Skip to main content

The Changing Composition and Fortunes of Overseas Graduates in Australia: The Case of Chinese and Indian Graduates

  • Chapter
  • First Online:
Population Change and Impacts in Asia and the Pacific

Part of the book series: New Frontiers in Regional Science: Asian Perspectives ((NFRSASIPER,volume 30))

  • 595 Accesses

Abstract

Responding to labour and skills shortages, Australia has developed a comprehensive immigration framework to attract and retain overseas graduates. While prior work has explored the post-graduation settlement patterns and work outcomes of overseas graduates, much less is known about the role of their country of origin on their labour market performances in the context of socio-economic and immigration policy changes. Drawing on the Australian Graduate Survey, this chapter explores the composition and labour market outcomes of overseas graduates who remained in Australia after graduation with a particular focus on the two largest source countries: China and India. Findings show that Chinese and Indian graduates are very highly educated, but they fare poorly in the labour market as compared with the locals, pointing to skill under-utilisation among overseas graduates. Nonetheless, their work and salary outcomes have improved over time, which may be attributed to the relaxation of post-graduation migration and employment pathways in Australia. While Chinese graduates struggle more in securing full-time employment, they are less susceptible to education-job mismatch relative to their Indian counterparts. The Chinese nationals may be working part-time for relevant work experience that may help them to enhance their career prospects. These results are of importance to public policy in their capacity to highlight the issue of skill under-utilisation and the labour market integration patterns of overseas graduates as the socio-economic and immigration policy conditions shift over time.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 149.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 199.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 199.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • ABS (2010) Australian Social Trends, March 2010, cat. no. 4102.0. Australian Bureau of Statistics, Canberra

    Google Scholar 

  • ABS (2013) ANZSCO—Australian and New Zealand Standard Classification of Occupations, 2013, Version 1.2, cat. no. 1220.0. Australian Bureau of Statistics, Canberra

    Google Scholar 

  • ABS (2015) Labour force, Australia, cat. no. 6202.0. Australian Bureau of Statistics, Canberra

    Google Scholar 

  • Anlezark A (2011) Young people in an economic downturn, Briefing paper no. 23. National Centre for Vocational Education Research, Adelaide

    Google Scholar 

  • Arkoudis S, Hawthorne L, Baik C, Hawthorne G, O’Loughlin K, Leach D, Bexley E (2009) The impact of English language proficiency and workplace readiness on the employment outcomes of tertiary international students. Department of Education, Employment and Workplace Relations, Canberra

    Google Scholar 

  • Beets G, Willekens F (2009) Theglobal economic crisis and international migration: an uncertain outlook. Research note to European Commission Demography Network of the European Observatory on the Social Situation and Demography. Netherlands Interdisciplinary Demographic Institute, The Hague

    Google Scholar 

  • Birrell B, Healy E (2013) Implications of the Chaney Report for the Labour Market Outcomes for International Students, Centre for Population and Urban Research. The University of Melbourne, Melbourne

    Google Scholar 

  • Birrell B, Healy E, Betts K, Smith F (2011) Immigration and the resources boom mark 2. Centre for Population and Urban Research, The University of Melbourne, Melbourne

    Google Scholar 

  • Bond S, Areepattamannil S, Brathwaite-Sturgeon G, Hayle E, Malekan M (2007) Northern Lights: International Graduates of Canadian Institutions and the National Workforce. Canadian Bureau for International Education, Ottawa

    Google Scholar 

  • Booth A, Leigh A, Varganova E (2010) Does racial and ethnic discrimination vary across minority groups? Evidence from a field experiment, discussion paper no. 4947. Institute for the Study of Labor, Bonn

    Google Scholar 

  • Borland J (2012) Slow road to jobs growth: the true picture of unemployment in Australia. The Conversation, 31 January, viewed 25 November 2015. http://theconversation.com/slow-road-to-jobs-growth-the-true-picture-of-unemployment-in-australia-5077

  • Brekke I (2007) Ethnic background and the transition from education to work among university graduates. J Ethn Migr Stud 33(8):1299–1321

    Article  Google Scholar 

  • Chiswick BR, Miller PW (1992) Language in the labor market: The immigrant experience in Canada and the United States’. In: Chiswick BR (ed) Immigration, language and ethnic issues: Canada and the United States. American Enterprise Institute, Washington, DC, pp 229–296

    Google Scholar 

  • Chiswick BR, Miller PW (1995) The endogeneity between language and earnings: International analyses. J Labor Econ 13(2):246–288

    Article  Google Scholar 

  • Chiswick BR, Miller PW (2004) Linguistic distance: a quantitative measure of the distance between English and other languages, discussion paper no. 1246. Institute of the Study of Labor, Bonn

    Google Scholar 

  • Clyne M (1991) Community languages: the Australian experience. Cambridge University Press, Cambridge

    Book  Google Scholar 

  • Constant A, Gataullina L, Zimmermann KF (2006) Gender, ethnic identity and work. Discussion paper no. 2420. Institute of the Study of Labor, Bonn

    Google Scholar 

  • Corcoran J, Rowe F, Faggian A, Stimson R (2017) The impacts of policy change on overseas human capital in Australia: the implementation of the 485 graduate visa scheme’. In: Lombard J, Clarke G, Stern E (eds) Applied spatial modelling and planning. Routledge, Oxon

    Google Scholar 

  • Department of Education and Training (DET) (2014) International Student Data 2014, Department of Education and Training, viewed 29 April 2015.https://internationaleducation.gov.au/research/International-Student-Data/Pages/InternationalStudentData2014.aspx

  • Evans MDR (1986) Sources of immigrants’ language proficiency. Australian results with comparisons to the Federal Republic of Germany and the United States of America. Eur Soc Rev 2(3):226–236

    Article  Google Scholar 

  • Faggian A, Corcoran J, Rowe F (2016) Evaluating the effects of Australian policy changes on human capital: the role of a graduate visa scheme. Environ Plann C 34(1):151–170

    Article  Google Scholar 

  • Foundation for Young Australians (2015) How young people are faring in the transition from school to work. Foundation for Young Australians, Melbourne

    Google Scholar 

  • Gribble C (2014) Employment, work placements & work integrated learning of International Students in Australia, Research Digest 2. International Education Association of Australia, Melbourne

    Google Scholar 

  • Guthrie B (2008) Graduate destination 2007. Graduate Careers Australia, Melbourne

    Google Scholar 

  • Hawthorne L (2010) How valuable is “Two-step Migration”? Labor market outcomes for international student migrants to Australia. Asian Pac Migr J 19(1):5–36

    Article  Google Scholar 

  • Hawthorne L (2013) Indian students and the evolution of the study-migration pathway in Australia. Int Migr 52(2):3–19

    Article  Google Scholar 

  • Hawthorne L, To A (2014) Australian employer response to the study-migration pathway: the quantitative evidence 2007-2011. Int Migr 52(3):99–115

    Article  Google Scholar 

  • International Organisation for Migration (IOM) (2008) Managing labour mobility in the evolving global economy. International Organisation for Migration, Geneva

    Book  Google Scholar 

  • Ioannides YM, Loury LD (2004) Job information networks, neighborhood effects, and inequality. J Econ Lit 42(4):1056–1093

    Article  Google Scholar 

  • James K, Otsuka S (2009) Racial biases in recruitment by accounting firms: the case of International Chinese applicants in Australia. Crit Perspect Account 20(4):469–491

    Article  Google Scholar 

  • Knott M (2014) Work and pay prospects for graduates deteriorated in 2014, a survey shows, The Sydney Morning Herald, 30 December, viewed 11 June 2015. http://www.smh.com.au/federal-politics/political-news/work-and-pay-prospects-for-graduates-deteriorated-in-2014-a-survey-shows-20141230-12fl2u

  • Kollar E, Buyx A (2013) Ethics and policy of medical brain drain: a review. Swiss Med Wkly 143:w13845. https://doi.org/10.4414/smw.2013.13845

    Article  Google Scholar 

  • Li IW, Miller PW (2013) Overeducation in the Australian graduate labor market: the roles of immigrant status and language background’. In: Jelinek P (ed) Education in Australia: cultural influences, global perspectives and social challenges. Nova Science, New York

    Google Scholar 

  • Lofters A, Slater M, Fumakia N, Thulien N (2014) “Brain drain” and “Brain waste”: experiences of international medical graduates in Ontario. Risk Manag Healthc Policy 7:81–89

    Article  Google Scholar 

  • MacDonald J, MacDonald L (1964) Chain migration, ethnic neighborhood formation and social networks. Millbank Mem Fund Q 42(1):82–97

    Article  Google Scholar 

  • Mares P (2013) We know about 457. What about 485?, Inside Story, viewed 15 June 2015. http://insidestory.org.au/we\know\about\the\457\what\about\the\485

  • Mason PL (2004) Annual income, hourly wages and identity among Mexican-Americans and other Latinos. Indus Relat 43(4):817–834

    Article  Google Scholar 

  • OECD (2009) International migration outlook 2009. Organisation for Economic Co-operation and Development, Paris

    Google Scholar 

  • OECD (2010) International migration outlook 2010. Organisation for Economic Co-operation and Development, Paris

    Book  Google Scholar 

  • OECD (2014a) International graduates: an underutilised labour source in Norway. In: Recruiting immigrant workers: Norway 2014. OECD, Paris

    Google Scholar 

  • OECD (2014b) Labour market integration of immigrants and their children: developing, activating and using skills. In: International migration outlook 2014. OECD, Paris

    Chapter  Google Scholar 

  • OECD (2014c) Education at a glance 2014: OECD indicators. Organisation for Economic Co-operation and Development, Paris

    Book  Google Scholar 

  • Oreopoulos P (2011) Why do skilled immigrants struggle in the labor market? A field experiment with thirteen thousand resumes. Am Econ J Econ Policy 3(4):148–171

    Article  Google Scholar 

  • Peykov P (2004) Immigrant skilled workers: should Canada attract more foreign students? SIPP Public Policy Paper no. 27. Saskatchewan Institute of Public Policy, University of Regina

    Google Scholar 

  • Phillips J, Spinks H (2012) Skilled migration: temporary and permanent flows to Australia. Department of Parliamentary Services, Canberra

    Google Scholar 

  • Portes A, Sensenbrenner J (1993) Embeddedness and immigration: notes on the social determinants of economic action. Am J Sociol 98(6):1320–1350

    Article  Google Scholar 

  • Quintini G, Broecke S (2014) The roles of skills in early labour market outcomes and beyond. In: Keese M (ed) OECD employment outlook 2014. Organisation for Economic Co-operation and Development, Geneva

    Google Scholar 

  • Rowe F, Corcoran J, Bell M (2015) Changing post-school pathways and outcomes: Melbourne and regional students. Report 6 prepared for the Department of Planning and Community Development, Queensland Centre for Population Research, The University of Queensland, Brisbane

    Google Scholar 

  • Rowe F, Corcoran J, Bell M (2017) The returns to migration and human capital accumulation pathways: non-metropolitan youth in the school-to-work transition. Ann Reg Sci 59(3):819–845

    Article  Google Scholar 

  • Scott ML, Whelan A, Dewdney J, Zwi AB (2004) “Brain drain” or ethical recruitment? Solving health workforce shortages with professionals from developing countries’. Med J Aust 180(4):174–176

    Article  Google Scholar 

  • Simmons A (1999) International migration and designer immigrants: Canadian policy in the 1990. In: Castro M (ed) Free markets, open societies, closed borders? Trends in International Migration and Immigration Policy in the Americas. North-South Center Press, Miami

    Google Scholar 

  • Suter B, Jandl M (2008) Train and retrain: national and regional policies to promote the settlement of foreign graduates in knowledge economies. Int Migr Integr 9(4):401–418

    Article  Google Scholar 

  • Tang AZR, Corcoran J, Rowe F (2017) The role of migration on education-job mismatch: evidence from international graduates in Australia. In: Corcoran J, Faggian A (eds) Graduate migration and regional development: an International perspective. Edward Elgar, Cheltenham

    Google Scholar 

  • The Smith Family (2014) Young people’s successful transition to work: what are the pre-conditions? The Smith Family, Sydney

    Google Scholar 

  • Trevelyan JP, Tilli S (2010) Labour force outcomes for engineering graduates in Australia. Aust J Eng Educ 16(2):101–122

    Google Scholar 

  • Wolbers M (2003) Job mismatches and their labour market effects among school-leavers in Europe. Eur Soc Rev 19:249–266

    Article  Google Scholar 

  • Ziguras C, Law S (2006) Recruiting international students as skilled migrants: the global “skills race” as viewed from Australia and Malaysia. Global Soc Educ 4(1):59–76

    Google Scholar 

  • Zimmermann L, Zimmermann KF, Constant A (2007) Ethnic self-identification of first-generation immigrants. Int Migr Rev 41(3):769–781

    Article  Google Scholar 

Download references

Acknowledgements

We acknowledge Graduate Careers Australia for their co-operation and the supply of the data on which this chapter is based. Graduate Careers Australia cannot accept responsibility for any inferences or conclusions derived from the data by third parties.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Angelina Zhi Rou Tang .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Singapore Pte Ltd.

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Tang, A.Z.R., Rowe, F., Corcoran, J., Faggian, A. (2020). The Changing Composition and Fortunes of Overseas Graduates in Australia: The Case of Chinese and Indian Graduates. In: Poot, J., Roskruge, M. (eds) Population Change and Impacts in Asia and the Pacific. New Frontiers in Regional Science: Asian Perspectives, vol 30. Springer, Singapore. https://doi.org/10.1007/978-981-10-0230-4_9

Download citation

Publish with us

Policies and ethics