INTEGRATIONOF IMMIGRANTSPROGRAMME

2007 – 2012

Immigrant Business and Labour Market Outcomes: Relational Embeddedness in

Superdiverse AucklandPaul Spoonley

Integration of Immigrants Programme, Massey University

“Economic Impacts of Immigration and Population Diversity” University of Waikato

11-13 April 2012

Integration of Immigrants Programme 2007-2012

Objective 2 (Paul Spoonley)• What are the experiences of immigrant families and households in relation

to labour market participation and business activity?• What strategies do they adopt in relation to paid/unpaid work,

entrepreneurship, saving behaviour, investment?• How significant/important are ethnic sub-economies/networks/precincts

or transnational linkages?• What is the nature/size of ethnic economic networks/enclaves and what

are the spill-over effects?(Team: P. Spoonley, R. Bedford, E. Ho, R. Peace, T. Cain)

• 2001-2006 Census • Surveys

• LisNZ data • Case studies

NZ Exceptionalism?

• 1840-1960s Immigrant homogeneity• 1960s Pasifika migration• 1990s Immigrant diversity• Auckland superdiversity (40% overseas born)• Biculturalism

A Neo-Liberal Context: ParadoxesLiberalising immigration – 1986/87

– Internationalising the NZ economy– Privatisation/individual responsibility– Limited post-arrival support– Entrepreneurship/small business development focus

1990s: Poor Labour Market Outcomes

Poor alignment between immigrant selection and labour market participation

Professional registration

Spikiness in flows• External factors (Hong Kong, Asian

economic downturn)• Political/moral panic (1993-1996)

Neo-Liberal Influences on Immigration Policy

• State-recruitment of skilled labour• Focus on responsible/entrepreneurial selves• Local government reluctance to recognise

racial barriers/ethnic dynamics

Exception?Recognition of group rights/indigeneity

of Maori/contest neo-liberalism

Mixed Embeddedness/Relational Embeddedness

Mixed Embeddedness (Kloosterman & Rath)• Embeddedness in ethnic/immigrant networks• Regulatory and opportunity structuresRelational Embeddedness (Portes)• Familiar networks/cultural familiarity• Reduces transaction costs• Privileged access• Neo-liberal public management

Chinese Immigrants in Auckland

• Temporary (students) migrants → permanent• Barriers

– Lack of local experience– English language competence– Employer attitudes

• Relational embeddedness– Mandarin usage (to communicate with employees)– Reliance on co-ethnic suppliers– Predominance of co-ethnic labour (+ self-exploitation)– Small world networks

Korean Immigrants in Auckland

Barriers– Exactly the same as Chinese job seekers– Non-responsiveness of local business

organisations– Significant post-arrival

occupational downward mobility

Indian Immigrants in Auckland

• English language competence• Labour market barriers• Downward occupational

mobility• Evidence of relational embeddedness• High (employee) satisfaction with current jobs

South African Immigrants in Auckland

• Pre-migration self-employment• Pre-migration job offers• Limited downward occupational mobility• Local experience still an issue• Less reliance on co-ethnic (economic vs social

relational embeddedness

British Immigrants in Auckland

• Relative financial prosperity• Family migration (much higher levels of complete

families migrating)• Strong focus on relaxed lifestyle and environment• Little displacement/downward mobility/upward

mobility• Broad networks

Relational Embeddedness in Action: Dominion Road Ethnic Precinct

Balmoral Road (92 shops)51% Chinese owners/operators16% Indian owners/operators14% Pakeha

Food73% Chinese (90% Asian)2% Pakeha

28 Chinese shops in a

row

Dominion Road

Dominion Road: BusinessType

Ethnic Precincts• Access point to employment and

business establishment• Co-ethnic networks in operation (capital,

suppliers, employees, customers)

Meeting, shopping and eating….

Market Sovereignty and Entrepreneurial Selves

• Spectrum of outcomes: British ↔ Chinese/Korean• Small world networks/strength of relational

embeddedness• Immigrant limitations (local experience, limited

networks)

plus

labour market barriers/employer attitudes

INTEGRATIONOF IMMIGRANTSPROGRAMME

2007 – 2012