Template-Type: ReDIF-Paper 1.0
Author-Name: Arthur Grimes
Author-X-Name-First: Arthur	
Author-X-Name-Last: Grimes
Author-Email: arthur.grimes@motu.org.nz
Author-Workplace-Name: Motu Economic and Public Policy Research 
Author-Name: Shaan Badenhorst
Author-X-Name-First: Shaan	
Author-X-Name-Last: Badenhorst
Author-Email: shaan.badenhorst@motu.org.nz
Author-Workplace-Name: Motu Economic and Public Policy Research
Author-Name: David C. Maré
Author-X-Name-First: David C.	
Author-X-Name-Last: Maré
Author-Email: dave.mare@motu.org.nz
Author-Workplace-Name: Motu Economic and Public Policy Research
Author-Name: Jacques Poot
Author-X-Name-First: Jacques 
Author-X-Name-Last: Poot
Author-Email: jpoot@waikato.ac.nz
Author-Workplace-Name: Vrije Universiteit Amsterdam, and University of Waikato
Author-Name Isabelle Sin
Author-X-Name-First: Isabelle 
Author-X-Name-Last: Sin
Author-Email: isabelle.sin@motu.org.nz
Author-Workplace-Name: Motu Economic and Public Policy Research
Title: Hometown wh?nau or big city millennials? The economic geography of graduate destination choices in New Zealand.
Abstract:  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 wellbeing in such regions. We use rich longitudinal microdata from New Zealand’s integrated administrative data infrastructure to analyse the determinants and geography of the choice of destination of tertiary educated (university and polytechnic) graduates. We address the question of post-student location choice in the context of the approach of Chen and Rosenthal (2008) who introduced a methodology for calculating ‘quality of life’ and ‘quality of business’ indicators for urban areas reflecting consumption and productive amenities respectively. Specifically, we test whether students – of different characteristics (e.g. institutional type and field of study) – locate in places that are regarded as good to live or good to do business. 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 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. Places can leverage their existing (productive or consumption amenity) strengths to act as drawcards to recent graduates. The results are important for local decision-makers who wish to know which factors can attract and retain young qualified people.
Length: 55 pages
Creation-Date: 2020-04
File-URL: https://motu-www.motu.org.nz/wpapers/20_04.pdf
Number: 20_04
Classification-JEL: I23, J24, J61, R23, R58, Z13
Keywords: Innovation; Immigration; Local labour market
Handle: RePEc:mtu:wpaper:20_04