Abstract
This report examines how labour market outcomes and returns to human capital vary in the overseas-born and New Zealand-born populations in New Zealand and whether these returns vary over time and across business cycles. Overall, the results found there was little variation in differences in employment and wage rates between overseas-born and New Zealand-born individuals between 1997 and 2009, meaning the business cycle did not have differential impacts on labour market outcomes for these groups. After controlling for differences in characteristics such as education attainment, work experience and years in New Zealand, overseas-born individuals were found to have slightly lower employment rates and lower wages than New Zealand-born individuals. Labour market outcomes also differed across ethnic groups. New Zealand-born Maori, Pasifika and Asians have similar employment rates to New Zealand-born Pakeha but lower wage rates, while overseas-born Pasifika, Asians and Other had both lower employment and wage rates.