The Contrasting Importance of Quality of Life and Quality of Business for Domestic and International Migrants

Grimes, Arthur; Preston, Kate; Maré, David C.; Badenhorst, Shaan; Donovan, Stuart

doi:10.2139/ssrn.3477058

Cited by 2 publications

(2 citation statements)

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“…Our results for graduates can be contrasted with those of Grimes et al ( 2021 ) who examined location choices of adults aged 25–54 years within New Zealand. New Zealand residents of this age-group are primarily drawn to places with high quality of life, while recent migrants to New Zealand are attracted to places with high quality of business.…”

Section: Discussioncontrasting

confidence: 99%

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Quality of life, quality of business, and destinations of recent graduates: fields of study matter

Grimes

Badenhorst²,

Maré

et al. 2022

Ann Reg Sci

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One of the main challenges facing non-metropolitan regions is the attraction and retention of highly-educated young people. A loss of the brightest can lead to reduced business creation, innovation, growth and community well-being in such regions. We use rich longitudinal microdata from New Zealand to analyse the determinants and geography of the choice of destination of recent university and polytechnic graduates 2 years and 4 years after graduation. Rather than considering a range of location-specific consumption and production amenities, we assume spatial equilibrium and calculate, following Chen and Rosenthal (J Urban Econ 64:519–537, 2008), ‘quality of life’ and ‘quality of business’ indicators for urban areas that encompass all amenities that are utility and/or productivity enhancing (or reducing, in the case of disamenities). Specifically, we test whether students locate in places that are regarded as good to live or good to do business; and how this differs by field of study. Our estimates are conditional on students’ prior school (home) location and the location of their higher education institution. We find that graduates are attracted to locate in urban places that have high quality production amenities. High quality consumption amenities have heterogeneous effects on the location choice of students. Creative arts and commerce graduates are relatively more likely to locate in places that are attractive to business, consistent with a symbiosis between bohemians and business. Decision makers can leverage their existing local strengths, in terms of production and/or consumption amenities, to act as drawcards for, or to retain, recent graduates in specific fields.

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Section: Discussioncontrasting

confidence: 99%

“…Based on Preston et al ( 2018 ), Grimes et al ( 2021 ) calculated wage and rent premia in 130 New Zealand urban areas using data from eight population censuses since 1976. Following Chen and Rosenthal ( 2008 ), these premia were converted into a QL value and QB value for each urban area and year.…”

Section: Introductionmentioning

confidence: 99%