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Expats costing NZ $14k each

Date 
Wednesday, 25 August 2010 (All day)

New Zealand's best and brightest expatriates are costing the country $14,000 apiece through foregone tax and costs of government services such as education, according to World Bank research.

As the OECD leader in so-called 'brain drain', where highly-skilled people emigrate, New Zealand was included in a World Bank policy group's investigation into tertiary-educated migrants from small nations.

Though expats put a strain on their home nation by leaving, the incentives for them to do so are great, with highly-skilled Kiwi migrants earning an average US$116,000, compared to US$65,600 if they stayed.

Returning expats can also look to a brighter future, with a mean salary of $75,100, while they bring back an average US$53,700 in savings with them.

Even accounting for higher costs of living abroad, New Zealanders were better off by US$21,000 overseas than they were at home, the study found.

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Source: www.nzherald.co.nz