Migrants and Labour Market Outcomes
SOURCE OF MIGRANT INCOME
The source of income question was not asked in the 1981 census, so data from 1996, 2001 and 2006 only are available for scrutiny here. Measures of potential interest are listed in Table 6.1.
Table 6.1 Outcome measures for income sources investigated
Income source and the birthplace dimension
At the total population level, it is clear that migrant groups record different outcomes - in terms of sources of income - to those of the New Zealand born.
In 1996, 76.4% of those born in New Zealand reported receiving wage and salary income. This figure fell slightly in 2001 to 75.6%, but surged in 2006 to 78.1%. The comparable figures for the migrant population were 67.8% in 1996, 64.8% in 2001 and 70.1% in 2006. Also, there are noticeable differences between the migrant groups according to their place of birth. For example, the lowest proportion for 2006 was the 62.9% calculated for the Asian born group, with the highest being the 80.0% of Australian born migrants receiving wage and salary income. Figure 6.1 depicts these comparisons.
Figure 6.1 Proportion of population group reporting income from wages and salaries
The differences between the New Zealand born and overseas born populations and also within the migrant groups by birthplace extends to proportions receiving unemployment benefit income and to figures reporting no source of income.
For example, 6.7% of the New Zealand born population reported receiving some unemployment benefit income in 2001, compared to 5.3% of those born overseas. However, this divergence has narrowed considerably during the period to 2006. The 2006 figures were 3.0% for the New Zealand born and 3.2% for migrants. This is likely, in part, due to the buoyant labour market and immigration policy focusing on employment.
Within the migrant group, the proportion for 2006 ranged from 1.13% for the United Kingdom and Ireland born population to 5.3% for the Pacific Islands born group. All of these proportions have declined from their 1996 levels, although the relativities across the groups remain broadly similar.
Within the New Zealand born population, 4.6% reported having no source of income in 2006, compared to 9.2% of those born overseas. Within the migrant group, this proportion ranged from 3.4% for the United Kingdom and Ireland born population to 17.5% for the Asian born group. The result for the Asian group is likely due to the large proportion of full fee-paying international students. We further note that all of these proportions have increased slightly from their 1996 and 2001 levels. Again, though, the relativities across the groups remain broadly similar.
Income source and the years in New Zealand dimension
As before, we explore the years in New Zealand dimension for these income source responses.
We observe that the proportions of the recent migrant population groups receiving wage and salary income show greater differences than for the all migrant groupings. In particular, as depicted in Figure 6.2, only recent migrants born in Australia and the United Kingdom and Ireland have comparable (or better) proportions than the figure for the New Zealand born group. This finding is broadly consistent with the income measures for recent migrants discussed earlier.
Figure 6.2 Proportion of recent migrants receiving wage and salary income
The differences in this figure appear not to be explained through the receipt of unemployment benefit income. Proportions of recent migrants in 2006 receiving income from this source lie in a relatively narrow range - from 0.5% for those born in the United Kingdom and Ireland to 4.7% for the Other region birthplace group.
From Figure 6.3, it would appear the explanation lies in the proportions with no source of income. Clearly, the proportion of both Pacific Islands and Asian born recent migrants with no source of income is notably larger than for the New Zealand born group. Again, the result for the Asian group is largely driven by the proportion of full fee-paying international students. The Other region birthplace recent migrant group also records a higher proportion here. This characteristic suggests the age dimension for these groups may be worthy of investigation. This is pursued in the following sub-section.
Figure 6.3 Proportion of recent migrant groups with no source of income
Looking at the data for the earlier migrant group and their sources of income sees a narrowing of the gap between the New Zealand born and migrant proportions. For example, 73.2% of the earlier migrant group in 2006 report income from wages and salaries compared to 78.1% for the New Zealand born group. Within the earlier migrant group, the lowest proportion is the 64.2% for those born in the Pacific Islands. Other groups, though, are notably closer to, or higher than, the New Zealand born figure. Figures are 73.5% for the Europe and North American born, and 73.9%, 77.3% and 80.4% for United Kingdom and Ireland, Asian and Australian groups respectively.
Notably, the proportions with no source of income in 2006 for all of the earlier migrant groupings are, with one exception, below the New Zealand born figure of 4.6%. The exception is the 4.8% recorded for those born in Asia.
Similarly close to the comparable New Zealand born figure are the proportions with income from unemployment benefit in 2006. These proportions range from the 1.5% for the United Kingdom and Ireland born earlier migrant group to the 5.0% for the Pacific Islands earlier migrant group, with the New Zealand born group proportion being 3.0%.
Income source and the age dimension
6.3.1 All migrants aged 25-54 years old
Adjusting for age in our investigation of labour market outcomes, we note the income sources of the population groups aged 25-54 years old. As before, this age group provides interest in that it is likely to possess similar characteristics and, a priori, similar labour market outcomes across the various population groupings.
For this age group, 86.7% of the New Zealand born population in 2006 had income from salary and wages, 2.7% reported no source of income and 2.8% received some unemployment benefit income. Only the unemployment benefit figure has changed noticeably since 1996, with the 1996 figures being 84.6%, 3.2% and 8.0% respectively.
Figure 6.4 Proportion of 25-54 year old migrants with wage and salary income
Amongst migrants aged 25-54 years old, the proportion receiving wage and salary income was 81.7% in 2006 - having risen from the 78.9% recorded in 1996. Differentiating across the migrant groups according to birthplace, the 2006 picture finds a lower proportion receiving wage and salary income amongst the Asian, Pacific Islands born and Other region 25-54 year old migrants. Conversely, the Australian, Europe and North America, and United Kingdom and Ireland born groups register wage and salary income proportions higher than the comparable New Zealand born figure.
There appear relatively small differences in proportions in the 25-54 year old age group receiving unemployment benefit income in 2006. The proportion for the New Zealand born group is 2.8%, with the highest proportion being 4.5% for those born in the Pacific Islands and the lowest being 1.2% for those born in the United Kingdom and Ireland.
Figure 6.5 Proportion of 25-54 year old migrants with no source of income
The predominant difference in proportions with no source of income in 2006 in this 25-54 year old age group is for those born in Asia. This proportion is 11.1%, compared to only 2.7% for the New Zealand born group, with the next highest proportion being 6.7% for those born in the Pacific Islands. As before, and given the context of migration patterns and the potential composition of student populations within the Asian migration, we add the years in New Zealand characteristic to the above age dimension investigation.
6.3.2 Recent migrants aged 25-54 years old
Amongst recent migrants aged 25-54 years old, 79.7% reported wage and salary income compared to the 85.7% reported by the earlier migrant group. The comparison for recent migrants depicted in Figure 6.6 shows large differences for those born in Asia and the Pacific Islands - with the proportion reporting wage and salary income in 2006 being close to 70%.
However, within the earlier migrant group, the difference in proportions with wage and salary income is narrower - with those born in Asia close to 85% and the Pacific Islands born group registering 75%.
Figure 6.6. Proportion of recent migrants aged 25-54 with wage and salary income
In 2006, 11% of recent migrants aged 25-54 reported no source of income compared to just under 3% for the New Zealand born 25-54 year old population. Amongst recent migrants aged 25-54, those born in Asia and the Pacific Islands report noticeably higher proportions with no source of income, as in Figure 6.7.
Again, though, as the length of residence increases, the differences in these indicators narrows. In particular, amongst earlier migrants aged 25-54 in 2006, only 3.6% report no source of income, with the highest proportion being 4.8% for those born in Asia.
Figure 6.7 Proportion of recent migrants aged 25-54 with no source of income
Source of income summary
According to these measures of sources of income, the observations suggest migrant labour market outcomes are different from those of the New Zealand born. In general, the Asian and Pacific Islands born groups show lower proportions receiving wage and salary income and higher proportions reporting no source of income. Other migrant groups by birthplace report proportions similar to those for the New Zealand born.
After adjusting for age and years of residence characteristics of labour market participants, the outcomes for the Asian born group move closer to those for the New Zealand born population, as their length of residence in New Zealand increases. This leaves the conclusion that the labour market outcomes investigated by these income source measures are noticeably different for those born in the Pacific Islands, compared to the New Zealand born population.