently after study. Survey results that the Ministry f Educatin published in 2004 and 2008 shwed that an increasing prprtin f internatinal students intended t apply fr permanent residence in New Zealand (frm 42 percent t 61 percent) Ministry f Educatin The Experiences f Internatinal Students in New Zealand: Reprt n the results f the natinal survey. Wellingtn: Ministry f Educatin; Ministry f Educatin Experiences f Internatinal Students in New Zealand: Reprt 2007 n the results f the natinal survey. Wellingtn: Ministry f Educatin. Life after Study: Internatinal students' settlement experiences in New Zealand 17

28 The increase may reflect the grwth in students frm surce cuntries such as India wh are mre likely t want t migrate after studying. 25 It may als reflect the increased availability f study t wrk permits frm July Characteristics f internatinal students wh transitin t wrk r residence We used a chrt apprach t determine internatinal students transitin pathways t wrk and residence. The analysis included 88,800 internatinal feepaying students apprved their first student permit in New Zealand frm 1 January 2003 t 31 December The Department f Labur s administrative data n immigratin applicatins prvided infrmatin abut the student permits apprved in this perid and any subsequent wrk r residence permits apprved. This sectin summarises the transitin rates fr all students in the chrts disaggregated by their surce cuntry/regin, educatin sectr, age and gender, and years since beginning study in New Zealand. These summary statistics are set ut in Table Student transitin rates by surce cuntry/regin The analysis shws substantial variatin in the wrk and residence transitin rates acrss the main surce cuntries and regins with rates fr students frm India and China much higher than thse frm Suth Krea and Japan. This demnstrates that migratin is a greater driver fr students frm develping cuntries than fr students frm develped cuntries. Migratin is less f a driver fr Suth Krean and Japanese students, whse main mtivatin is t study English rather than gain tertiary qualificatins, hence their lwer transitin rates Student transitin rates by educatin sectr The highest rates f transitin t bth wrk and residence were seen in the tertiary sectr, in particular amng students frm institutes f technlgy and plytechnics, althugh these students cmprised nly 6 percent f all students in the analysis Student transitin rates by age and gender The average age f internatinal fee-paying students apprved fr their first student permit in New Zealand was 20. The main departure frm this was in the schl sectr where the average age was 14. The prprtin f male and female students was evenly split with very little difference in the average age and transitin rates by gender. 25 Educatin New Zealand Indian Students Lngitudinal Study: Cnslidated reprt. Wellingtn: Educatin New Zealand. 18 Life after Study: Internatinal students' settlement experiences in New Zealand

29 3.4.4 Student transitin rates by years since beginning study in New Zealand Time is an imprtant factr in student transitins, particularly in the transitin t permanent residence. The students wh had been in New Zealand the lngest (up t 7 years fr the 2003 chrt) had the highest residence transitin rate. Table 3.1 Summary f student characteristics, mean age, and transitin rates Characteristic Surce cuntry/regin Percentage f chrts (%) Mean age at first permit (years) Transitin frm study t wrk Transitin rates (%) Transitin frm study t residence China Suth Krea Eurpe (including UK/Ireland) Japan Nrth America Suth-east Asia India All thers Educatin sectr University Institute f technlgy and plytechnic Private training establishment English language prvider Schl Gender Male Female Years since first permit (1) 7 years (2003 chrt) years (2004 chrt) years (2005 chrt) years (2006 chrt) Ttal students ( chrts) 88, Nte: The residence transitin rate f 12.8 percent in the table is lwer than the lng-run average rate discussed in sectin 3.2. This is because sme students in the chrts have had insufficient time t transitin t residence, althugh they may transitin in the future. (1) The year a student s first student permit was apprved was taken as the starting pint. Life after Study: Internatinal students' settlement experiences in New Zealand 19

30 3.5 Main wrk transitin pathways We used the administrative data t examine the internatinal student chrts fr and determine their main pathways frm study t wrk. Of the 88,800 students apprved ver the 4-year perid, 18,000 transitined t a wrk permit (20.3 percent). Figure 3.2 tracks the time lapsed frm the first student permit t the first wrk permit. It shws that the transitin time was faster with each chrt, which reflects the availability f the graduate jb search permit frm Figure 3.2 Cumulative prprtin f students wh transitined t wrk by chrt year, Prprtin (%) Same year 1 yr 2 yrs 3 yrs 4 yrs 5 yrs 6 yrs Time between first student permit and wrk apprval The predminant wrk transitin pathway is thrugh the study t wrk plicies, particularly the Graduate Jb Search Plicy (frm 2005). 26 Over half (52 percent) f students wh transitined t wrk did s thrugh these study t wrk plicies (Table 3.2). The Graduate Jb Search Plicy had a marked effect n the ability f students t transitin int the labur market. The lng-term trends shw that students wh finished their study after the plicy came int effect had a much higher transitin rate than earlier chrts had. Table 3.2 shws the variatin in transitin rates and pathways fr students frm the main surce cuntries/regins, which, in part, reflects the ptins available t nly sme students. Students frm India and China have the highest transitin rates (72 percent and 43 percent respectively) and their main transitin pathway is thrugh the study t wrk plicies and Essential Skills Plicy These include the graduate jb search permit and the practical experience pst-study permit. 27 Fr a descriptin f temprary wrk plicies, see Appendix B. 20 Life after Study: Internatinal students' settlement experiences in New Zealand

31 These trends illustrate the significance f the study t wrk plicies fr students frm India and China wh have little r n access t Wrking Hliday Schemes. 28 By cmparisn, Wrking Hliday Schemes have been a cmmn ptin fr students frm Japan, Suth Krea, and Nrth America wh wanted t wrk in New Zealand. Table 3.2 Transitin t wrk by student surce cuntry/regin and wrk categry, Surce cuntry/ regin Student chrt Transitined t wrk (%) Study t Wrk Wrk categry (rw %) (1) Essential Skills Family WHS (2) Others China 17, Suth Krea 20, Eurpe (incl UK) Suth-east Asia 11, , Japan 9, India 4, Nrth America 7, All thers 10, Ttal 88, (1) The table cunts the first transitin t a wrk permit. See Appendix B fr further infrmatin abut temprary wrk plicies. (2) WHS = Wrking Hliday Scheme. 3.6 Main residence transitin pathways We used the administrative data t examine the internatinal student chrts fr and determine their main pathways frm study t residence. Of the 88,800 students in the analysis, 11,400 transitined t permanent residence (13 percent). The transitin rate is lwer than the lng-run average rate because sme students have nt had enugh time t transitin. Figure 3.3 tracks the time frm the first student permit t apprval fr permanent residence. The figure shws that the transitin rate is similar fr each chrt and highlights the increased time needed t transitin t residence the rate has nt levelled ff after 6 years. 28 The China Wrking Hliday Scheme was intrduced in 2009 and has 1,000 places available annually (applicants must be in China t apply). New Zealand des nt have a Wrking Hliday Scheme with India. Life after Study: Internatinal students' settlement experiences in New Zealand 21

32 Figure 3.3 Cumulative prprtin f students wh transitined t permanent residence by chrt year, Prprtin (%) Same year 1 yr 2 yrs 3 yrs 4 yrs 5 yrs 6 yrs Time between first student permit and residence apprval The predminant pathway t residence was thrugh the Skilled Migrant Categry (Table 3.3). Of thse wh transitined t residence, 67 percent transitined as skilled migrants. Students frm India had the highest transitin rates (47 percent), fllwed by thse frm China (23 percent), and students frm these cuntries were mre likely than thers t transitin as skilled migrants (88 percent and 73 percent). Students frm Japan, Nrth America, and Suth Krea had very lw transitin rates. In the case f students frm Japan and Suth Krea, this mst likely reflects their educatin sectr (schl and English language prviders). In additin, research has shwn that Nrth American students are less likely t seek migratin pprtunities after study than students frm the main Asian surce cuntries Ministry f Educatin Experiences f Internatinal Students in New Zealand: Reprt 2007 n the results f the natinal survey. Wellingtn: Ministry f Educatin. 22 Life after Study: Internatinal students' settlement experiences in New Zealand

33 Table 3.3 Transitin t residence by student surce cuntry/regin and residence categry, Surce cuntry/ regin Student chrts Transitined t residence (%) Skilled Residence categry (rw %) (1) Business Partnership Other family All thers China 17, Suth Krea Eurpe (incl UK) Sutheast Asia 20, , , Japan 9, India 4, Nrth America 7, All thers 10, Ttal 88, (1) See Appendix C fr further infrmatin abut permanent residence categries. 3.7 Internatinal students and permanent skilled migratin New Zealand s student immigratin plicy cntributes t the cuntry s sustainable ecnmic develpment. This is achieved thrugh freign exchange earnings and by attracting and develping students wh have the skills and talents New Zealand needs. Retaining internatinal students is facilitated thrugh the study t wrk plicies, which prvide migratin pprtunities after study, and thrugh the recgnitin f New Zealand qualificatins and wrk experience in the Skilled Migrant Categry. We used the administrative data t examine the internatinal student chrts fr and determine the characteristics f students wh transitined t residence as skilled migrants and their main rutes t that utcme. Of the 88,800 students in this analysis, 7,600 gained permanent residence as skilled migrants (8.6 percent). This number is expected t increase because many students have nt had enugh time t transitin. Table 3.4 shws that the main pathway t skilled migratin fr internatinal students is thrugh the study t wrk plicies. Of thse students apprved fr residence thrugh the Skilled Migrant Categry, 44 percent had achieved this thrugh the study t wrk rute. The highest skilled transitin rates were bserved fr students frm India (41 percent) and China (17 percent). Fr these tw surce cuntries, arund 90 percent f students held a wrk permit befre transitining as skilled migrants. Fr ther cuntries, this rate ranged frm 45 percent t 78 percent. Very few students frm Suth Krea and Nrth America transitined as skilled migrants, but many f thse wh made the transitin did s directly frm study. Students frm Suth Krea were, n average, yunger than students frm ther Life after Study: Internatinal students' settlement experiences in New Zealand 23

34 cuntries, s were mre likely t be at schl. Many wuld have made the transitin t residence as secndary applicants, fr example, as a dependent child f a skilled migrant. Table 3.4 Skilled pathway by student surce cuntry/regin and wrk categry, Surce cuntry/ regin Student chrts % skilled pathway Nne (2) Study t wrk Wrk categry (rw %) (1) Essential Skills Family WHS (3) Others China 17, Suth Krea Eurpe (incl UK) Sutheast Asia 20, , , Japan 9, India 4, Nrth America 7, All thers 10, Ttal 88, (1) See Appendix B fr further infrmatin abut temprary wrk plicies. (2) Transitined t skilled residence frm study withut hlding a wrk permit. (3) Wrking Hliday Scheme. 3.8 Regressin analysis f student transitin pathways When cnsidering the relatinship between students characteristics and their transitin pathways, it is imprtant t cntrl fr factrs that may influence the prbability f students taking thse pathways. Fr example, the lw transitin rate fr students frm Suth Krea and Japan may be related t measurable factrs such as their age r educatin sectr rather than t specific differences between students frm different surce cuntries. See Appendix D fr further infrmatin n the mdel estimates. Ntwithstanding this apprach, differences in transitin patterns als reflect unbserved factrs. Such factrs include students mtivatins r ambitins, their scial netwrks, and their pprtunities t cnnect with the labur market. We mdelled the likelihd f students taking ne f fur pathways. Transitin t wrk being apprved a wrk permit after study. Transitin t residence frm wrk being apprved permanent residence after hlding a wrk permit. Transitin t residence being apprved permanent residence after hlding a wrk permit r directly frm study. 24 Life after Study: Internatinal students' settlement experiences in New Zealand

35 Transitin t skilled residence being apprved permanent residence thrugh a skilled migratin plicy after hlding a wrk permit r directly frm study. 30 The characteristics included in the regressin mdels as independent variables were: student surce cuntry/regin educatin sectr gender age (three grups) the number f years since the first student permit was apprved Likelihd f transitining t wrk and/r residence Irrespective f the ther variables used, the student s surce cuntry/regin had the greatest effect n their transitin pathway. The marginal effects are summarised in Table 3.5. Table 3.5 Marginal effects f student characteristics estimated frm the binmial lgistic regressin mdels f transitin pathways Student characteristic (reference grup) Surce cuntry/regin (China) Wrk Transitin pathway (1) Wrk t residence Residence Skilled Suth Krea * * * * Eurpe (including UK) * * * Japan * * * * Nrth America * * * * Suth-east Asia * * * India 0.22 * 0.17 * 0.22 * 0.19 * All ther surce cuntries * 0.05 * * * Educatin sectr (university) Institutes f technlgy/plytechnics Private training establishment 0.08 * * 0.02 * 0.04 * * * English language * * * Schl * * Gender (male) Female 0.03 * 0.06 * 0.03 * 0.01 * 30 Predminantly the Skilled Migrant Categry, but als includes the Residence frm Wrk Plicy. Life after Study: Internatinal students' settlement experiences in New Zealand 25

36 Student characteristic (reference grup) Age grup (23 and ver) Wrk Transitin pathway (1) Wrk t residence Residence Skilled Aged * * * * Aged * * * * Years since first permit (4 years) (2) 7 years (2003 chrt) 0.03 * 0.29 * 0.09 * 0.07 * 6 years (2004 chrt) 0.02 * 0.20 * 0.07 * 0.05 * 5 years (2005 chrt) * 0.03 * 0.02 * (1) The fur transitin pathways are: Wrk = transitin t wrk being apprved a wrk permit after study; Wrk t Residence = transitin t residence frm wrk being apprved permanent residence after hlding a wrk permit; residence = transitin t residence being apprved permanent residence after hlding a wrk permit r directly frm study; Skilled = transitin t skilled residence being apprved permanent residence thrugh a skilled migratin plicy after hlding a wrk permit r directly frm study. (2) The year a student s first student permit was apprved was taken as the starting pint. * The marginal effect was statistically significant at the 95 percent cnfidence level Key findings frm the regressin mdel Students frm India were significantly mre likely t transitin t wrk and/r residence than were students frm China. Students frm China generally had higher rates f transitin than students frm all ther regins. On average, the transitin rates fr students frm India fr all fur pathways were percentage pints higher than thse fr students frm China. Students studying at institutes f technlgy and plytechnics were mre likely than ther students t transitin using any f the fur pathways. The largest difference was in the wrk transitin rate, where students at institutes f technlgy and plytechnics had a rate, n average, 8 percentage pints higher than that f university students (the reference categry). When ther factrs were cntrlled fr, female students were significantly mre likely than male students t transitin using any f the fur pathways, althugh the differences were relatively small. On average, transitin rates were higher fr lder students than fr yunger students. On average, transitin rates fr all f the pathways increased ver time. 26 Life after Study: Internatinal students' settlement experiences in New Zealand

37 4 INTERNATIONAL STUDENTS MOTIVATIONS FOR CHOOSING NEW ZEALAND Highlights Mst frmer students in the Transitins Survey were Asian: students frm Nrth Asia (predminantly China) made up just ver half f all students, fllwed by students frm Suth-east Asia (16 percent) and Suth Asia (15 percent). English instructin and migratin pprtunities are key factrs in internatinal students chices abut where t study. The quality and cst f educatin were imprtant drivers fr ver half f respndents. Just ver ne-third f students wh transitined t residence as skilled migrants intended t apply fr residence frm the utset. Thirty-six percent f students sught qualificatins t help them gain permanent residence in New Zealand, and half f these respndents first came t New Zealand intending t apply fr permanent residence. 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 nly 56 percent chse t migrate t New Zealand fr jb pprtunities. 4.1 Intrductin We used the Department f Labur s Transitins Survey t explre the mtivatins and intentins f frmer students wh transitined t residence as principal migrants thrugh the Skilled Migrant Categry. This chapter explres the mtivatins f internatinal students wh chse New Zealand as a study destinatin, their intentins t apply fr permanent residence when they first came t New Zealand, and what mtivated them t apply fr permanent residence. Cnsistent with the analysis f immigratin administrative data described in chapter 3, mst frmer students in the Transitins Survey were Asian. Frmer students frm Nrth Asia (predminantly China) made up just ver half f all students, fllwed by students frm Suth-east Asia (16 percent) and Suth Asia (15 percent). Mst survey respndents (83 percent) were aged Internatinal students mtivatins t study in New Zealand There are several mtivating factrs fr chsing a study destinatin. Additinally, different reasns fr chsing t study in New Zealand may be assciated with different utcmes. Life after Study: Internatinal students' settlement experiences in New Zealand 27

38 Respndents in the Transitins Survey were students wh had gained permanent residence. Therefre, we expect the factrs that mtivated them t be different frm the factrs that mtivated students wh did nt stay n in New Zealand. Fr example, we wuld expect migratin-related mtivatins t be higher amng thse wh did becme permanent residents than amng thse wh left after cmpleting their study. Respndents were asked t rank the imprtance f varius factrs in influencing their decisin t study in New Zealand. 31 These factrs were categrised int lgical grups and tested fr cnsistency. 32 The findings shwed that internatinal students wh transitined t permanent residence as skilled migrants were mtivated t study in New Zealand by a variety f factrs, including migratin pprtunities, educatin, New Zealand being an English-speaking cuntry, and csts. Table 4.1 shws these categry grupings and the percentage wh chse at least ne f the factrs in the categry as extremely imprtant r very imprtant. Table 4.1 Factrs mtivating internatinal students t study in New Zealand Categry Mtivating factr Percentage chsing this factr (%) Percentage chsing this categry (%) Migratin pprtunities Educatin English language Csts Opprtunity t get a wrk permit after graduatin 44.1 Opprtunity t btain permanent residence in New Zealand at a later date 44.9 Opprtunity t btain New Zealand citizenship at a later date 29.7 Opprtunity t mve t a cuntry ther than New Zealand at a later date 21.5 Quality f New Zealand educatin 51.7 Internatinal recgnitin f New Zealand qualificatins 58.3 New Zealand being an Englishspeaking cuntry 60.5 Living csts in New Zealand 37.8 Cst f educatin in New Zealand Ease Easy t get a student visa Surce: Department f Labur, Transitins Survey ( ). These findings crrespnd t the internatinal literature that shws, amng ther factrs, that English instructin and migratin pprtunities are key factrs 31 Fr questin text and respnse ptins, see Appendix E. 32 The lgic f the grupings was tested using Crnbach s alpha. Sme factrs did nt crrelate well with ther factrs, s these have been reprted n separately. Fr example, English language was initially in the educatin categry, but these factrs did nt crrelate well tgether, s English language was mved int anther categry. 28 Life after Study: Internatinal students' settlement experiences in New Zealand

39 in internatinal students chices abut where t study. 33 The quality and cst f educatin were imprtant drivers fr ver half f the respndents. Different grups f students had different mtivatins. Students whse highest qualificatin was a bachelr s degree were mre likely t be mtivated t study in New Zealand by cst factrs (68 percent) than students whse highest qualificatin was vcatinal (49 percent). The average tuitin fee in 2007 fr an internatinal student at university was $17,000 cmpared with $12,000 at institutes f technlgy and plytechnics. 34 The differential in tuitin fees may mean cst was a greater cnsideratin fr university students than fr thse enrlling at institutes f technlgy and plytechnics. Students frm Eurpe, Suth Africa, and Nrth America (ESANA) and Nrth Asia were less likely t be mtivated by educatin factrs than were students frm Suth Asia, Suth-east Asia, and Other regins Internatinal students migratin intentins The availability f migratin pprtunities after study is an imprtant aspect that internatinal students cnsider when chsing their study destinatin. We examined the intentins f internatinal students t apply fr permanent residence when they first came t New Zealand t study. Respndents were asked abut their migratin intentins when they first came t New Zealand. Just ver ne-third (37 percent) f frmer students wh transitined t residence as skilled principal migrants intended t apply fr residence frm the utset. This finding suggests that many internatinal students d nt intend t migrate at the utset f their study, but change their plans after they arrive in New Zealand. Frmer students wh had gained a qualificatin in New Zealand befre being granted permanent residence were asked whether they had sught a qualificatin t help them gain permanent residence in New Zealand. 36 Thirty-six percent f students sught their qualificatins fr migratin purpses, and half f these same respndents (51 percent) said they first came t New Zealand with the intentin f applying fr permanent residence. This means that fr arund 13 percent f frmer students wh became skilled migrants qualificatins were, at least in part, a means t gaining permanent residence. 33 OECD Educatin at a Glance: OECD indicatrs. Paris: Organisatin fr Ecnmic Cperatin and Develpment, p The average tuitin fee was derived frm ttal tuitin incme divided by the number f equivalent full-time students, excluding GST: Ministry f Educatin Key Indicatrs fr Exprt Educatin Levy fr Full-Year. Available at data/assets/excel_dc/0008/74609/key-indicatrs-eel xls 35 Fr infrmatin n regin grupings, see Appendix G. 36 Fr the questin text, see Appendix E. Life after Study: Internatinal students' settlement experiences in New Zealand 29

40 Students whse highest New Zealand qualificatin was vcatinal were mre likely t reprt that they sught this qualificatin t help them gain permanent residence (Figure 4.1). The shrter length f time required, n average, t gain a vcatinal qualificatin and the lwer average tuitin fees at institutes f technlgy and plytechnics and private training establishments may be factrs that cntribute t this result. 37 Figure 4.1 Prprtin f respndents wh sught qualificatins t help gain permanent residence by highest qualificatin gained in New Zealand Prprtin wh sught qualificatins t help gain permanent residence (%) Vcatinal qualificatin Bachelr's degree Higher degree Highest qualificatin gained in New Zealand Surce: Department f Labur, Transitins Survey ( ). 4.4 Internatinal students mtivatin t apply fr permanent residence in New Zealand This sectin lks at what factrs mtivated frmer students t apply fr permanent residence in New Zealand. Only ne-third f frmer students wh transitined t residence as skilled migrants intended t apply fr permanent residence when they first came t New Zealand t study. A similar exercise t that described in sectin 4.2 (which gruped mtivatins t study in New Zealand) was cnducted fr mtivatins t apply fr permanent residence in New Zealand. Table 4.2 shws the grupings and the percentage wh chse at least ne f the factrs in each categry as extremely imprtant r very imprtant. Fr internatinal students wh transitined t residence, the mst imprtant factrs that influenced their decisin t apply fr permanent residence were lifestyle and safety and security (80 percent fr each categry). Within these brad categries the highest ranking factrs were New Zealand s clean and green envirnment, the relaxed pace f life, and safety frm crime and vilence. 37 Ministry f Educatin Key Indicatrs fr Exprt Educatin Levy fr Full-Year. Available at data/assets/excel_dc/0008/74609/key-indicatrs-eel xls 30 Life after Study: Internatinal students' settlement experiences in New Zealand

41 Table 4.2 Factrs mtivating internatinal students t apply fr permanent residence Categry Mtivating factrs Percentage chsing this factr (%) Percentage chsing this categry (%) Lifestyle Safety and security Educatin Wrk and living csts Family New Zealand s clean and green envirnment 66.2 New Zealand s relaxed pace f life 60.5 Gd husing in New Zealand 32.6 New Zealand s small ppulatin 31.5 Availability f services in New Zealand 42.1 Recreatin and leisure activities available in New Zealand 41.9 Climate (fr example, weather) 40.9 Plitical stability and lack f crruptin in New Zealand 54.7 Freedm f religius and plitical expressin in New Zealand 51.2 New Zealand s safety frm crime and vilence 63.8 Inter-racial, ethnic, r religius harmny 45.6 Educatinal pprtunities in New Zealand 54.1 Educatinal pprtunities fr children in New Zealand 54.9 Jb pprtunities in New Zealand 55.5 Living csts in New Zealand 38.2 Opprtunities t bring family t New Zealand 40.9 Securing a place fr the family t live if desired in the future Surce: Department f Labur, Transitins Survey ( ). Educatin cnsideratins cntinued t play a rle in frmer students decisin making, with arund tw-thirds f frmer students specifying educatinal pprtunities (including educatin fr children) as an extremely r very imprtant factr. Frmer students frm Nrth Asia and ESANA were less likely t be mtivated by educatin factrs in their decisin t apply fr permanent residence in New Zealand. Ecnmic-related mtivatins were relatively weak pull factrs fr internatinal students. Only 56 percent chse t migrate t New Zealand fr jb pprtunities. Althugh jb pprtunities in New Zealand are nt as attractive t internatinal students as ther features f New Zealand, emplyment is likely t be a key cntributr t retaining these migrants in New Zealand. The fllwing chapter examines labur frce utcmes in mre detail. Life after Study: Internatinal students' settlement experiences in New Zealand 31

42 5 SETTLEMENT OUTCOMES OF INTERNATIONAL STUDENTS WHO GAINED RESIDENCE Highlights Of Lngitudinal Immigratin Survey: New Zealand (LisNZ) respndents wh were frmer internatinal students, the tw largest surce cuntries were China (43 percent) and India (9 percent). Mst frmer students were apprved fr residence thrugh the skilled migratin categries (63 percent). Arund half f the students surveyed in LisNZ had a vcatinal qualificatin (25 percent) r bachelr s degree (23 percent) as their highest qualificatin gained in New Zealand. Management and cmmerce (51 percent) was the mst cmmn field f study acrss the range f qualificatins gained in New Zealand. Almst half (49 percent) f the frmer students were emplyed full time 6 mnths and 18 mnths after taking up residence. The mst cmmn difficulty frmer students experienced when seeking wrk was a lack f New Zealand wrk experience (38 percent at 6 mnths and 21 percent at 18 mnths after taking up residence). The real median hurly earnings frm wages and salaries fr frmer students increased frm $16.65 per hur at 6 mnths t $18.05 per hur at 18 mnths after taking up residence. Overall, frmer students reprted high levels f satisfactin with life in New Zealand. 5.1 Intrductin This chapter examines the shrt- and medium-term settlement utcmes f frmer internatinal students wh transitined t permanent residence. This analysis uses data frm the Lngitudinal Immigratin Survey: New Zealand (LisNZ). By using a lngitudinal survey t measure settlement utcmes fr frmer internatinal students we can track hw utcmes change ver time. LisNZ is a survey f permanent migrants t New Zealand, sme f whm were frmer internatinal students. 38 LisNZ invlved the interviewing f the same migrants at 6 mnths (wave 1), 18 mnths (wave 2), and 36 mnths (wave 3) after taking up permanent residence. The analysis in this reprt includes peple wh were interviewed at waves 1 and There were ver 6,000 respndents at 38 Fr further details, see sectin LisNZ wave 3 data was nt yet available. 32 Life after Study: Internatinal students' settlement experiences in New Zealand

43 wave 2, f whm 1,083 identified as students. The verall respnse rate was 66 percent at wave 1 and 86 percent at wave Main characteristics f students in LisNZ The attributes f frmer internatinal students in LisNZ clsely represent the attributes f students in bth the immigratin administrative data and the Transitins Survey. In LisNZ, mst frmer students were frm Asia (71 percent), with just ver half (52 percent) frm Nrth Asia, 10 percent frm Suth Asia, and 9 percent frm Suth-east Asia. 41 Within each f these brad categries, sme cuntries f rigin are mre dminant than thers (see Appendix G). Of LisNZ respndents wh were frmer internatinal students, the tw largest surce cuntries were China (43 percent) and India (9 percent). Mst frmer students were apprved fr residence thrugh the skilled migratin categries (63 percent), which is cnsistent with the transitin pathways described in sectin 3.6. The ther main pathways t permanent residence were thrugh the Family Partner Categry (22 percent) and Business categries (10 percent). The mean age f frmer students at wave 2 f LisNZ was 28. Mst students had a gd level f English language ability, which reflects the high prprtin apprved as skilled migrants and the language requirements assciated with the skilled migrant plicies. Thirty-eight percent reprted that English was the main language they spke, and a further 55 percent had very gd r gd English prficiency. 5.3 Qualificatins and study f frmer internatinal students This sectin examines frmer internatinal students highest qualificatins gained in New Zealand and the assciated fields f study. This infrmatin, cupled with infrmatin n enrlments frm sectin 2.1, allws us t better understand the types f study that cntribute t students success in gaining permanent residence. 40 Fr mre infrmatin n the calculatin f respnse rates fr this survey, see Statistics New Zealand. N date. Lngitudinal Immigratin Survey: New Zealand Wave 2, Available at d_hotpw208/technical%20ntes.aspx 41 Regin f rigin data has been aggregated due t the small sample size. The categries reprted are ESANA (Eurpe, Suth Africa, and Nrth America), Nrth Asia, Suth Asia, Suth-East Asia, and Other (cmprising the Middle East, Latin America, Africa (excluding Suth Africa), and the Pacific). Life after Study: Internatinal students' settlement experiences in New Zealand 33

44 5.3.1 Highest qualificatin gained in New Zealand Arund half f the students surveyed in LisNZ had gained a vcatinal qualificatin (25 percent) r bachelr s degree (23 percent) as their highest qualificatin in New Zealand. A further 10 percent had gained a higher degree. The remaining 42 percent held n pst-schl New Zealand qualificatin when they gained residence. Students frm Nrth Asia (33 percent) and Suth-east Asia (27 percent) were mre likely t have gained a bachelr s degree as their highest qualificatin in New Zealand. Students frm Suth Asia (25 percent) were the mst likely t have gained a higher degree (see Figure 5.1). Figure 5.1 Highest qualificatin gained in New Zealand by regin f rigin Prprtin (%) ESANA(1) Nrth Asia Suth Asia Suth East Asia Other(2) Ttal N pst-schl qualificatin Bachelr's degree Vcatinal qualificatin Higher degree(3) (1) ESANA = Eurpe, Suth Africa, and Nrth America. (2) Other means the Middle East, Latin America, Africa (excluding Suth Africa), and the Pacific. (3) Higher degree includes a pstgraduate certificate r diplma, master s degree, and dctrate. Surce: Lngitudinal Immigratin Survey: New Zealand (LisNZ). Sme f these trends are als evident in the administrative data n enrlments, which shwed a higher prprtin f students frm China enrlled in universities and a higher prprtin f students frm India enrlled in pstgraduate and diplma-level curses. Of thse frmer students withut a pst-schl qualificatin, arund half were apprved thrugh the Family Partner (31 percent) r Business (20 percent) Categry. Mst f the remainder came thrugh the skilled migratin categries skilled secndary (28 percent) and skilled principal (16 percent) Field f study f highest qualificatin gained in New Zealand Management and cmmerce was the mst cmmn field f study fr pst-schl qualificatins gained in New Zealand, reprted by just ver half (51 percent) f all frmer students. Fifty-eight percent f frmer internatinal students frm China studied in this field. Table 5.1 shws the tp five fields f study acrss the range f qualificatins gained in New Zealand. 34 Life after Study: Internatinal students' settlement experiences in New Zealand

45 Table 5.1 Tp five fields f study by respndents highest qualificatin gained in New Zealand Field f study Management and Cmmerce Infrmatin technlgy Engineering and related technlgies Highest qualificatin gained in New Zealand (%) Vcatinal qualificatin Bachelr s degree Higher degree (1) Ttal stated (%) c Sciety and culture Health Nte:..c = suppressed fr cnfidentiality reasns. (1) A higher degree includes a pst-graduate diplma and certificate, an hnur s degree, a master s degree, and a dctrate. Surce: Lngitudinal Immigratin Survey: New Zealand (LisNZ). The secnd mst cmmn field f study verall was infrmatin technlgy (15 percent), fllwed by engineering and related technlgies. One-fifth (20 percent) f frmer students frm India gained their highest qualificatin in engineering and related technlgies. Management and cmmerce is als ne f the tp brad fields f study fr the highest qualificatin gained by the New Zealand usually resident ppulatin, with 18 percent f the ppulatin having cmpleted study in this field at the time f the 2006 census. 42 Hwever, the prprtin f internatinal students wh had studied in the field f management and cmmerce was larger than the prprtin f the ttal usually resident ppulatin f New Zealand wh had. 43 Figure 5.2 cmpares the tp five fields f study fr frmer internatinal students with thse f the census usually resident ppulatin. 42 Usually resident ppulatin aged 15 years and ver with a pst-schl qualificatin wh stated their field f study (2006 Census f Ppulatin and Dwellings). 43 Direct cmparisn with the census is prblematic fr several reasns. One limitatin is that the LisNZ sample includes nly thse wh have a qualificatin gained in New Zealand while the census includes all pst-schl qualificatins, including thse gained verseas. Anther limitatin is the reference perid: the qualificatins fr the LisNZ sample will have largely been gained in the last 10 years (as the sample became permanent residents between 2004 and 2005 and mst wuld have undertaken their New Zealand study in the 5 years befre this), while the census reference perid will be significantly larger. Life after Study: Internatinal students' settlement experiences in New Zealand 35

46 Figure 5.2 Tp five fields f study fr frmer internatinal students frm the Lngitudinal Immigratin Survey: New Zealand and the 2006 Census f Ppulatin and Dwellings Prprtin (%) Management and Cmmerce Infrmatin Technlgy Engineering and Related Technlgies Sciety and Culture Health Field f highest qualificatin LisNZ 2006 Census Surce: Lngitudinal Immigratin Survey: New Zealand (LisNZ) and 2006 Census f Ppulatin and Dwellings frm Statistics New Zealand. The tp five fields f study fr highest qualificatin gained in New Zealand frm LisNZ bradly align with the tp internatinal student enrlments (see Table 2.3). Key differences are the absence f natural and physical sciences in the tp fields f study fr thse wh transitined t permanent residence and the lwer prprtin f frmer students whse highest qualificatin was gained in the field f sciety and culture. Sme f these differences may be explained by the different reference years r students gaining anther qualificatin in a higher field. Hwever, these results suggest that transitin rates t residence are lwer fr thse wh gained their highest qualificatin in the fields f sciety and culture and natural and physical sciences than in ther fields f study Other qualificatins held by frmer internatinal students Sme internatinal students wh undertake pst-schl study in New Zealand have cmpleted pst-schl qualificatins in ther cuntries. When assessing utcmes fr students based n the study they have undertaken in New Zealand, we need t bear in mind utcmes als vary, depending n, amng ther things, the ther qualificatins these students hld and their wrk experience frm verseas and New Zealand. Overall, almst a quarter f frmer students (24 percent) had cmpleted their highest pst-schl qualificatin verseas. Frty-ne percent f frmer students frm Suth Asia gained their highest pst-schl qualificatin verseas. Frmer students wh had n pst-schl qualificatin gained in New Zealand r a vcatinal qualificatin gained in New Zealand were mre likely t have gained their highest pst-schl qualificatin verseas (35 percent and 32 percent respectively) than frmer students with a bachelr s degree (6 percent) r higher degree (7 percent). 36 Life after Study: Internatinal students' settlement experiences in New Zealand

47 5.3.4 Additinal study undertaken in New Zealand since gaining permanent residence Many frmer students cntinue r re-enter study after gaining permanent residence. This suggests that gaining residence is ne gal but nt the sle gal f many internatinal students. New migrants experience an entry disadvantage in New Zealand with, n average, lwer emplyment rates and lwer incmes than thse f New Zealand brn peple. 44 Re-entering study t augment qualificatins may be a way fr internatinal students t imprve their emplyment prspects. Several study patterns are pssible after a student is apprved fr residence. Fr example, students may cntinue t study after gaining residence, they may reenter study after taking up residence fllwing a break frm study (during which time they may r may nt have been emplyed), r they may undertake study while emplyed. By wave 2 f LisNZ, almst half (48 percent) the frmer students had dne ther study (excluding English language study) in New Zealand since gaining residence. 45 Six mnths after gaining residence (wave 1), 23 percent f frmer students were ut f the labur frce and studying, and 19 percent were ut f the labur frce and studying 18 mnths pst-residence (wave 2). Furteen percent were studying at bth waves. Different grups f frmer students were mre r less likely t be engaged in additinal study. Fr example, arund a third (35 percent) f frmer students with n pst-schl qualificatins were ut f the labur frce and studying at wave 2, whereas 9 percent f frmer students wh had transitined t residence as skilled principal applicants were studying at wave 2. Of thse frmer students wh had dne ther study, mst (81 percent) had studied twards frmal qualificatins. 46 The main reasns given by frmer students fr ding additinal study twards frmal qualificatins were t get their qualificatin upgraded (44 percent), t get a jb (30 percent), r t get a better jb (37 percent). University was the mst cmmn place f study (64 percent), fllwed by institutes f technlgy and plytechnics (22 percent). This may be because university qualificatins generally take lnger t cmplete (sme students gained residence befre cmpleting their qualificatin) and are easier t upgrade (fr example, frm a bachelr s t a higher degree). Furthermre, internatinal students pay dmestic tuitin fees after gaining residence, which culd be a reasn fr their taking the mre expensive university curses after being apprved fr residence. 44 S Stillman and D Maré The Labur Market Adjustment f Immigrants in New Zealand. Ecnmic Impacts f Immigratin Wrking Paper Series. Wellingtn: Department f Labur. 45 Fr the questin text, see Appendix F. 46 A frmal qualificatin invlves at least 3 mnths full-time study r the equivalent. Life after Study: Internatinal students' settlement experiences in New Zealand 37

48 5.4 Cmparisn f frmer students emplyment and labur frce utcmes with thse f ther migrants The fllwing sectins assess the labur market utcmes f frmer students at 6 mnths (wave 1) and 18 mnths (wave 2) after gaining residence in New Zealand. Fr thse frmer students wh entered the labur frce, LisNZ can be used t assess the types f jbs they hld, their incme, and their jb satisfactin. When cmparing the utcmes f frmer students with thse f ther migrants, we must cnsider the different cmpsitins f migrant ppulatins. Frmer students are typically yunger than ther migrants, tend t have relatively little wrk experience, and may be less prficient in English. Therefre, we expect frmer students t have less favurable labur market utcmes in the shrt t medium term Emplyment status New Zealand generally achieves psitive emplyment utcmes fr new migrants. Psitive labur market experiences fr frmer internatinal students play an integral rle in New Zealand s ability t attract and develp students wh have the skills and talents New Zealand needs. 47 LisNZ prvides infrmatin n the labur market utcmes f frmer students wh gained residence. The prprtin f frmer students in full-time emplyment increased frm 55 percent at wave 1 t 68 percent at wave 2. A similar prprtin f frmer students remained ut f the labur frce at wave 1 (31 percent) and wave 2 (26 percent). Five percent f frmer students were lking fr wrk at wave 1 and 3 percent at wave Overall, arund half f the frmer students (49 percent) were emplyed full time at bth waves. Table 5.2 Emplyment status f frmer students, waves 1 and 2 f the Lngitudinal Immigratin Survey: New Zealand Emplyment status at wave 1 Emplyment status at wave 2 (%) Full-time Part-time Lking fr wrk Other activity Ttal Full-time Part-time Lking fr wrk c Other activity (1) Ttal Ntes:..c = suppressed fr cnfidentiality reasns. Due t runding, percentages may nt sum t Immigratin New Zealand s Operatinal Plicy Manual is available nline: Immigratin New Zealand. N date. Immigratin New Zealand Operatins Manual: Online peratins manual. Available at 48 The prprtin f students nt in emplyment and lking fr wrk ut f the ttal f thse emplyed (full time r part time) r lking fr wrk. 38 Life after Study: Internatinal students' settlement experiences in New Zealand

49 (1) Other activities included studying, at hme caring fr dependants, getting set up in New Zealand (fr example, rganising husing and educatin), and ther activities. Surce: Lngitudinal Immigratin Survey: New Zealand (LisNZ). Different grups f frmer students had different emplyment utcmes. Fulltime emplyment at bth waves was higher fr frmer students wh gained a vcatinal qualificatin (62 percent), a bachelr s degree (63 percent), r a higher degree (68 percent) in New Zealand than fr thse wh held n pstschl qualificatin in New Zealand (30 percent). Acrss the main surce cuntries, frmer students frm India were mre likely t be in full-time emplyment at bth waves (85 percent) than were thse frm China (48 percent). At each wave, 90 percent f frmer students frm India were in full-time emplyment. In cmparisn, at wave 1 just ver half f the frmer students frm China were in full-time emplyment (56 percent), althugh at wave 2 this had increased t 71 percent. Mst f thse frmer students frm China wh were nt in full-time emplyment at wave 2 were ut f the labur frce (24 percent); tw-thirds f these (66 percent) were studying. Frmer students with n New Zealand pst-schl qualificatin were mre likely t be ut f the labur frce at wave 1 (49 percent) and wave 2 (42 percent) than thse wh held a New Zealand pst-schl qualificatin. Frmer students wh transitined t residence as skilled principal migrants were mre likely t be ut f the labur frce at wave 2 (10 percent) than ther skilled principal migrants (4 percent). The transitin int full-time emplyment was higher fr frmer students wh transitined t residence as skilled principal migrants: 85 percent were in fulltime emplyment at wave 2, up frm 78 percent in wave 1. This cmpared with 95 percent f all ther skilled principal migrants in wave 2. The percentage f respndents lking fr wrk was 1.9 percent fr skilled frmer students and 0.5 percent fr all ther skilled migrants at wave Barriers t finding wrk that frmer internatinal students face This sectin lks at frmer students perceptins f barriers t finding wrk in New Zealand. Frmer students transitin int emplyment is an imprtant bjective, and understanding the barriers they face in finding wrk in New Zealand can help us identify what assistance migrants might need in future. Migrants were asked abut the difficulties they faced when trying t find wrk in New Zealand. 49 Arund half f the frmer students (54 percent) reprted at wave 1 that they faced difficulties finding wrk in New Zealand. Thse wh had changed jbs r had spells f unemplyment between waves were asked again at wave 2 abut emplyment barriers. At wave 2, 41 percent reprted facing difficulties. The mst cmmn difficulty experienced was a lack f New Zealand wrk experience, which was reprted by 38 percent f frmer students at wave Fr the questin text, see Appendix F. Life after Study: Internatinal students' settlement experiences in New Zealand 39

50 Smaller prprtins reprted that they had experienced discriminatin because f being a migrant (11 percent), they did nt have the skills r experience fr the jbs available (10 percent), r their skills and experience were nt accepted by New Zealand emplyers (10 percent). At wave 2, a lack f New Zealand wrk experience was again the mst cmmnly reprted difficulty, reprted by 21 percent f frmer students Occupatin f frmer internatinal students The mst cmmn ccupatinal grup in which frmer students were emplyed at wave 2 was prfessinals (31 percent), fllwed by managers, sales wrkers, and clerical and administrative wrkers. The tp ranking sub-majr ccupatin grup was sales assistants and salespersns (see Table 5.3). Table 5.3 Ten mst cmmn ccupatins at wave 2 f the Lngitudinal Immigratin Survey: New Zealand Rank Occupatin (sub-majr grup) (1) Percentage (%) 1 Sales assistants and salespersns (2) Business, human resurce and marketing prfessinals (2) Infrmatin and cmmunicatin technlgy prfessinals Hspitality, retail and service managers (2) Specialist managers (2) Numerical clerks Health prfessinals (2) Design, engineering, science and transprt prfessinals Engineering, Infrmatin and cmmunicatin technlgy, and science technicians 10= Chief executives, general managers and legislatrs (2) = Hspitality wrkers 3.0 All thers 36.0 Ntes: Due t runding, percentages may nt sum t 100. (1) Occupatin is a hierarchical classificatin with five levels. The sub-majr grup level f the Australian and New Zealand Standard Classificatin f Occupatins has 43 categries. See Australian Bureau f Statistics ANZSCO Australian and New Zealand Standard Classificatin f Occupatins. Revisin 1. Available at (2) This ccupatin was als in the tp 10 ccupatins fr the 2006 Census f Ppulatin and Dwellings usually resident ppulatin aged 15 and ver. Surce: Lngitudinal Immigratin Survey: New Zealand (LisNZ). The main ccupatins fr frmer students were cmparable t main ccupatins fr the 2006 census usually resident ppulatin. Sales assistants and salespersns was the secnd mst cmmn ccupatin fr the New Zealand usually resident ppulatin, and, in ttal, six f the tp 10 ccupatins were shared Life after Study: Internatinal students' settlement experiences in New Zealand

51 Minimal cmparisns culd be made between the tp five fields f study (see Table 5.4). 50 Frmer students wh studied in the health field were mre likely t be emplyed in the brad ccupatin grup prfessinals (65 percent) than were students wh studied in the fields f engineering and related technlgies (28 percent), sciety and culture (22 percent), r management and cmmerce (16 percent). Arund three-quarters f frmer students (77 percent) were in the same ccupatinal grup at bth waves. Table 5.4 shws the tp 10 ccupatinal grups f frmer students apprved as skilled principal applicants. At wave 2, the mst cmmn ccupatinal grups were business, human resurces, and marketing prfessinal (13 percent), ICT prfessinals (10 percent), and specialist managers and health prfessinals (7 percent each). Table 5.4 Ten mst cmmn ccupatins at wave 2 f frmer students apprved as skilled principal migrants Occupatin (sub-majr grup) (1) Percentage (%) Business, human resurce and marketing prfessinals 12.9 Infrmatin and cmmunicatin technlgy prfessinals 10.3 Specialist managers 7.2 Health prfessinals 7.2 Numerical clerks 6.7 Design, engineering, science and transprt prfessinals 5.7 Sales assistants and salespersns 5.2 Engineering, Infrmatin and cmmunicatin technlgy, and science technicians Hspitality, retail and service managers 4.1 Chief executives, general managers and legislatrs 3.6 All thers 31.4 Ttal Ntes: Due t runding, percentages may nt sum t 100. (1) Occupatin is a hierarchical classificatin with five levels. The sub-majr grup level f the Australian and New Zealand Standard Classificatin f Occupatins has 43 categries. See Australian Bureau f Statistics ANZSCO Australian and New Zealand Standard Classificatin f Occupatins. Revisin 1. Available at Surce: Lngitudinal Immigratin Survey: New Zealand (LisNZ) Small numbers did nt allw detailed analysis f the match between a frmer student s field f study and their current ccupatin. There des appear t be a gd match between the five main ccupatin grups that were nt shared with the 2006 census, and sme f the main fields f study fr frmer students highest qualificatin gained in New Zealand (infrmatin technlgy and engineering and related technlgies). Life after Study: Internatinal students' settlement experiences in New Zealand 41

52 5.4.4 Skill level f main jb Anther useful measurement f emplyment utcmes fr frmer students is the skill level f the ccupatin in which the frmer student is emplyed. Skill levels range frm skill level 1 fr the highest skilled psitins t skill level 5 fr the lwest skilled. 51 Fr this analysis, jbs with a skill level f 1, 2, r 3 are reprted as a high-skill jb and jbs with a skill level f 4 r 5 are reprted as a lw-skill jb. The skill level is assciated with the students main jb at the time f the interview. Arund half f frmer students were emplyed in a high-skill jb at bth wave 1 and wave 2. Althugh 11 percent mved t a high-skill jb frm a lw-skill jb at wave 1, almst as many (10 percent) mved in the ther directin. Arund tw-thirds (65 percent) f frmer students wh transitined t residence as skilled principal migrants were emplyed in a high-skill jb at bth waves cmpared with 86 percent f ther skilled principal migrants. Frmer students with a higher degree (77 percent) r bachelr s degree (62 percent) gained in New Zealand were mre likely t hld a high-skill jb at bth waves than were thse with either n qualificatin r a vcatinal qualificatin gained in New Zealand (see Table 5.5). Table 5.5 Skill level f emplyed frmer students main jb by highest qualificatin gained in New Zealand Highest qualificatin gained in New Zealand (%) Skill level Vcatinal Bachelr s degree Higher degree (1) N pstschl Pstschl undefined Ttal High skill at bth waves Lw skill at wave 1, high skill at wave 2 High skill at wave 1, lw skill at wave 2 Lw skill at bth waves c c Ttal (percent) Ntes:..c = suppressed fr cnfidentiality reasns. Due t runding, percentages may nt sum t 100. (1) A higher degree includes pst-graduate diplmas and certificates, hnurs degrees, master's degrees and dctrate degrees. Surce: Lngitudinal Immigratin Survey: New Zealand (LisNZ). At wave 2, 85 percent f frmer students with a higher degree gained in New Zealand were emplyed in high-skill jbs cmpared with 69 percent f 51 Skill levels are assigned t ccupatins based n the ANZSCO classificatin. Fr mre infrmatin abut ANZSCO skill levels, see the LisNZ page n the Statistics New Zealand website: 42 Life after Study: Internatinal students' settlement experiences in New Zealand

53 frmer students with a bachelr s degree and 55 percent with a vcatinal qualificatin. There were n significant differences in jb skill level based n regin f rigin. Sample numbers were t small fr us t analyse jb skill level and the field f study f the highest qualificatin gained in New Zealand fr all but the fur largest fields f study. On average, arund half f the frmer students wh gained their highest New Zealand qualificatin in the field f engineering and related technlgies (54 percent), infrmatin and cmmunicatin technlgy (58 percent), r management and cmmerce (44 percent) were in a high-skill jb at bth waves cmpared with arund tw-thirds f the ther fields cmbined. There were n significant differences between these three different fields f study. While numbers were small, frmer students whse highest qualificatin in New Zealand was in the field f health were mre likely t be in a high-skill jb at bth waves (see Table 5.6). Table 5.6 Skill level f emplyed frmer students main jb by field f study fr highest qualificatin gained in New Zealand Field f study f highest New Zealand qualificatin (%) Skill level Engineering and related technlgies Infrmatin and cmmunicatin technlgy Management and cmmerce Health All ther fields High skill at bth waves Lw skill at wave 1, high skill at wave 2 High skill at wave 1, lw skill at wave 2 Lw skill at bth waves c c c 16.7 Ttal (%) Ttal (weighted) , Ntes:..c = suppressed fr cnfidentiality reasns. Due t runding, percentages may nt sum t 100. Surce: Lngitudinal Immigratin Survey: New Zealand (LisNZ) Incme frm wages and salaries Satisfactry remuneratin plays an imprtant rle in migrants settlement in New Zealand. The incme frmer students earn frm wages and salaries gives an indicatin abut hw emplyed frmer students are perfrming in the labur market. The real median hurly earnings frm wages and salaries fr frmer students increased frm $16.65 per hur at wave 1 t $18.05 per hur at wave 2, an increase f 8.4 percent. At wave 1, median hurly earnings were highest fr students wh had gained a higher degree ($19.34 per hur) r a bachelr s degree in New Zealand ($18.03 per hur) and ranged frm $14.00 t $16.16 per Life after Study: Internatinal students' settlement experiences in New Zealand 43

54 hur fr students with n qualificatin r a vcatinal qualificatin gained in New Zealand. Frmer students reprted English t be their main language r have very gd r gd English language ability had higher median hurly earnings than thse with mderate r pr English language ability. Real wages decreased between wave 1 and wave 2 fr frmer students with mderate r pr English language ability (Table 5.7). Table 5.7 Median hurly earnings frm wages and salaries by selected characteristics Median hurly earnings (1) ($) Selected characteristics Wave 1 Wave 2 Change frm wave 1 t wave 2 (%) Highest New Zealand qualificatin N pst-schl qualificatin Vcatinal qualificatin Bachelr s degree Higher degree Pst-schl undefined Regin f rigin ESANA (2) Nrth Asia Suth Asia Suth-east Asia Other (3) Gender Male Female English language ability English is a main language spken Very gd/gd English language ability Mderate/pr English language ability Ttal (1) This analysis includes respndents wh were earning wages r salaries at bth waves. The hurly rate is calculated as the weekly incme frm wages and salaries divided by the number f hurs wrked. Nminal hurly earnings have been inflatin-adjusted t reflect real wages in (2) ESANA = Eurpe, Suth Africa, and Nrth America. (3) Other means the Middle East, Latin America, Africa (excluding Suth Africa), and the Pacific. Surce: Lngitudinal Immigratin Survey: New Zealand (LisNZ). Frmer students wh transitined as skilled principal migrants had lwer median hurly earnings than ther skilled principal migrants at bth waves. Skilled students earned, n average, percent f the median hurly earnings f all ther skilled principal migrants. 44 Life after Study: Internatinal students' settlement experiences in New Zealand

55 5.4.6 Jb satisfactin Jb satisfactin is als an imprtant emplyment utcme cntributing t New Zealand s ability t retain migrants. Overall, 77 percent f frmer students wh were emplyed said they were satisfied r very satisfied with their jb at wave 2 cmpared with 74 percent at wave 1. Just ver 60 percent said they were satisfied r very satisfied at bth waves. Frmer students whse highest New Zealand qualificatin was a higher degree were mre likely t reprt being satisfied r very satisfied with their jb at wave 2 (92 percent) than were thse with lwer-level qualificatins. Frmer students frm Nrth Asia were less likely t be satisfied r very satisfied with their jb at wave 2 (67 percent) than were thse frm ther regins. The main reasn given by thse frmer students reprting dissatisfactin with their jb at wave 2 was that the pay was t lw (68 percent). 5.5 Settlement and satisfactin with life in New Zealand Frmer students psitive settlement int life in New Zealand and their satisfactin with their life here are imprtant indicatrs f their wellbeing and adjustment. Their intentin t stay n in New Zealand is als an imprtant indicatr f New Zealand s ability t retain internatinal students after they have transitined t permanent residence Frmer students settlement in New Zealand Three-quarters f frmer students reprted feeling very settled r settled at bth waves (86 percent at wave 1 and 84 percent at wave 2). Very few reprted feeling unsettled r very unsettled at bth waves (less than 1 percent). It is pssible, hwever, that migrants with pr settlement experiences had left New Zealand, s were nt captured in the survey data. At wave 2, frmer students wh had transitined t residence as skilled principal applicants were less likely t reprt feeling very settled r settled (81 percent) cmpared with ther skilled principal applicants (92 percent). Mst f thse wh did nt feel settled reprted that they felt neither settled nr unsettled (15 percent). Frmer students frm Nrth Asia (78 percent) were less likely t reprt feeling very settled r settled cmpared with frmer students frm ESANA (98 percent), Suth-east Asia (91 percent), and Other regins (93 percent) Satisfactin with life in New Zealand Overall, frmer students reprted high levels f satisfactin with life in New Zealand, with 91 percent reprting feeling satisfied r very satisfied at wave 1 and 87 percent at wave 2. Arund fur-fifths (83 percent) reprted feeling satisfied r very satisfied at bth waves. Life after Study: Internatinal students' settlement experiences in New Zealand 45

56 Frmer students frm Nrth Asia were als less likely than students frm ther regins t reprt feeling satisfied r very satisfied with life in New Zealand at wave 2 (79 percent) Frmer students intentins t stay in New Zealand Measuring frmer students intentins t stay in New Zealand after gaining permanent residence is a useful gauge f whether New Zealand will retain these migrants. Frmer students were asked at waves 1 and 2 whether they intended t stay in New Zealand fr less than 3 years r fr 3 years r mre. Mst (97 percent) intended t stay in New Zealand fr 3 years r mre at wave 1, but at wave 2 this was slightly lwer (91 percent). Table 5.8 Years respndents intended t stay in New Zealand at wave 1 and wave 2 Intentins at wave 1 Less than 3 years Intentins at wave 2 Three years r mre Ttal Less than 3 years Three years r mre Ttal Nte: Due t runding, percentages may nt sum t 100. Surce: Lngitudinal Immigratin Survey: New Zealand (LisNZ). 46 Life after Study: Internatinal students' settlement experiences in New Zealand

57 6 CONCLUSION Internatinal students play an imprtant rle in New Zealand s ecnmy, generating an ecnmic benefit f ver $2.3 billin annually and supprting ver 32,000 jbs. In additin t these ecnmic benefits, internatinal educatin can als build institutins academic reputatin and imprve the cst-efficiency f educatin prvisin. 52 The lng-term trends shw that almst ne-third (31 percent) f fee-paying internatinal students transitin t wrk and/r permanent residence in New Zealand. Thrugh their studies and time spent in New Zealand, internatinal students can gain knwledge f lcal wrk practices and regulatins, imprve their prficiency in English, and develp their understanding f lcal scial and cultural nrms. This experience makes internatinal student graduates highly attractive as ptential migrants t New Zealand. Understanding the factrs relating t the successful retentin and settlement f internatinal students in New Zealand will cntribute t plicies and services that can better supprt this segment f the migrant ppulatin. This research shws that plicies that facilitate internatinal students staying n in New Zealand have been imprtant in attracting internatinal students and prvide an avenue thrugh which t retain these students as skilled migrants. Psitive emplyment and settlement utcmes are imprtant fr the hst cuntry and the new migrant. This reprt shws that frmer internatinal students perfrm well in the labur market and have high rates f settlement and satisfactin with their life in New Zealand. In general terms, frmer internatinal students wh gain a bachelr s degree r higher qualificatin in New Zealand achieve better labur market utcmes than thse wh gain lwer-level qualificatins. Students frm India have high rates f transitin frm study t residence and high rates f emplyment. The results shw that internatinal students make a psitive cntributin t the ecnmic and scial fabric f New Zealand. Future research in this area culd pursue several avenues. Wave 3 f LisNZ will allw further analysis f settlement utcmes with particular attentin t change ver time. Regressin analysis wuld be a useful technique t explre the factrs that cntribute t varius utcmes. Immigratin administrative data culd be used t examine student retentin in New Zealand thrugh the analysis f lngterm departure data. Given the internatinal interest in exprt educatin, it may be wrth cmparing the migratin experiences f internatinal students in New Zealand with thse in ther cuntries. 52 OECD Educatin at a Glance: OECD indicatrs. Paris: Organisatin fr Ecnmic C- Operatin and Develpment, p 310. Life after Study: Internatinal students' settlement experiences in New Zealand 47

58 APPENDICES Appendix A: Additinal ntes n the data surces Definitin f the student ppulatin Each f the three primary data surces determines the student ppulatin slightly differently (see Table 1.3). Althugh it wuld be mre desirable t use a cnsistent apprach t defining this ppulatin, the limitatins f the data sets prevent this. 53 Fr simplicity f reprting, respndents wh have been identified as students in the survey data sets are referred t as frmer students, regardless f whether they were still studying. Reginal grupings Due t smaller numbers in sample surveys cmpared with administrative recrds, mre-detailed analysis is smetimes limited. T accmmdate the smaller numbers, reprting units fr regin f rigin have been gruped int the brader regins f ESANA (Eurpe, Suth Africa, and Nrth America), Nrth Asia (including China, Japan, and Suth Krea), Suth Asia (including India), Sutheast Asia, and Other cuntries fr mst f the survey analysis. 54 Qualificatin grupings Reprting units fr highest qualificatin gained in New Zealand have als been cmbined in the sample survey analysis fr similar reasns f small survey numbers, as well as t allw cnsistency f reprting between the surveys. Fr mst reprting in the sample survey analysis, qualificatins gained are reprted as: n pst-schl qualificatin (study may nt have resulted in a qualificatin, study may be incmplete, the student may still be studying) vcatinal (basic t advanced certificates and diplmas) bachelr s degree higher degree (pstgraduate certificate r diplma, master s degree r dctrate) Fr example, n single variable in the LisNZ data set identified whether migrants had accessed a study permit in New Zealand. 54 Fr mre infrmatin, see Appendix G 55 Fr infrmatin, see Appendix H. Mre detailed infrmatin abut the classificatin is available frm Statistics New Zealand in the LisNZ Data Dictinary (see Qualificatin cde list tab): Statistics New Zealand. N date. Lngitudinal Immigratin Survey: New Zealand Survey infrmatin. Available frm 48 Life after Study: Internatinal students' settlement experiences in New Zealand

59 Tests f statistical significance All grup cmparisns discussed in the survey data analysis have been tested fr statistical significance at the 95 percent cnfidence level. Any grup differences reprted are statistically significant unless stated therwise. Survey questins The survey questins referenced in this reprt are in Appendices E and F. Life after Study: Internatinal students' settlement experiences in New Zealand 49

60 Appendix B: Descriptin f Wrk Plicy Table B.1 Key features f the wrk plicies described in the reprt Temprary wrk grups and key features f the plicies Study t wrk The study t wrk plicies are the Graduate Jb Search and Pst-Study Practical Experience Plicies. Essential skills Facilitates the entry f peple required n a temprary basis t fill shrtages in ccupatins that are included in the Lng Term Skill Shrtage List r the Immediate Skill Shrtage List. Als includes the Apprved In Principle and Essential Skills Skill Level 1 Plicies. Family The main plicies in the family grup are the: Partnership Plicy fr partners f a New Zealand citizen r resident wh have been living with the New Zealand citizen r resident in a genuine and stable relatinship fr mre than 12 mnths Partner f a Wrker Plicy partners f thse hlding wrk permits valid fr mre than 6 mnths may be issued with a wrk permit fr the same length f time. Other plicies in this grup include the Partner f Student, Partner f NZAID Student, and Partnership Deferral Plicies. Wrking Hliday Schemes New Zealand has Wrking Hliday Schemes with 34 cuntries. The schemes allw yung peple, whse primary intentin is t hliday in New Zealand, t undertake emplyment and study during their stay. Mst schemes allw year-lds t spend a maximum f 12 mnths in New Zealand t undertake wrk f a temprary nature during their visit r t study fr up t 3 mnths. Surce: Department f Labur. 50 Life after Study: Internatinal students' settlement experiences in New Zealand

61 Appendix C: Descriptin f permanent residence categries Table C.1 Key features f the residence plicies described in the reprt Categry Skilled Migrant Categry Residence frm Wrk Categry Business Immigratin Plicy Uncapped Family Spnsred Stream Partnership Categry Dependent Child Categry Parent and Sibling/Adult Child Stream Key plicy features T apply under the Skilled Migrant Categry, applicants must meet the requirements (be aged and meet Immigratin New Zealand standards f health, character, and English language prficiency) befre they start the prcess. Applicants submit an expressin f interest in which they claim pints fr skills, experience, and ther factrs. If they have claimed 100 pints r mre n their expressin f interest, it ges int a pl. Expressins f interest are selected frm the pl based n a selectin pint and ther criteria set by the Minister f Immigratin. After initial verificatin, applicants are invited t apply thrugh the Skilled Migrant Categry. If they meet the criteria and Immigratin New Zealand believes they will settle successfully and cntribute t New Zealand, they are ffered a residence permit. The Residence frm Wrk Categry is fr peple wh are already in New Zealand n a wrk t residence permit fr at least 2 years and want t apply fr residence thrugh the relevant wrk plicy: The Talent (Accredited Emplyers) Wrk Plicy, Lng Term Skill Shrtage List Plicy, and Talent (Arts, Culture and Sprts) Wrk Plicy. The Business Immigratin Plicy aims t cntribute t New Zealand s ecnmic grwth by increasing New Zealand s levels f human and investment capital, encuraging enterprise and innvatin, and fstering internatinal links. The Uncapped Family Spnsred Categry allws New Zealand citizens and permanent residents t spnsr their clse family members fr residence. The Partnership Categry enables the partner (including the spuse, de fact, r same-sex partner) f a New Zealand citizen r resident t apply fr residence. Applicants must prvide evidence that they have been living in a partnership that is genuine and stable fr 12 mnths r mre. The Dependent Child Categry enables dependent children f parents with New Zealand residence t gain residence. The applicant must have been: brn r adpted befre his r her parents applied fr residence and have been declared n his r her parents applicatin fr residence, r brn after his r her parents applied fr residence, r adpted by his r her parents as a result f a New Zealand adptin r an verseas adptin recgnised under New Zealand law. The Parent and Sibling/Adult Child Stream allws New Zealand citizens and permanent residents t spnsr their clse family members fr residence. It currently allcates 4,950 5,500 places per year. Surce: Department f Labur. Life after Study: Internatinal students' settlement experiences in New Zealand 51

62 Appendix D: Lgistic regressin mdel estimates Table D.1 Lgistic regressin mdel estimates f the effects f individual characteristics n transitin rates Transitin pathway frm study Transitin t wrk Transitin frm wrk t residence Transitin t residence Skilled Residence Characteristic Cef. Std errr Cef. Std errr Cef. Std errr Cef. Std errr Natinality/regin Suth Krea * * * * Eurpe (incl UK) * * * Japan * * * * Nrth America * * * * Suth-east Asia * * * India * * * * All ther surce cuntries * * * * Educatin sectr Institutes f technlgy/ply technic Private training establishment English language * * * * * * * * * Schl * * Gender Female * * * * Age at first student permit apprval Aged * * * * Aged * * * * Years since first student permit 7 years (2003 chrt) * * * * years (2004 chrt) * * * * years (2005 chrt) * * * Mdel summary statistics Number f bservatins 88,452 17,968 88,452 88,452 Likelihd rati 20, , , ,047.4 R Nte: We used the recycled predictin methd t estimate and cmpare marginal effects. See Z Li and G Mahendra Using recycled predictins fr cmputing marginal effects. Paper presented at the SAS Glbal Frum Available at * The cefficient (Cef.) was statistically significant at the 95 percent cnfidence level. 52 Life after Study: Internatinal students' settlement experiences in New Zealand

63 Appendix E: Transitins Survey questins Q13 Hw imprtant were the fllwing factrs in influencing yur decisin t chse New Zealand as a place t study? Selectin: Multiple Subject ppulatin: Respndents wh stated they had previusly held a permit t study in New Zealand Questin Optins 1. Nt at all Imprtant 2. Slightly Imprtant 3. Imprtant 4. Very Imprtant 5. Extremely Imprtant 6. Nt Applicable Pssible Answers 1. Financial supprt frm yur gvernment r emplyer 2. A schlarship frm New Zealand 3. Advertisements fr study in New Zealand 4. New Zealand being an English speaking cuntry 5. Having family members r friends in New Zealand 7. The quality f New Zealand educatin 8. The internatinal recgnitin f New Zealand qualificatins (e.g. degrees, diplmas, certificates) 9. The cst f educatin in New Zealand 10. It s easy t get a student visa 12. The pprtunity t mve t anther cuntry later 13. The pprtunity t get a wrk permit after graduatin 14. The pprtunity t btain permanent residence in New Zealand at a later date 15. The pprtunity t btain New Zealand citizenship at a later date 16. It was nt pssible t study in yur hme cuntry 17. It was nt pssible t study in anther cuntry 18. Living csts in New Zealand 19. Other Q19 When yu first came t New Zealand n a temprary permit, was it yur intentin t apply fr permanent residence? Selectin: Single Subject ppulatin: All respndents Yes N Q25 When yu decided t apply fr permanent residence in New Zealand, hw imprtant were the fllwing reasns in influencing the decisin? Selectin: Multiple Subject ppulatin: All respndents Life after Study: Internatinal students' settlement experiences in New Zealand 53

64 Questin Optins 1. Nt at all Imprtant 2. Slightly Imprtant 3. Imprtant 4. Very Imprtant 5. Extremely Imprtant 6. Nt Applicable Pssible Answers 1. Jb pprtunities in New Zealand 2. Living csts in New Zealand 3. The plitical stability and lack f crruptin in New Zealand 4. Freedm f religius and plitical expressin in New Zealand 5. Educatinal pprtunities in New Zealand 7. Educatinal pprtunities fr children in New Zealand 8. The climate (e.g., weather) 9. New Zealand s clean and green envirnment 10. New Zealand s relaxed pace f life 11. New Zealand s safety frm crime and vilence 13. Gd husing in New Zealand 14. New Zealand s small ppulatin 15. The availability f services in New Zealand 16. Recreatin and leisure activities available in New Zealand 18. Jining family r relatives already living in New Zealand 19. Living in New Zealand with yur partner 20. Having friends in New Zealand 21. Parent's r partner's decisin t live in New Zealand 22. Opprtunities t bring family t New Zealand 24. Securing a place fr the family t live if desired in the future 25. Inter-racial, ethnic r religius harmny 26. Other Q 34 Other than English curses, did yu cmplete any ther curse(s) in NZ befre yu were granted permanent residence? Selectin: Single Subject ppulatin: All respndents Yes N Q36 What qualificatins, if any, have yu gained in New Zealand? Selectin: Multiple Subject ppulatin: Respndents wh answered yes t questin N frmal qualificatin 2. Secndary schl qualificatin 3. Trade r advanced trade certificate 4. Technician s certificate 5. Nursing certificate r diplma 6. Teacher's certificate f diplma 7. Technical Cllege r plytechnic certificate r diplma 8. University certificate r diplma belw bachelr level 9. Bachelr's degree 10. Pstgraduate certificate r diplma 11. Master's degree 12. PhD degree 13. Other qualificatins (Please Specify) Q37 Did yu seek these qualificatins because they wuld help yu gain permanent residence? Selectin: Single Subject ppulatin: Respndents wh had gained a qualificatin in New Zealand Yes N 54 Life after Study: Internatinal students' settlement experiences in New Zealand

65 Appendix F: Lngitudinal Immigratin Survey: New Zealand questins and derived variables D53 Since [residence apprval date], have yu dne any ther study r training in New Zealand? Selectin: Single Subject ppulatin: Respndents wh are nt at schl Yes N Dn t knw Refused D54 Was any f that study twards frmal qualificatins in New Zealand? A frmal qualificatin invlves at least 3 mnths full-time study, r the equivalent Selectin: Single Subject ppulatin: Respndents wh are nt at schl and have dne study in New Zealand Yes N Dn t knw Refused D58 Please use card D58 t tell me thrugh which rganisatins yu were ding that study. Selectin: Multiple Subject ppulatin: Respndents wh are nt at schl and have dne study in New Zealand schl plytechnic university private training establishment ther please state Dn t knw Refused D59 Please use card D59 t tell me why yu were ding that study. Selectin: Multiple Subject ppulatin: Respndents wh are nt at schl and have dne study in New Zealand t get a jb t get a better jb t get qualificatin upgraded s I can wrk in my prfessin t change career leisure activity r persnal interest t learn the English language ther please state Dn t knw Refused Life after Study: Internatinal students' settlement experiences in New Zealand 55

66 E182 Nw lking at card E182, can yu tell me if yu have experienced any f these difficulties getting wrk in New Zealand since [wave 1: RAD r first arrival, wave 2: last interview date]? Selectin: Multiple Subject ppulatin: Respndents wh have a jb r had a jb r have lked fr a jb since RAD r first arrival in New Zealand I have difficulties with English language my skills r experience are nt accepted by New Zealand emplyers I lack New Zealand wrk experience there is nt enugh suitable wrk fr smene with my skills r experience I dn t have enugh skills r experience fr the jbs that are available there are nt jbs available in the area that I live I d nt have a family r friends in New Zealand wh can help me t get a jb I have experienced discriminatin because I am a migrant I have experienced discriminatin because f my age, gender, religin ther please state n difficulties Dn t knw Refused E189 Lking at card E189, please tell me hw satisfied r dissatisfied yu are with yur main jb. Main jb is the ne the respndent spends the mst hurs in Selectin: Single Subject ppulatin: Respndents wh have a jb very satisfied satisfied neither satisfied nr dissatisfied dissatisfied very dissatisfied Dn t knw Refused E190 Please use card E190 t tell me the main reasns why yu are dissatisfied with yur main jb. I can recrd up t 3 reasns. Selectin: Multiple (up t 3) Subject ppulatin: Respndents wh have a jb, wh answer dissatisfied r very dissatisfied t E189 nt using my skills r experience this jb is nt my preferred ccupatin pay is t lw want mre hurs f wrk want t wrk different hurs but n mre hurs experiencing discriminatin frm my emplyer because I am a migrant ther please state Dn t knw Refused 56 Life after Study: Internatinal students' settlement experiences in New Zealand

67 J5 Hw many years d yu nw think yu will live in New Zealand? Include years living in New Zealand part f the time as well as full time Subject ppulatin: All respndents J10 Please use card J10 t tell me verall hw satisfied r dissatisfied yu are with living in New Zealand Selectin: Single Subject ppulatin: All respndents very satisfied satisfied neither satisfied n dissatisfied dissatisfied very dissatisfied M1 Thinking abut all the things we have talked abut, please use card M1 t tell me hw settled r unsettled yu feel in New Zealand. Selectin: Single Subject ppulatin: All respndents very settled settled neither settled nr unsettled unsettled very unsettled Derived variables English language ability English language ability is derived frm respndents self-reprted capability abut speaking, understanding, reading, and writing English. The derived classificatin is: English is a main language spken Gd English language ability Mderate r pr English language ability Nt specified Hurly earnings Hurly earnings are calculated as the respndents weekly incme reprted frm salary and wages divided by the number f wrking hurs per week. Regin f rigin Regin f rigin is derived frm the respndents cuntry f natinality r citizenship and classified int varius wrld regins specified in Appendix G. Life after Study: Internatinal students' settlement experiences in New Zealand 57

68 Labur frce status Labur frce status was derived frm respndents labur market activities at each interview date. Respndents were classified as emplyed, nt emplyed but lking fr wrk, r nt in the labur frce, as fllws: Labur frce status Paid wrk Unpaid wrk (1) Casual wrk Cmbinatin f paid wrk Cmbinatin and casual f unpaid wrk wrk Lking and fr casual wrk wrk Overseas Other activity (2) Labur frce Emplyed Emplyed Emplyed Emplyed Emplyed Lking fr wrk Nt in the labur frce Nt in the labur frce (1) Wrking withut pay in a family business r farm. (2) Neither wrking nr lking fr wrk. Main activity f thse absent frm labur market at interview date Please lk at card E176 and tell me which f these activities yu were ding during that time. Selectin: Multiple Subject ppulatin: Respndents wh are nt in the labur market in the last spell studying at hme caring fr dependants retired r at hme withut dependants ding vluntary wrk suffering ill health taking steps t set up r buy a business in New Zealand n hliday r visiting friends r relatives getting set up in New Zealand rganising husing educatin, etc trying t get qualificatins recgnised ther please state Dn t knw Refused Which f thse activities did yu spend the mst time ding during that time? Derivatin utput studying at hme caring fr dependents getting set up in NZ (rganising husing, educatin etc) ther multiple activities unspecified 58 Life after Study: Internatinal students' settlement experiences in New Zealand

69 Appendix G: Regin f rigin classificatin Reprting units fr regin f rigin have been gruped int the brader regins f ESANA (Eurpe, Suth Africa, and Nrth America), Nrth Asia (China, Japan, and Suth Krea), Suth Asia (including India), Suth-east Asia, and Other cuntries fr mst f the survey analysis. Table G.1 shws the main cuntries included in the regin grupings fr the Lngitudinal Immigratin Survey: New Zealand. 56 The Transitins Survey uses the same categrisatin, but prprtins within each regin will be slightly different. Table G.1 Categry ESANA (1) Nrth Asia Suth Asia Suth-east Asia Other (2) Tp cuntries f natinality within each categry Selected cuntries Percentage f each categry (%) Suth Africa 30.4 Great Britain 26.1 United States 9.8 Germany 7.6 All thers 26.1 China 81.7 Suth Krea 9.5 Japan 3.7 Hng Kng 2.7 All thers 2.4 India 90.7 Sri Lanka 5.6 All thers 3.7 Malaysia 34.0 Thailand 12.8 Indnesia 12.8 Philippines 10.6 All thers 29.8 Fiji 43.8 Zimbabwe 15.1 Tnga 9.6 Sama 6.8 All thers 24.7 (1) ESANA = Eurpe, Suth Africa, and Nrth America. (2) Other means the Middle East, Latin America, Africa (excluding Suth Africa), and the Pacific. 56 This includes thse wh respnded t the first 2 waves LisNZ. Life after Study: Internatinal students' settlement experiences in New Zealand 59

70 Appendix H: Qualificatin classificatin used in the survey data Table H.1 Cding fr highest qualificatin gained in New Zealand fr the Transitins Survey and Lngitudinal Immigratin Survey: New Zealand (LisNZ) Transitins Survey questin LisNZ cde (2) respnse ptin (1) Highest qualificatin derivatin N frmal qualificatin N pst-schl qualificatin Secndary schl qualificatin N pst-schl qualificatin Trade r advanced trade certificate Technician s certificate Nursing certificate r diplma Teacher's certificate f diplma Technical Cllege r plytechnic certificate r diplma University certificate r diplma belw bachelr level Vcatinal qualificatin Bachelr's degree Bachelr s degree Pstgraduate certificate r diplma Master's degree PhD degree Higher degree n/a Pst-schl undefined (1) Fr the questin text, see Appendix E. (2) Fr the questin text, see Appendix F. See the qualificatin cde list in the data dictinary fr the cde file used t derive highest qualificatin in the LisNZ survey: Statistics New Zealand. N date. Lngitudinal Immigratin Survey: New Zealand Survey infrmatin. Available frm 60 Life after Study: Internatinal students' settlement experiences in New Zealand

71 REFERENCES Department f Labur Internatinal Students: Studying and staying n in New Zealand. Wellingtn: Department f Labur. Department f Labur Migratin Trends and Outlk 2008/09. Wellingtn: Department f Labur. Available at /index.asp Educatin New Zealand Immigratin Plicy Benchmarking: Implicatins fr cmpetitiveness f New Zealand s exprt educatin sectr. Wellingtn: Educatin New Zealand. Educatin New Zealand Indian Students Lngitudinal Study: Cnslidated reprt. Wellingtn: Educatin New Zealand. Immigratin New Zealand. N date. Immigratin New Zealand Operatins Manual: Online peratins manual. Available at nual Infmetrics, NRB, and SkinnerStrategic The Ecnmic Impact f Exprt Educatin. Wellingtn: Educatin New Zealand and Ministry f Educatin. Available at Li, Z, and Mahendra, G Using recycled predictins fr cmputing marginal effects. Paper presented at the SAS Glbal Frum Available at Ministry f Educatin The Experiences f Internatinal Students in New Zealand: Reprt n the results f the natinal survey. Wellingtn: Ministry f Educatin. Ministry f Educatin Experiences f Internatinal Students in New Zealand: Reprt 2007 n the results f the natinal survey. Wellingtn: Ministry f Educatin. Ministry f Educatin Internatinal Student Enrlments in New Zealand: Wellingtn: Ministry f Educatin. Ministry f Educatin Exprt Educatin Levy Key Statistics fr Full-Years Available frm catin_levy_statistics/29650/29680/29692 Ministry f Educatin Internatinal Educatin: Latest statistics relating t internatinal educatin in New Zealand. Available at (accessed 26 February 2010). Ministry f Educatin Internatinal Student Enrlments in New Zealand: Wellingtn: Ministry f Educatin. Ministry f Educatin Key Indicatrs fr Exprt Educatin Levy fr Full- Year. Available at data/assets/excel_dc/0008/74609/key- Indicatrs-EEL xls Life after Study: Internatinal students' settlement experiences in New Zealand 61

72 OECD Educatin at a Glance: OECD indicatrs. Paris: Organisatin fr Ecnmic C-peratin and Develpment. Reserve Bank f New Zealand Histrical Series. Available at Statistics New Zealand. N date. Lngitudinal Immigratin Survey: New Zealand Wave 2, Available at gratinsurveynewzealand_hotpw208/technical%20ntes.aspx Statistics New Zealand. N date. Lngitudinal Immigratin Survey: New Zealand Survey infrmatin. Available frm Stillman, S, and Maré, D The Labur Market Adjustment f Immigrants in New Zealand. Ecnmic Impacts f Immigratin Wrking Paper Series. Wellingtn: Department f Labur. Suter, B, and Jandl, M 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

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