The effect of first language and education on literacy, employment and income: An analysis from the Adult Literacy and Life Skills survey

3. Previous research

This section reviews previous research on English language proficiency, employment and income. This research has largely focused on migrant settlement and considered English language proficiency or background as one of the explanatory variables in relation to employment and income. 

There are three types of research that have been conducted. The first type is statistical analysis, mostly using New Zealand census data (Zodgekar, 1998; Winkelmann and Winkelmann, 1998; Boyd, 2003; New Zealand Immigration Service, 2003; Nana and Sanderson, 2008). These have been more recently supplemented by the Longitudinal Immigration Survey (Statistics New Zealand, 2008 and 2009) and a study using the New Zealand Income Survey (Stillman and Maré, 2009). The second type is surveys of immigrants and their employers (New Zealand Immigration Service, 2003; Statistics New Zealand, 2008 and 2009; Department of Labour, 2009). And the third is qualitative research (Henderson, Trlin and Watts, 2006; Butcher, Spoonley and Trlin, 2006; North, 2007).

3.1: Employment

The following conclusions can be drawn from the statistical analyses.

• When they first arrived, migrants from English-speaking backgrounds had lower labour force participation and employment rates than people born in New Zealand.
• Labour force participation and employment rates for migrants from English-speaking backgrounds converged with those of people born in New Zealand after about 10 to 15 years of residence.
• Migrants from non-English-speaking backgrounds, particularly those from Asia and the Pacific, had much lower rates of labour force participation and employment than migrants from English-speaking backgrounds.
• Most studies found that labour-force participation and employment rates for migrants from non-English-speaking backgrounds did not increase to the same level as those of other migrants or people born in New Zealand, even after 10 to 15 years. Nana and Sanderson (2008) and Stillman and Maré (2009) concluded that rates improved for migrants from Asia, but not from the Pacific.
• Zodgekar (1998) noted that Asian-born males were less likely than other migrants to obtain occupations that reflected their qualifications.
• Boyd (2003) also noted that labour force participation and employment rates remained lower for tertiary qualified migrants from Asia and the Pacific, but not for tertiary qualified migrants from other regions.
• New Zealand Immigration Service (2003) also noted that unemployment rates were higher for migrants from Asia and the Pacific.
  

The survey and qualitative research projects all concluded that having low levels of English language proficiency was a significant barrier to employment. Not having New Zealand qualifications and New Zealand work experience were also identified as major barriers in the studies.

Henderson, Trlin and Watts (2006) noted that some employers of professional migrants had very high expectations of English language proficiency when recruiting for senior positions. In some cases they expected the employee to achieve a New Zealand accent, which is unrealistic. They also noted that employers very rarely used selection tools specifically designed to test English language proficiency and usually relied on informal assessment through interviews. Employers in their survey saw English language issues affecting situations involving client and customer contact, written communications and work-related communications.

3.2: Income

The following conclusions can be drawn from the statistical analyses.

• When they first arrived, migrants from English-speaking backgrounds had the same or somewhat lower incomes than people who were born in New Zealand and had the same level of qualifications.
• Where an income gap was found for migrants from English-speaking backgrounds, it appeared to diminish over time. Winkelmann and Winkelmann (1998) suggested this to be 20 to 30 years. New Zealand Immigration Service (2003) suggested this period to be 10 years. Stillman and Maré (2009) and Nana and Sanderson (2008) suggested it to be more than 15 years.
• The variation in the findings about the income gap for migrants from English-speaking backgrounds probably reflects the different economic conditions at the time of the data collection and experiences of different immigration cohorts.
• Migrants from non-English-speaking backgrounds had substantially lower incomes than other migrants when they first arrived.
• Most studies found that the incomes of migrants from non-English-speaking backgrounds do not appear to converge over time with the incomes of other migrants or those born in New Zealand. Nana and Sanderson (2008) and Stillman and Maré (2009) concluded that incomes improved for migrants from Asia, but not from the Pacific.
• Winkelmann and Winklemann (1998) also noted that the income gap was more marked for migrants from non-English speaking backgrounds who arrived in New Zealand as adults. This is supported by Stillman and Maré (2009) and Nana and Sanderson (2008).