Dr Carolina Baos Mallol

Brain Gain? The impact of 457-visa highly-skilled migration as capital to Australia, insights from Western Australia

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Details

  • Author: Carolina Baos Mallol
  • Contributors: Lauren O'Mahony (Supervisor), Kathryn Trees (Supervisor)
  • Awarding Institution: Murdoch University
  • Date: 2023

Abstract

In 1996, the Australian government created its first temporary skilled visa programme to attract highly-skilled migrants and address skilled labour shortages in Australia. The 457-visa programme attracted a new wave of (highly) skilled migrants, increasing and reshaping Australia's human capital landscape. International immigrants bring knowledge and social capital that stimulates economic growth (OECD 2007; Solow 1999). Thus, (im)migrants impact the origin and host countries by sharing their knowledge; in this case knowledge that is part of human and social capital. The correlation between highly- skilled (im)migrants' capitals and their key impact on Australia has been partially overlooked in Australia's migration literature. There is a gap in the analysis of Australia's migration history from the skills perspective of highly-skilled (im)migrants. This thesis helps address the gap in the role of 457-visa highly-skilled migrants as capital to Australia.

This study analyses the impact, particularly the key causes and consequences, of 457-visa highly-skilled migration as capital to Australia. Capital is explored through the human and social capital of highly-skilled migration. This study draws upon economic sociology, the sociology of migration and knowledge management to explore the impact of 457-visa highly- skilled migration as capital to Australia, with a focus on 457-visas. The study contributes to these fields in three ways. Firstly, this study examines Australia's highly-skilled migration through the key causes and consequences from 1788 to 2018, including investigating skilled and highly-skilled (im)migrants' pre- and post-migration human and social capital. Secondly, a survey of highly-skilled migrants on 457-visas in the Western Australian oil and gas sector provides microdata that explores the value of highly-skilled migrants' human and social capital to the Australian labour market. Last, the application of Portes's Economic Sociology conceptual framework widens the current knowledge of the sociology of migration by enriching the understanding of highly-skilled migration as human and social capital.

This research challenges the perception that Australia's migration was unskilled before the 20th century and emphasises that (highly) skilled (im)migrants are conveyors of capital, especially in the form of knowledge. Finally, through the application of Portes's conceptual framework, I aim to broaden the knowledge of highly-skilled migration as capital. The findings from this study can be relevant for future Australian highly-skilled migration policies.

FAQ

What is the historical context of skilled migration to Australia?

Australia has a long history of skilled migration, dating back to the early settlers who arrived in the 18th and 19th centuries. During this time, the government actively recruited skilled workers from the UK and other European countries to help build the new colony. The gold rushes of the 19th century also attracted a wave of skilled migrants, many of whom were miners, engineers, and other tradespeople.

In the 20th century, Australia continued to encourage skilled migration, with a particular focus on attracting workers in high-demand industries. The 457 visa program, introduced in 1996, was a key part of this effort.

How has the 457 visa program impacted Australia?

The 457 visa program, later replaced by the Temporary Skill Shortage (TSS) visa, has significantly impacted Australia's economy and society. It allowed businesses to sponsor skilled migrants for temporary work in occupations facing labor shortages. While it facilitated the entry of highly-skilled workers contributing to economic growth, particularly in sectors like mining, it also raised concerns about potential displacement of local workers and exploitation of migrant workers.

What are the key motivations for highly-skilled individuals to migrate to Australia?

Highly-skilled individuals choose to migrate to Australia for various reasons, often driven by a combination of factors known as "push" and "pull" factors.

  • Push factors are circumstances in their home countries that encourage them to seek opportunities elsewhere, such as lack of suitable employment, unfavorable economic conditions, social or political instability, or seeking better living standards for themselves and their families.
  • Pull factors are attractive aspects of Australia that draw them in, including a strong economy with abundant job opportunities in their field, higher salaries and better career prospects, a desirable lifestyle with a pleasant climate and good infrastructure, the opportunity to apply for permanent residency, and existing social connections with family or friends already residing in Australia.

How important is social capital for highly-skilled migrants in Australia?

Social capital plays a crucial role in the successful settlement and career progression of highly-skilled migrants in Australia.

  • Social connections, both within their professional networks and within their broader communities, can provide valuable support, guidance, and access to opportunities that might not be readily available otherwise.
  • Building strong social ties can help migrants navigate the challenges of adapting to a new culture, finding employment, and building a fulfilling life in Australia.
  • The more integrated migrants become within Australian society, the more they can contribute their skills and knowledge, leading to greater economic and social benefits for both themselves and their host country.

What is the relationship between human capital, social capital, and knowledge sharing?

Human capital, representing an individual's skills and knowledge, is enhanced through knowledge sharing. Social capital, encompassing the value derived from social connections and networks, facilitates this knowledge sharing process.

  • When individuals with diverse backgrounds and experiences connect and collaborate, they create opportunities to exchange ideas, best practices, and insights, leading to innovation and economic growth.
  • Highly-skilled migrants, bringing their unique knowledge and expertise from their home countries, can make significant contributions to knowledge sharing in their workplaces and communities in Australia.

What are the potential benefits of knowledge sharing from highly-skilled migrants?

Knowledge sharing by highly-skilled migrants offers numerous potential benefits for the Australian economy:

  • Innovation and Productivity: It can lead to the development of new ideas, technologies, and business practices, enhancing innovation and productivity across industries.
  • Economic Growth: By improving efficiency and competitiveness, knowledge sharing contributes to overall economic growth and prosperity.
  • Skills Transfer: It facilitates the transfer of specialized skills and knowledge from experienced professionals to local workers, addressing skill shortages and strengthening the workforce.

Are there challenges or barriers to knowledge sharing by highly-skilled migrants?

Despite the potential benefits, knowledge sharing by highly-skilled migrants can face challenges:

  • Cultural Differences: Different communication styles, cultural norms, and language barriers can sometimes hinder effective knowledge transfer.
  • Workplace Dynamics: Workplace cultures that do not encourage collaboration, knowledge sharing, or value diverse perspectives can limit the impact of migrant knowledge.
  • Recognition of Foreign Qualifications: Difficulties in getting overseas qualifications and experience recognized in Australia can limit employment opportunities and hinder knowledge sharing.

How can knowledge sharing be encouraged and facilitated among highly-skilled migrants and Australians?

Promoting inclusive workplace cultures that value diversity and encourage open communication can create an environment where knowledge sharing can thrive. Providing mentorship programs, networking opportunities, and professional development initiatives that connect highly-skilled migrants with local professionals can facilitate knowledge transfer and enhance social capital. Additionally, streamlining the process for recognizing foreign qualifications can enable highly-skilled migrants to fully utilize their expertise and contribute to knowledge sharing in their respective fields.