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This study extends the literature on the role of institutional quality in international migration to an under-researched aspect: the intention of international migrants to return to the home country. We examined whether the perception of differences in institutional quality between OECD destination countries and Vietnam and the stated importance attached to such differences influence the intention of Vietnamese migrants to return home. We used data from a web-based survey (N= 159) conducted in 2016. The countries where the respondents resided comprised approximately 90% of the Vietnamese diaspora in the world. We considered six different dimensions of institutional quality. We found, both descriptively and by means of weighted logistic regression analysis, that Vietnamese migrants who perceive a greater difference in institutional quality between the destination country and Vietnam are less likely to report intentions to return. This effect is stronger for those who attach greater importance to institutional quality. However, gender shows notable heterogeneity, with the effects of institutional quality being more robust and closer to the theoretical expectations for men than for women.

The proportion of New Zealand households living in owner-occupied dwellings has declined steadily since the early 1990s. The unemployment rate declined steadily as well, except for upward shifts due to the late 1990s Asian Financial Crisis and the Global Financial Crisis a decade later. Research initiated by Andrew Oswald in the 1990s posits that declining homeownership and declining unemployment are linked and that the causality runs from high homeownership leading to high unemployment. The international empirical evidence for this hypothesis is rather mixed. In this paper, we revisit the issue with New Zealand census data for commuting-defined labour market areas from 1986 until 2013. Allowing for spatial spillovers in our data, we apply a general nesting spatial-econometric model. We also consider the potentially different impacts of freehold and mortgaged homeownership. Generally, the evidence that a declining homeownership rate contributes to a lower unemployment rate is statistically fragile. When statistically significant, an increase of 1% in freehold ownership appears to increase a labour market area’s unemployment rate by between 0.07 and 0.2% points. The effect is relatively stronger in those labour market areas where freehold ownership is still relatively low.

Recent papers have found that often immigrants are overqualified relative to native-born workers when comparing an individual’s education to the ‘average’ education in their occupation. We show that these results are sensitive to differences in the education distribution between immigrants and the native born. Using data for New Zealand, which has an immigration policy that favours skilled immigrants, we find that this approach leads one to conclude that immigrants are, on average, overqualified for their occupation. However, once we account for the fact that immigrants are on average more skilled than natives, we find that immigrants are, in fact, less overeducated than natives. JEL classification:F22, J21, J61

An important question for firms and policy makers is whether the recruitment of foreign workers can boost innovation. Migration studies have demonstrated positive economic impacts of cultural diversity on productivity and innovation at the regional level, but the impacts at firm level are less well known. Merging data from four different sources, provided by Statistics Netherlands, we construct and analyze a unique linked employer-employee micro dataset of 4582 firms that includes qualitative information on firm innovation. We consider both the number of immigrants these firms employ and their cultural diversity. Potential endogeneity of migrant employment is addressed by an instrumental variables approach that accounts for the past geographic distribution of immigrants and the past culinary diversity of the municipality the firm is located in. We find robust evidence that firms employing relatively more migrants are less innovative. However, there is evidence of integration in that this effect is generally less strong or even absent for second generation immigrants. Moreover, firms employing a more diverse foreign workforce are more innovative, particularly in terms of product innovations. The benefits of diversity for innovation are more apparent in sectors employing relatively more skilled immigrants. D22, F22, O31

The growth of cities has attracted considerable scholarly attention during the last decade as it is becoming clear that powerful agglomeration forces are reinforcing the role of cities as the engines of economic growth. Close to 4 billion people live in cities, about 55 per cent of the world's population. While population growth rates are declining and the world's population is likely to level off from the middle of the 21st century, probably ending up around 10 billion, further urbanization is expected to continue. Another 3 billion people will become urban citizens this century. At the same time no corner of the world will be sheltered from sweeping demographic changes due to population ageing and increasing migration. Such changes will be amplified in cities. In this paper we combine UN population projections and migration data with our own assumptions to derive projections of age composition and birthplace composition of urban populations by continent. We also briefly address the consequences of these demographic trends for future urban economic vitality. Particular attention is paid to the impacts of demographic changes on urban creativity and innovation. We conclude that, with the right policies in place, such demographic changes enhance rather than impede the future prosperity of the urban world.

This paper focuses on migration between Australia and New Zealand, which has exhibited a strong, but cyclical, net movement towards Australia since the late 1960s. A long-term historical perspective is taken. Trans-Tasman migration is also compared with inter-island migration within New Zealand. It is argued that differential economic development, driven by forces of globalization, agglomeration and technological change, has been primarily responsible for the long-run changes in the distribution of population across the regions of Australasia. Asynchronous business cycles, demographic dynamics, perceptions, return migration and the high international mobility of New Zealanders (of whom one quarter of those aged 40–64 have lived abroad for a year or longer) are responsible for the short-run fluctuations. However, permanent and long-term migration is only a small fraction of total trans-Tasman population movement. Moreover, trans-Tasman migration has not offset New Zealand's ability to recruit population through immigration. Over the last three decades, the outflow of more than half a million New Zealand citizens has been compensated by a net inflow of three-quarter million citizens from elsewhere. The number of New Zealanders in Australia is expected to continue to grow but the migration flows are becoming increasingly diversified. One-third of the New Zealanders in Australia re-migrates within four years. Future trends will depend on New Zealand's ability to boost productivity growth, the real cost of air travel, retirement migration and the impacts of climate change.

Population growth in New Zealand is rather volatile. International migration is the main cause of this. However, as is common in many countries, official population projections are based on a range of exogenously-set fixed levels of net migration. This article argues that, for the short to medium term, such projections can be improved upon by adopting econometric methodologies which take explicitly into account the demographic-economic two-way interaction in certain components of international migration. Specifically, the article summarizes research on the causes and consequences of trans-Tasman migration, which is the dominant component of the volatility in New Zealand's net migration. It is shown how these findings can aid population forecasting.

Incomes Policy in New Zealand, by Jonathan Boston. (Wellington: Victoria University Press for the Institute of Policy Studies, 1984). Pp.ix+344. $19.50 paperback.Labour and Employment Research in New Zealand, edited by Peter Brosnan and Philip S. Morrison (Wellington: Industrial Relations Centre and Geography Department, Victoria University 1984). Pp. iv+ 183. $20.Inflation and Unemployment: Theory, Experience and Policy-Making, edited by Victor E. Argy and John W. Nevile. (London: George Allen and Unwin, 1985). Pp.390. $95.Privatisation and the Welfare State, edited by Julian Le Grand and Ray Robinson. (London: Allen and Unwin 1984) Pp.xiv + 233. $NZ24.95.

A letter to the editor is presented in response to the article "Gaponomics" which appeared in the March 12, 2011 issue.