INTEGRATION OF IMMIGRANTS PROGRAMME 2007 – 2012 Immigrant Business and Labour Market Outcomes: Relational Embeddedness in Superdiverse Auckland Paul Spoonley.

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INTEGRATION OF IMMIGRANTS PROGRAMME 2007 – 2012 Immigrant Business and Labour Market Outcomes: Relational Embeddedness in Superdiverse Auckland Paul Spoonley Integration of Immigrants Programme, Massey University “Economic Impacts of Immigration and Population Diversity” University of Waikato April 2012

Integration of Immigrants Programme 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) CensusSurveys LisNZ dataCase studies

NZ Exceptionalism? s Immigrant homogeneity 1960s Pasifika migration 1990s Immigrant diversity Auckland superdiversity (40% overseas born) Biculturalism

A Neo-Liberal Context: Paradoxes Liberalising 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 ( )

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 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 structures Relational 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/operators 16% Indian owners/operators 14% Pakeha Food 73% Chinese (90% Asian) 2% Pakeha 28 Chinese shops in a row

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

INTEGRATION OF IMMIGRANTS PROGRAMME 2007 – 2012