Valuation, diversity and cultural mis‐match: immigration in New Zealand

Abstract

Purpose

This paper aims to examine the economic effect of immigration, in particular, government's ability to select human capital that benefits the economy.

Design/methodology/approach

The effects of recent migration to New Zealand are examined, drawing on government statistics. Outcomes are contrasted with policy intentions, and the effect of diversity is considered before examining the economic effect on Auckland city.

Findings

The government's assessment of human capital does not reflect market assessment. Reasons include systemic abuse, government valuation of qualifications that are not transferable, and insufficient value placed on language, culture, nor time required for adaptation. The best performing immigrants are those with similar cultures to the dominant NZ ethnic group.

Research limitations/implications

More research is needed to quantify impacts, however migration can also be linked to some barriers to growth including congestion costs and diversion of investment to low growth areas.

Practical implications

Government policies need to recognise culture is not neutral and the economic benefits of diversity may vary in time and region.

Social implications

Failure to recognise culture results in unemployment and under‐employment while migrants endure un‐met expectations. Migrants not assessed for human capital also exhibit cultural mis‐match, and is in danger of creating an emerging underclass.

Originality/value

There is a need to distinguish between economic leading immigrants and economic followers. Migrants from different cultures can lead economic growth by developing export markets but the market for such migrants can get saturated. The effects of migration change over time and each situation requires its own analysis.

Citation

Clydesdale, G. (2011), "Valuation, diversity and cultural mis‐match: immigration in New Zealand", Journal of Asia Business Studies, Vol. 5 No. 1, pp. 98-118. https://doi.org/10.1108/15587891111100822