Staying or leaving New Zealand after you graduate? – reflecting on brain drain and brain circulation issues facing graduates

Abstract

Brain drain and brain circulation are forms of skilled labour migration which have a significant impact on New Zealand’s economic growth. Based on their importance, it is suggested that economies rethink how they compete for skilled labour in an international labour market.

This research study reviews economic and non-economic factors that influence an individual’s decisions to stay or leave New Zealand. Data is collected from a survey sample of Lincoln University final year undergraduate and postgraduate students, who represent New Zealand’s future skilled labour. The research study employs a data reduction technique called factor analysis to collate large sets of variables into small sets for econometric analysis. The key econometric tool, logit analysis, provides probabilities of graduates leaving New Zealand and marginal effects of changes in key economic and non-economic variables. These key findings, providing new knowledge, are used to engage in a policy discussion in the last chapter. The research study importantly maintains focus on three key stakeholders, the government, the business community and the individual/student when addressing and analysing New Zealand’s brain drain and brain circulation issues.