IMMIGRATION TRANSITION IMMIGRATION TRANSITION AND RETURN MIGRATION IN AND RETURN MIGRATION IN HONG KONGHONG KONGZhongdong Ma

Presented by Cheung Kin Man (Man), Wong Hoi Shan (Sharon)

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IntroIntroImmigration plays a crucial role in HK

economic developmentHappened alongside the political

development of China and HK (both at her colonial and handed-over periods)

A brain drain reversal, i.e. return of well educated or skilled emigrants

The paper explained theoretically how the above happened and the findings on relationship between immigration and economic development of HK

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OutlineOutlineThe Theoretical Framework: Comprehensibility

of Brain Drain Reversal5 waves of immigration in the development of

Hong KongNew Waves (plus Current Policies as of 2013)Summary of the immigration trendQ & A

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Theoretical FrameworkTheoretical FrameworkDeveloping economy

-Cheap and abundant labour-Labour-intensive industries foundation growth

Results:-Gain in International trade-Capital accumulated

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Theoretical FrameworkTheoretical FrameworkDevelopment processCapital and technical skillsDrop in demand for low skilled labourIncrease in demand for skilled labour and professionalsprocess of mobility transition

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Theoretical FrameworkTheoretical FrameworkTheory of Mobility Transition

-restructure of industries-more advanced economy-more opening opportunity

Emigrants with human capital acquired from developed countries benefited most

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Theoretical FrameworkTheoretical FrameworkExpectation

- returnees and migrants maintain their importance e.g. leadership and high professional position- the importance increase with more diversified backgrounds

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The Development of Hong KongThe Development of Hong Kong

Population size:600,000 7.1 millions

Immigration played different roles in each stage of development

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1st Wave: Pioneers of Development1st Wave: Pioneers of Development

Background- Second World War and Chinese Revolution- Fall in entrepot trade

Result:-influx of mainland entrepreneurs and workers, e.g. Shanghai- Skills and capital for labor intensive industries

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2nd Wave: Labour Migrants from Mainland2nd Wave: Labour Migrants from MainlandTighten control of immigration from

Mainland- demand for low-skilled labor drop- Cause housing problem and other social problems

Immigration restriction policy- “Touch Base” policy (抵壘政策 ) which ended in 1980- Immediate repatriation (遣返 )-daily quota

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2nd Wave: Labour Migrants from Mainland2nd Wave: Labour Migrants from Mainland

Illegal immigrants from Mainland- rural farmers with little education- mostly unmarried male- formed families in mainland

Immigration of dependents from MainlandObtain residence in Hong KongBring spouse and children

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Age-sex Structure of MigrantsAge-sex Structure of Migrants

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Marital StatusMarital Status

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3rd Wave: Dependents from Mainland3rd Wave: Dependents from MainlandFamily reunion

- mainly mainland wives and children- Priority reason

Classification of immigrants- One way permit (80%) [單程證 ]- spouse(28%), children(48%), parent(3%)- sex ratio (61% female vs. 39% male)

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Problems caused: Corruption

- only Chinese Government had authority- no transparency

Illegal immigrants- Birth of children by pregnant mothers- smuggling of mainland-born children

Right of Abode controversy in 1998

3rd Wave: Dependents from Mainland3rd Wave: Dependents from Mainland

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Improvement- Ministry of Public Security in Beijing- new computerized point system- improved transparency eg. Scores

Consequence- perceive by locals- employed in lower service with low income-rely on public financial assistance

3rd Wave: Dependents from Mainland3rd Wave: Dependents from Mainland

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1980s to early 1990s◦China reopened its door to the outside

world Small businesses in HK relocated their factories

back to their hometown, i.e. South Guangdong HK’s global and regional roles changed Foreign professionals were needed

◦More affluent households and more women to participate in the labour market Foreign domestic helpers were needed

44thth Wave: Foreign Domestic Helpers & Wave: Foreign Domestic Helpers & ProfessionalsProfessionals

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44thth Wave: Foreign Domestic Helpers & Wave: Foreign Domestic Helpers & ProfessionalsProfessionals

Foreign Domestic Helpers◦ South-east Asians mainly from the Philippines and

Indonesia◦ 47.3% in 1986 & 55.5% in 1996 ◦ 1991 to 1996: 28.3% University graduates & 46.4%

High School graduates 75% highschool or above◦ Earnings: 500 US dollars per month, i.e. around

HKD3500 to HKD4000◦ Cannot become permanent residents◦ Young female maids

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Foreign Professionals◦ From Developed Countries in search for golden income

opportunities abroad◦ In early 1990s

trade and the financial sector were booming wages in the upper level of the service sector driven by an

increasing demand for overseas professionals in large international firms

◦ Canadian, American, Australian and Japanese immigrants increased 2 to 3 times between 1986 and 1996

◦ In 2006 University graduates 72% Employed as managers and administrations (41%), Professionals

(25%) and Associate professionals (18%) Avg. monthly income of HKD45,000 with much lower tax rate than

their home countries

44thth Wave: Foreign Domestic Helpers & Wave: Foreign Domestic Helpers & ProfessionalsProfessionals

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55thth Wave: Return Migrants Wave: Return MigrantsMigration to MDC e.g. Canada, the US,

Australia and the UK in mid 1980s to mid 1990s◦Between 1984 to 1995, 530K HK residents, avg.

44K per year migrated◦Peaked in 1990-1994 due to political

uncertainty created by the handing over and post 1989 Tiananmen Incident

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55thth Wave: Return Migrants Wave: Return MigrantsBrain Drain to future Brain Gains (Skeldon, 1994)◦Migrants gained transnational capital◦ Diversified political and economic risks

Foreign passport enables emigrants to move, live and work freely between HK and a destination country.

◦ Bringing back the human capital accumulated in a MDC helps HK to enter the next stage of development.

◦ Asian Financial Crisis make HK people to realize the importance of a knowledge-based economy (e.g. the I.T. sector) Previous emigrants (brain drain) returned in response to rising

demand and job prospects Brain Drain Reversal happens!

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55thth Wave: Return Migrants Wave: Return Migrants12% emigrants have returned: return rate:

8% (1987 – 1991) to 30% (1993 – 1994); 60.5% in 1995

Majority of returnees were educated young and middle-aged adults (31 and 40% respectively)

University degree holders 58%Almost 70% were employed as managers

and administrators (25%), professionals (22%) and associate professionals (21%)

Avg. monthly income HKD26000 (in 1990s!)

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55thth Wave: Return Migrants Wave: Return MigrantsIn 2000s, Increasing volume and growing

importance of returnees in high professions◦62K (23.7% of total) in 2001 to 100K persons

(32% of total) in 2006◦Decline of expatriates from 21.7K (8.3%) to

14.7K (4.8%) from 2001 to 2006◦HK born returnees became more important in

almost every category, outperforming the local in sr. mgmt. and admin. (37% vs. 25%)

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55thth Wave: Return Migrants Wave: Return Migrants◦ Adding the shares of two types of returnees, the findings

suggested that returnees play an important role in small business (61%) university teaching (56%) high management (54%) business (49%) health (45%) IT Computer (44%) planning and engineering (42%).

◦ Returnees help the transition and expansion of HK’s tertiary education, IT and business development

◦HK born returnees have their edge in combing best of tools: transnational human capita and local social capital as comparing to expatriates

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New waves: Import Professionals New waves: Import Professionals PolicyPolicy

Pressure for more professionals to fill the market shortage in the face of global economic restructuring

In 1994, Pilot import scheme of Mainland professionals and skilled personnel◦ Graduates from 36 key universities◦ Skills and experience relevant to the jobs◦ Not allowed to bring families to HK◦ Eligible to apply for permanent residence in HK after 7 years

of continuous residenceLater◦ Professionals can bring their wife and children to HK◦ No quota for the importation scheme as long as academic

and experience requirements fulfilled◦ Alleviate the shortage of professionals and mitigate the

ageing population by allowing family members to stay33

New waves: Current HKSAR PolicyNew waves: Current HKSAR PolicyIn 2006◦Dependent visa holders can take up

employment w/o the need to obtain independent visa if his/her sponsor has been admitted into HK for employment or as capital investment entrant.

◦QMA (Quality Migrant Admission Scheme) launched with a max. at 1000 per annum General Points Test or the Achievement-based Poin

ts Test

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New waves: HKSAR PolicyNew waves: HKSAR Policy

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SummarySummaryHK’s development – immigration plays an important role

Applying the theoretical framework to the immigration waves of HK

Theoretical Framework of Mobility Transition

5 Waves of Immigration of HK36

SummarySummaryReturnees created a brain drain reversal by bringing

their transnational human capital and local social capital in high professions in various sectors.◦ helps facilitate HK’s transition and expansion of tertiary

education, technology development, global and regional business

New Challenge: Migrants from the mainland◦ Striking balance between the increasing pressure of

admitting the family members of past immigrants and the increasing demand for skilled workers and professionals from the mainland

Future direction: attract, train, and retain talents from the region and the developed economies to work in HK

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Q & AQ & AHK’s population policy public consultation◦http://

www.hkpopulation.gov.hk/public_engagement/en/doc.html

Other questions are also welcomedThank you!

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