How pro-poor is the selection of seasonal migrant workers from Tonga under New Zealand's recognized seasonal employer program ?

Temporary migration programs for unskilled workers are increasingly being proposed as a way to both relieve labor shortages in developed countries and aid development in sending countries without entailing many of the costs associated with permanent migration. New Zealand's new Recognized Seasonal Employer program is designed to enable unskilled workers from the Pacific Islands to work in horticulture and viticulture in New Zealand for a period of up to seven months. However, the development impact on a sending country will depend not only on how many workers participate, but also on who participates. This paper uses new survey data from Tonga to examine the process of selecting workers for the Recognized Seasonal Employer program, and to analyze how pro-poor the recruitment process has been to date. The findings show that recruited workers come from largely agricultural backgrounds, and have lower average incomes and schooling levels than Tongans not participating in the program. Comparing thecharacteristics of program workers with those of Tongans applying to permanently migrate to New Zealand through the Pacific Access Category, the program workers are more rural and less educated. The program therefore seems to have succeeded in creating new opportunities for relatively poor and unskilled Tongans to work in New Zealand.Access to Finance,Labor Markets,Work&Working Conditions,,Tertiary Education

Economic Issues in the Fisheries Sector of Tonga

There are certain characteristics of island economies that are considered hindrances to their development. For example, island economies often lack the economies of scale necessary for enhanced economic development and are too remotely located from the worlds major international financial and trading centres to fully exploit the marketing and trading opportunities that are available. However, for island economies in the South Pacific, the sea also offers great opportunities for sustained economic development. The relative abundance and accessibility of fisheries resources means that if these resources are properly managed and exploited, island economies have much potential for social and economic development. At the same time, the sea provides a significant means of basic livelihood for many rural communities in these Island countries. A major and enduring challenge is therefore to ensure that island economies in the South Pacific utilise their sea resources for social and economic development without jeopardising their communities basic livelihoods

Natural Experiment Evidence on the Effect of Migration on Blood Pressure and Hypertension

Over 200 million people live outside their country of birth and experience large gains in material well-being by moving to where wages are higher. But the effect of this migration on health is less clear and existing evidence is ambiguous because of the potential for self-selection bias. In this paper, we use a natural experiment, comparing successful and unsuccessful applicants to a migration lottery to experimentally estimate the impact of migration on measured blood pressure and hypertension. Hypertension is a leading global health problem, as well as being an important health measure that responds quickly to migration. We use various econometric estimators to form bounds on the treatment effects since there appears to be selective non-compliance in the natural experiment. Even with these bounds the results suggest significant and persistent increases in blood pressure and hypertension, which have implications for future health budgets given the recent worldwide increases in immigration.blood pressure, hypertension, lottery, migration, natural experiment

How Pro-Poor is the Selection of Seasonal Migrant Workers from Tonga Under New Zealand's Recognised Seasonal Employer (RSE) Program?

Temporary migration programs for unskilled workers are increasingly being proposed as a way to both relieve labour shortages in developed countries and aid development in sending countries without entailing many of the costs associated with permanent migration. New Zealand's new Recognised Seasonal Employer (RSE) program is designed with both these goals in mind, enabling unskilled workers from the Pacific Islands to work in horticulture and viticulture in New Zealand for a period of up to seven months. However, the development impact on a sending country will depend not only on how many workers participate, but also on who participates. This paper uses new survey data from Tonga to examine the process of selecting Tongans to work in the RSE, and to analyze how pro-poor the recruitment process has been to date. We find that the workers recruited come from largely agricultural backgrounds, and have lower average incomes and schooling levels than Tongans not participating in the program. We also compare the characteristics of RSE workers to those of Tongans applying to permanently migrate to New Zealand through the Pacific Access Category, and find the RSE workers to be more rural and less educated. The RSE therefore does seem to have succeeded in creating new opportunities for relatively poor and unskilled Tongans to work in New Zealand.

How cost elastic are remittances? Estimates from Tongan migrants in New Zealand

Pacific Island economies are some of the most remittance- dependent in the world. Proposals to lower the costs of sending money across borders are a core recommendation of recent international studies that aim to enhance the development impact of remittances. The potential increase in remittances that recipient countries can expect from such policies depends critically on the sensitivity of remittance transfers to the costs of remitting. This paper provides the first estimates of the cost-elasticity of remittances, using data from a survey of Tongan migrants in New Zealand. The costs of remitting to Tonga are high by international standards and remittances are found to have a negative cost-elasticity with respect to the fixed fee component of money transfer costs. These findings suggest that Pacific Island countries can expect a more than proportionate increase in remittances from a reduction in costs

Natural Experiment Evidence on the Effect of Migration on Blood Pressure and Hypertension

Over 200 million people live outside their country of birth and experience large gains in material well-being by moving to where wages are higher. But the effect of this migration on health is less clear and existing evidence is ambiguous because of the potential for selfselection bias. In this paper, we use a natural experiment, comparing successful and unsuccessful applicants to a migration lottery to experimentally estimate the impact of migration on measured blood pressure and hypertension. Hypertension is a leading global health problem, as well as being an important health measure that responds quickly to migration. We use various econometric estimators to form bounds on the treatment effects since there appears to be selective non-compliance in the natural experiment. Even with these bounds the results suggest significant and persistent increases in blood pressure and hypertension, which have implications for future health budgets given the recent worldwide increases in immigration.Blood pressure, Hypertension, Lottery, Migration, Natural experiment

Natural Experiment Evidence on Whether Selection Bias Overstates the Gains from Migration

Migration of workers from developing to developed countries and the resulting remittance flows are important development policies. World Bank calculations show that restrictions on international migration have larger welfare costs than the more widely studied restrictions on international trade. But estimated gains from migration may be affected by selection bias, with differences in outcomes for migrants and non-migrants reflecting unobserved differences in ability, skills, and motivation, rather than the act of moving itself. This poster illustrates this selection bias in commonly used statistical corrections for nonrandom selection. A unique survey conducted by the authors of Tongan migrants in New Zealand, and of non-migrants in Tonga is used. New Zealand allows a quota of Tongans to immigrate each year with a lottery used to choose amongst the excess number of applicants. Experimental estimates of the income gains from migration are obtained by comparing the incomes of migrants who were successful in the lottery to the incomes of the unsuccessful applicants who stayed in Tonga. We also conducted a survey of individuals who did not apply to migrate. Comparing this non-applicant group to the migrants allows us to use non-experimental methods to obtain alternate estimates of the gains from migration. Comparison of the two sets of estimates finds that non-experiment methods overstate the income gains to migration by 11 to 82 percent. Thus, assessments of global gains from increased international migration are likely to be sensitive to the modelling of selectivity bias.Migration, Selection, Natural Experiment, Labor and Human Capital, 015, J61, F22, C93,

How pro-poor is the selection of seasonal migrant workers from Tonga under New Zealand’s Recognised Seasonal Employer (RSE) Program?

Temporary migration programs for unskilled workers are increasingly being proposed as a way to both relieve labour shortages in developed countries and aid development in sending countries without entailing many of the costs associated with permanent migration. New Zealand’s new Recognised Seasonal Employer (RSE) program is designed with both these goals in mind, enabling unskilled workers from the Pacific Islands to work in horticulture and viticulture in New Zealand for a period of up to seven months. However, the development impact on a sending country will depend not only on how many workers participate, but also on who participates. This paper uses new survey data from Tonga to examine the process of selecting Tongans to work in the RSE, and to analyze how pro-poor the recruitment process has been to date. We find that the workers recruited come from largely agricultural backgrounds and have lower average incomes and schooling levels than Tongans not participating in the program. We also compare the characteristics of RSE workers to those of Tongans applying to permanently migrate to New Zealand through the Pacific Access Category, and find the RSE workers to be more rural and less educated. The RSE therefore does seem to have succeeded in creating new opportunities for relatively poor and unskilled Tongans to work in New Zealand

Efficient remittance services for development in the Pacific

Capital inflows to the Pacific islands from aid, foreign investment and remittances are an important source of development finance. Remittances are the fastest growing; they now total US$400 million per year and can be expected to grow even further as labour mobility is used to deal with seasonal labour shortages in Australia and New Zealand and limited job opportunities in the Pacific. The transaction costs of sending remittances to the Pacific islands are very high for the most widely used methods. This paper examines the New Zealand- Tonga remittance corridor, where typical transactions involve costs in the order of 15 to 20 per cent for bank drafts and transfers through money transfer companies such as Western Union. Cheaper transfer methods using automated teller machines (ATMs) are feasible and have transaction costs of less than 5 per cent but are not widely used. This spread of 10 percentage points between the most popular and the cheapest remittance methods means a potential loss for Tonga of the equivalent of 4 per cent of GDP. Extrapolating from this remittance corridor to the rest of the Pacific, avoidable transaction costs may total US$ 40 million per year. Hypotheses about the continued reliance on high transaction cost methods are examined and implications for development policy are discussed

How do Pacific island households and communities cope with seasonally absent members?

Households and communities in the Pacific islands are increasingly likely to have some of their most productive members regularly absent due to growing opportunities for seasonal work abroad. If these absences are costly for the family left behind, the net development benefits of seasonal migration will be less than what they appear from remittances and repatriated foreign earnings, and there might be a role for government policies in host and source countries to mitigate some of the effects of absence. This article provides the first evidence of how Pacific island households and communities are affected by and cope with seasonal absences. We find that Tongan households have succeeded in mitigating many of the potential adverse effects associated with seasonal separation of members, whereas households from Vanuatu with members participating in the RSE appear to have suffered some shortterm costs in terms of diet and health