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Go West, Young Man, Go West!? - WP 01/07

Publication Details

  • "Go West, Young Man, Go West!"?
  • Published: Dec 2001
  • Status: Current
  • Authors: Bushnell, Peter; Choy, Wai Kin
  • JEL Classification: A3; F22
  • Hard copy: Available in PDF format only.
 

Go West, Young Man, Go West!?

New Zealand Treasury Working Paper 01/07

Published Dec 2001

Authors: Peter Bushnell and Wai Kin Choy

Abstract

Will economic integration lead to skilled citizens being drawn to the larger, richer economic partner? In 1983, Australia and New Zealand signed the Closer Economic Relations Agreement to ensure free trade in goods and services. Was this a modern equivalent of Horace Greeley's famous advice "Go West, young man, go West"? The evidence presented in this paper suggests that Greeley was right; many have indeed gone westward. However, a common labour market has not led to a brain drain. Paradoxically, the effect has been to increase the numbers of lower-skilled migrants from New Zealand and those with higher skills who are older or are not within the approved occupational groupings. The Trans-Tasman picture is further complicated by migration to New Zealand from third countries sufficient to offset the outflow of New Zealand citizens. The imbalance in net migration from New Zealand toward Australia has led to policy tensions. These are discussed briefly.

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