Latent Human Capital and the Effects of Tied Migration and Spousal Employment in the Manawatu-Wanganui Region, An Exploratory Study Among Ohakea Partners

Latent Human Capital and the Effects of Tied
Migration and Spousal Employment in the
Manawatu-Wanganui Region: An Exploratory
Study Among Ohakea Partners
Submitted in partial fulfilment of the requirements for a
Masters of Business Administration degree at Massey
University, New Zealand
Phillip James Bedford
2014

Latent Human Capital Bedford 00325538
ii

iii
Abstract
The aim of this research is to develop a better understanding of human capital
utilisation in areas where tied migration is prevalent. The basis of the study is the
concept that a labour resource-based approach to regional economic
development is possible should tied migration result in latent human capital
through the underemployment of trailing partners following relocation. The study
explored the concept of latent human capital with the partners of Ohakea-based
personnel as an indicative sample population within the greater Manawatu-
Wanganui region.
Five research questions were posed and answered in sequential order. First,
what is the total high-level human capital resource held within the pool of the
partners of Ohakea-based personnel. Second, what is the high-level human
capital resource held within the Manawatu-Wanganui based pool of partners of
Ohakea-based personnel. Third, what is the effect of tied migration on the
Manawatu-Wanganui region human capital resource. Fourth, is there a difference
in the human capital resource of resident Manawatu-Wanganui region partners
and tied migrant partners. Fifth, does latent human capital exist in the Manawatu-
Wanganui region.
A two-step approach was taken in order to answer the research questions. Firstly,
each survey respondent’s total and employed levels of human capital were
measured. Secondly, the two levels were compared.
The findings of this study demonstrate that latent human capital was prevalent
within the overall research sample population, including both Manawatu-
Wanganui based and non Manawatu-Wanganui based survey respondents. The
results indicated that some half of the research population’s average total human
capital was employed. When the Manawatu-Wanganui resident sub-groups were
considered independently, on average 51.0% of the total human capital was
employed. Of the tied migrant sub-group (those who moved to or back to the
Manawatu-Wanganui region to be collocated with their partner) 41.0% were fully

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employed. This is in marked contrast to the sub-group of those respondents who
had met their Ohakea-based partner while living in the Manawatu-Wanganui
region. These respondents reported an employment level in excess of 70%
(72.5%).
This study concludes that significant levels of latent human capital exist in the
Manawatu-Wanganui region as a result of underdevelopment; underemployment;
unemployment; and, a lack of suitably flexible employment models. The effect is
exacerbated by tied migration resulting in one third less employment among tied
migrants.

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Acknowledgements
I am truly grateful and indebted to my wife Tracy and daughters Emma and Holly
for their unwavering and tireless commitment to my pursuit of the Masters of
Business Administration (MBA). Their support and understanding was
outstanding and they have personally given up so much during the completion of
the two-year executive degree. Tracy has solely carried the burden of running
our household and Emma and Holly graciously gave up their precious time with
Dad.
I would like to take this opportunity to thank and acknowledge the Massey
University MBA and academic staff for their support and assistance throughout
the programme. In particular I wish to thank my supervisor, James Lockhart, for
his timely, thoughtful and academically challenging advice during the
development of this dissertation. Furthermore, I would like to acknowledge my
colleagues from the NZ5 MBA cohort for their support, assistance and friendship
throughout the 25 month programme.

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Statement of Academic Integrity
I declare that this research report is entirely my own work. When the ideas,
quotations, data and diagrams of others have been used in the report, the work
has been properly cited in the text.
Signature Date
The researcher holds the rank of Wing Commander and position of Commanding
Officer Base Headquarters at the Ohakea Military Airbase. Accordingly, this study
required review against the full ethics assessment process to ensure the risk of
position power influencing any individual’s right to voluntarily participate, or not,
in the study was appropriately managed. A number of logical provisions were
developed to mitigate the risk and these have been implemented. The project
was approved by the Massey University Human Ethics Committee: Southern B
under application 13/97 on 25 February 2014.
Coupled with the Massey University ethics requirements, the New Zealand
Defence Force (NZDF) also prescribes strict protocols to govern personnel
research. Although research into the partners of Defence personnel is not
explicitly covered within the protocols, for transparency reasons approval to
conduct the research was sought from the Assistant Chief of Defence Force
(Personnel). Approval was granted on 09 December 2013 under OSWOH 5000
dated 09 November 2013.

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Table of Contents
Abstract............................................................................................................................iii
Acknowledgements.........................................................................................................v
Table of Contents..........................................................................................................vii
List of Figures ..................................................................................................................x
List of Tables.................................................................................................................xiii
Chapter 1: Introduction and Background ................................................................... 1
1.1 Introduction........................................................................................................... 1
1.2 Purpose of the Study .......................................................................................... 2
1.3 Background .......................................................................................................... 5
1.4 Outline of the Study............................................................................................. 7
Chapter 2: Literature Review .....................................................................................10
2.1 Introduction and Glossary ................................................................................10
2.2 Related Studies of Tied Migration...................................................................12
2.2.1. Military Related Studies ...........................................................................12
2.2.2 Medical Profession Related Studies .......................................................20
2.2.3 Expatriate Related Studies .......................................................................22
2.3 Regional Economic Development Theory.....................................................23
2.4 Manawatu-Wanganui Region Regional Development Strategy ................25
2.5 Limitations to Extant Research .......................................................................28
2.6 Analysis of Literature ........................................................................................29
Chapter 3: Research Design......................................................................................35
3.1 Introduction.........................................................................................................35
3.2 Research Method ..............................................................................................35
3.3 Data Collection...................................................................................................37
3.3.1 Sampling......................................................................................................38
3.4 Measurement .....................................................................................................38
3.5 Data Analysis .....................................................................................................39
3.5.1 Statistical Analysis .....................................................................................40
3.5.2 One Sample t Test.....................................................................................42
3.5.3 Standard Error of the Mean Analysis......................................................43
3.5.4 Regression Analysis ..................................................................................43
3.6 Ethical and Cultural Considerations ...............................................................44

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3.7 Survey Design....................................................................................................45
Chapter 4: Results and Analysis ...............................................................................47
4.1 Introduction.........................................................................................................47
4.2 Survey Response Output Summary...............................................................47
4.3 Survey Response Data Analysis.....................................................................73
4.3.1. Participant Analysis ..................................................................................74
4.4 Data Validity.......................................................................................................75
4.4.1 Survey Response Rate .............................................................................76
4.4.2 t Test Results..............................................................................................76
4.4.3 Standard Error of the Mean Analysis Results .......................................78
4.4.4 Regression Analysis Results....................................................................79
4.5 Demographic Analysis by Human Capital.....................................................81
4.6 Employment Situation Analysis.......................................................................84
4.7 Human Capital Utilisation Analysis.................................................................87
4.8 Didn’t Relocate Demographic Analysis..........................................................89
4.9 Summary.............................................................................................................90
Chapter 5: Discussion .................................................................................................91
5.1 Introduction.........................................................................................................91
5.2 Ohakea Partners’ Human Capital...................................................................92
5.3 Manawatu-Wanganui-Based Ohakea Partners’ Human Capital ...............95
5.4 Tied Migration Effects on Population .............................................................95
5.5 Tied Migration Effects on Human Capital......................................................95
5.6 Latent Human Capital.......................................................................................96
5.7 Related Findings................................................................................................98
5.8 Metaphysical Elaboration...............................................................................100
Chapter 6: Conclusions.............................................................................................102
6.1 Introduction.......................................................................................................102
6.2 Executive Summary........................................................................................102
6.2.1 Purpose of the Research ........................................................................102
6.3 Importance of These Findings.......................................................................105
6.4 Limitations of this Research...........................................................................106
6.5 Further Research.............................................................................................107
References..................................................................................................................109

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Appendix A – Literature Review Summary Regional Economic Development
Theory..........................................................................................................................113
Appendix B – Manawatu-Wanganui Regional Data Summary...........................115
Appendix C – Invitation to Participate in Survey...................................................116
Appendix D – Information Sheet for Research Participants................................117
Appendix E – Human Capital Analysis Data (n Values) ......................................121
Appendix F – Survey Question Rationale ..............................................................124
Appendix G – Survey Questionnaire and Skip Logic Diagram...........................131
Appendix H – Survey Response Data ....................................................................144

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List of Figures
Figure 3.1 – One Sample t Test Formula……………………………………………42
Figure 4.1 – Survey Response by Day………………………………………………48
Figure 4.2 – Ohakea Personnel Employment Demographic……………………...48
Figure 4.3 – Ohakea Partner Posting Type…………………………………………49
Figure 4.4 – Survey Respondent Relationship Status…………………………….49
Figure 4.5 – Ohakea Personnel Employment Demographic……………………...50
Figure 4.6 – Average Survey Respondent Relationship Length…………………51
Figure 4.7 – Survey Respondent Demographic by Age…………………………...51
Figure 4.8 – Respondent Demographic by Age…………………………………….52
Figure 4.9 – Respondent Demographic by Employment Status………………….52
Figure 4.10 – Respondent Demographic by Qualification…………………………53
Figure 4.11 – Respondent Demographic by Organisation Level Attainment……54
Figure 4.12 – Respondent Demographic Represented by Highest Salary Attained
………………………………………………………………………………………….55
Figure 4.13 – Respondent Demographic by Average Career Experience……....56
Figure 4.14 – Respondent Employment Relationship to Ohakea………………...57
Figure 4.15 – Tied Migration Data Based on Employment Location………….....57
Figure 4.16 – Tied Migration Data Based on Career Primacy…………………….57
Figure 4.17 – Respondent Location Choices……………………………………….58
Figure 4.18 – Average Period Living in Manawatu-Wanganui Region for
Respondents Who Met Their Partners While There……………………………….59
Figure 4.19 – Average Period Living in the Manawatu-Wanganui region for
Respondents Who Relocated to or Back to the Region to be Collocated with Their
Partner………………………………………………………………………...............59
Figure 4.20 – Employment Location Status for Respondents Living in the
Manawatu-Wanganui Region Prior to Meeting Their Partner……………………..60
Figure 4.21 – Employment Location Status Respondents Who Moved to the
Manawatu-Wanganui Region to be Collocated with Their Partner……………....60
Figure 4.22 – Employment Status Respondents who met Their Partner While in
the Manawatu-Wanganui Region…………………………………………………...61

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Figure 4.23 – Employment Status Respondents Who Moved to the Manawatu-
Wanganui Region to be Collocated with Their Partner…………………………….62
Figure 4.24 – Career Influence on Respondent's Decision to Move to the
Manawatu-Wanganui Region………………………………………………………..63
Figure 4.25 – Respondents' Views on Part-Time Employment…………………...63
Figure 4.26 – Respondents’ Career Intentions Prior to Relocation to the
Figure 4.27 – Respondents' Attitude to Employment Opportunities within the
Figure 4.28 – Summary Data Respondents' Family vs. Career Considerations..65
Figure 4.29 – Family Influence on Decision to Relocate to the Manawatu-
Wanganui Region……………………………………………………………………..65
Figure 4.30 – Respondent View on Career Currency……………………………...66
Figure 4.31 – Qualification Required of Current Position………………………….67
Figure 4.32 – Respondents' Current Organisational Level………………………..68
Figure 4.33 – Respondents' Current Salary Data…………………………………..69
Figure 4.34 – Average Experience Required of Respondents to Attain their
Current Positions……………………………………………………………………...70
Figure 4.35 – Under-employment Summary Data…………………………………70
Figure 4.36 – Under-employment Frustration Levels……………………………..71
Figure 4.37 – Business Start-Up Involvement……………………………………..72
Figure 4.38 – Levels of Entrepreneurship or Innovation…………………………..72
Figure 4.39 – Summary Data Reasons for not Moving to the Manawatu-Wanganui
Region……………………………………………………………………...................73
Figure 4.40 – Regression Analysis Results Sample Population Total Human
Capital………………………………………………………………………………….80
Figure 4.41 – Regression Analysis Results Sample Population Employed Human
Capital……………………………………………………………………………….....80
Figure 4.42 – Total and Employed Human Capital Comparison by Qualification
……………………………………………………………………………………..…...82
Figure 4.43 – Total and Employed Human Capital Comparison by Salary……...82
Figure 4.44 – Total and Employed Human Capital Comparison by Organisation
Position Level………………………………………………………………………….83

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Figure 4.45 – Total and Employed Human Capital Comparison by Experience
…………………………………………………………………………………….…....83
Figure 4.46 – Employment Specific Question Response Summary…………….86
Figure 4.47 – Human Capital Total vs. Employed………………………………...87
Figure 4.48 – Total and Employed Human Capital by Location Choice………..88
Figure 4.49 – Human Capital Total vs. Employed by Sample Population and
Employed Only………………………………………………………………………..88
Figure 4.50 – Summary Output Reasons for not Relocating………………….....89
Figure 5.1 – Ohakea Partners’ Human Capital (Qualification)……………….......93
Figure 5.2 – Ohakea Partners' Human Capital (Organisational Position Level)..94
Figure 5.3 – Ohakea Partners' Human Capital (Salary)…………………………...94
Figure 5.4 – Human Capital Utilisation Comparisons……………………………...96
Figure 5.5 – Average Total Human Capital vs. Average Employed Human Capital
Manawatu-Wanganui Resident Respondents…………………………………..…97
Figure 5.6 – Latent Human Capital Comparison Non-Tied vs. Tied Migrants…..98
Figure 5.7 – Opportunity Cost by Salary Ohakea Partners………………………101
Figure E-1 – Human Capital Data n Values Sample Population……………….122
Figure E-2 – Human Capital Data n Values by Sub-Group……………………...123
Figure G-1 – Skip Logic Flow Diagram…………………………………………….144

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List of Tables
Table 4.1 – Hypothesis Test Results One Sample t Test……………………......77
Table 4.2 – Sample Standard Error of the Mean Analysis Summary…………….79
Table E-1 – Human Capital n Value Summary Data…………………………....124

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Chapter 1: Introduction and Background
1.1 Introduction
The Ohakea Military Airbase is located in the Central North Island’s Manawatu-
Wanganui region and is positioned adjacent State Highway One equidistant
between the towns of Bulls and Sanson to the north and south respectively.
Ohakea is located within comfortable commuting distance from a number of
towns and cities, including; Foxton, Palmerston North, Whanganui, Marton,
Feilding, Bulls and Sanson. Approximately 1000 people are employed on the
Base. The employment base is made up of uniformed Defence Force personnel;
Defence Force civilian personnel; and employees of non-New Zealand Defence
Force (NZDF) contractors. Civilian contractors are employed at Ohakea on a
permanent basis to provide catering and domestic, security, meteorological,
aircraft engineering, air traffic control, civil construction, and facilities
maintenance services. Given the nature and diversity of the organisations
domiciled at Ohakea the personnel are typically considered transitory in nature.
This is particularly true for those uniformed Air Force personnel.
The Royal New Zealand Air Force (RNZAF) employs personnel at five primary
New Zealand domestic locations, including; Whenuapai in Auckland, Ohakea in
the Manawatu-Wanganui region, Wellington, Woodbourne in Blenheim, and
Christchurch. In order to retain operational employment flexibility, the RNZAF
operates a career management system based on providing a breadth of
experience at each level (rank and position) in order to develop for the next. As
a consequence personnel are moved between positions and/or locations at
approximately two-to-three year intervals. Accordingly, a degree of internal
migration is generated, affecting not only the service member, but also their
family. While each family’s situation is unique, a number of generic factors
related to moving to a new location commonly necessitate consideration. Three
of the main ones are housing for the family, education for children, and spousal
employment.

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Within the Manawatu-Wanganui region housing is comparatively affordable and
quality education is available1. These two factors are, therefore, less of a concern
to this research. Spousal employment opportunities appear to be viewed in a
diametrically opposed way to the other factors, especially for those people
considering a transfer from one of the main cities (Auckland, Wellington or
Christchurch). A perceived lack of spousal or partner employment opportunities
within the Manawatu-Wanganui region seemingly creates a reluctance for
defence personnel to move to Ohakea, undermining the Air Force career
management model, and more importantly potentially influencing the quantity and
quality of the labour pool or human capital within the region.
Despite the perceived barrier, a high number of partners and/or families do
choose to relocate to the Manawatu-Wanganui region as other factors appear to
have greater influence on their decision making processes. Should it be true
there are not equivalent level positions available, there is potential a pool of latent
human capital exists within the Manawatu-Wanganui region as a result of the
underemployment of Ohakea-based personnel trailing partners as a direct
consequence of tied migration.
1.2 Purpose of the Study
The primary goal of the study is to first quantify the degree to which latent human
capital exists in the Manawatu-Wanganui region. The second and related goal is
to assess if there is a greater prevalence of latent human capital resulting from
tied migration and trailing partner or spousal employment generated by the Air
Force posting cycle. While logically and appropriately the study aims to
contribute to the related academic body of knowledge, it is also intended that the
results can be subsequently employed by regional organisations to generate
practical and successful regional economic development outcomes. The study,
therefore, offers the potential to explore a new line of enquiry into the overlap of
1 Carncot, Huntley, Palmerston North Boys and Girls High Schools and Wanganui Collegiate are
examples of high quality schools within the region.

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latent human capital resulting from tied migration, and regional economic
development.
This research is exploratory (Wilson, 2014) in nature and accordingly adopts an
inductive approach. The genesis of the research is the reported reluctance of Air
Force partners to relocate to the Manawatu-Wanganui region from the main
centres because of the perceived negative impact on their respective careers.
Should this be true, and given a number of partners do move as they prioritise
other outcomes over their careers, a degree of underemployed would appear to
exist. This underemployment could be considered latent human capital. The
study accordingly seeks to measure and assess Ohakea-based Air Force partner
human capital utilisation – spousal underemployment.
Within the broad goals of quantification and establishing causality further
objectives exist. These are as follows; firstly, to improve the employability of Air
Force personnel through identifying, assessing, understanding and potentially
resolving barriers to trailing partner or spousal employmentwithin the Manawatu-
Wanganui region. Secondly, to provide more detailed information regarding the
labour pool within the region to regional economic development planners to
enable consideration of alternative and potentially more effective growth
outcomes. Thirdly, to enable subsequent assessment as to whether existing
regional economic development strategic outcomes can be improved by adopting
a targeted approach aimed at delivering specific objectives based upon the actual
human capital identified in the study. In order to achieve the goals and objectives
of the study, five research questions have been developed.
1. What is the total high-level human capital resource held within the
pool of the partners of Ohakea-based personnel?
It is important to answer this question as it is the first in the series of questions
seeking to quantify human capital employment and the answer, as it relates to
the entire sample population, provides the basis for comparison within study. In
relation to this and the second question, it is worth noting that the intended
sample population is not solely located within the Manawatu-Wanganui region.

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Human capital exploration at the highest level is necessitated because of the
complexity of the theory. The concept of human capital is complex as indicated
by the vast range of definitions (Burton-Jones & Spender, 2011). Logically,
measurement is equally complex and can be considered multi-layered. At the
highest level human capital can be considered in terms of ‘skills, knowledge and
capabilities’ (Burton-Jones & Spender, 2011. p. 49). Skills and knowledge can
be assessed through qualification, and capability assessed through
organisational level attained, experience, and salary. This high level only is
considered within this study.
2. What is the high-level human capital resource held within the
Manawatu-Wanganui-based pool of partners of Ohakea-based personnel?
This question seeks to differentiate partners resident in the Manawatu-Wanganui
region from those who elected not to relocate with their partner. Differentiating
within the sample population in this manner will enable the necessary comparison
between the two groups and any distinction with respect to human capital
utilisation to be identified and quantified.
3. What is the effect of tied migration on the Manawatu-Wanganui
region human capital resource?
This question aims to further differentiate the sample population through
measuring and quantifying the human capital of the group of partners classified
as tied migrants, as distinct from the group who were living in the Manawatu-
Wanganui region and met their partners while there.
4. Is there a difference in the human capital resource of resident
Manawatu-Wanganui region partners and tied migrant partners?
Although similar to question three, this question seeks to explore the
underutilisation of human capital based on the likelihood that the resident group
has not been able to reach their full potential because of restrictions caused by
the Manawatu-Wanganui region labour market.

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5. Does latent human capital exist in the Manawatu-Wanganui region?
This question seeks to determine if the human capital resource held within
the pool of Ohakea-based personnel partners is fully utilised.
As well as answering the specific questions detailed above, the study will capture
and present any related and other useful findings. The information derived from
the study may subsequently be employed by regional bodies to inform regional
economic development strategy formulation and the resultant derivation and
delivery of regional economic development strategy.
1.3 Background
The supply of labour in New Zealand is beginning to tighten as indicated by the
reducing rate of unemployment, down 1.3% for the quarter ended December
2013 (Statistics New Zealand, 2014), and more importantly the increasing
employment rate, up 0.3% to 64.7% during the quarter ended December 2013
(Statistics New Zealand, 2014). Employment growth is purported to become
more prevalent during 2014 and into the future. Furthermore, the effect could be
anticipated to increasingly complicate organisational operations for the RNZAF
through personnel shortages. The November 2013 Infometrics Economic
Forecast report graphically describes the situation through the statement, there
is ‘a burgeoning shortage of unskilled, as well as skilled, labour on the horizon’
(2013, p. 18).
The New Zealand Government Business Growth Agenda (BGA) sets the
country’s high-level strategic programme for economic development. The
programme is set against the ambitious strategic goal of doubling New Zealand’s
exports by 2025. The programme’s primary intended outcome can be
summarised as promoting the growth of New Zealand businesses in order to grow
employment and improve living standards across the country (MBIE, 2014). The
agenda has six streams of priority activity2 and two of these relate directly to
human capital development or employment – ‘Skilled and Safe Workplaces’, and
2 Export Markets, Skilled and Safe Workplaces, Innovation, Capital Markets, Natural Resources,
and Infrastructure.

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‘Innovation’ (MBIE, 2014). The Skilled and Safe Workplaces has a bottom-up
focus and seeks to ensure New Zealanders in the workforce are appropriately
skilled through the implementation and delivery of training programmes. This
approach appears to be commonly employed as an economic development
strategy, particularly during periods where the economy performs poorly and
unemployment is comparatively high. Despite the supposed lack of highly skilled
labour in New Zealand, commonly represented through the brain drain
conversation and acknowledged as the basis for the knowledge wave debate, the
productivity and/or full employment of already skilled, trained, educated and
experienced labour attracts little attention.
As part of the overall BGA activity, the current Government acknowledges the
importance of the nation’s regions’ contribution to gross domestic product (GDP)
and resultant economic performance. The regions’ contribution is currently
considered important enough to warrant the introduction of a regular assessment
process and performance report for each of the 16 regions defined by regional
council and unitary authority boundaries. The first Regional Economic Activity
Report was released in 2013. In his foreword, the Honourable Steven Joyce
(2013), Minister for Economic Development, Science and Innovation, Tertiary
Education, Skills and Employment, and Associate Minister of Finance,
summarised the Government’s thinking as follows:
The New Zealand economy is the sum of its individual
geographic parts. The ability of regions around the country to
provide economic opportunities and jobs for people that live in
each region add up to the ability of the country as a whole to
do the same (p. 7).
Further to recognising the importance of the regions’ contribution was the further
recognition that a lack of relevant performance measurement methodology
exists. The gap is to be addressed through the addition of a regional GDP
measure in future reports, an option not currently available as GDP is, in part,
measured at the export point. Accordingly, regions such as the Manawatu-
Wanganui region whose product is shipped internationally from ports (air or sea)

7
outside the region have their GDP data unfairly compromised. Nonetheless, the
proposal to measure regional GDP clearly signals the Government’s expectation
of regional economic performance.
The clear focus on employment is evident within the strategy documents as
employment and economic success appear inextricably linked. In order to satisfy
the outcome–economic wellbeing–resultant growth initiatives seek to reduce
unemployment and to grow employment, often through skills training schemes.
It is unclear if the productivity of the existing labour resource is considered. This
concept appears particularly relevant in the Manawatu-Wanganui region as a
comparatively high number of, in New Zealand terms, medium to large
organisations employ people from outside of the region and nation. Their
partners and families are often required to relocate to the Manawatu-Wanganui.
Organisations such as the NZDF (Ohakea Airbase and Linton Army Camp);
Massey University; Mid-Central Health; Toyota New Zealand; Horizons
Manawatu-Wanganui; and, a range of agricultural research organisations fall into
this category. Furthermore, Palmerston North City is a designated port of entry
for immigration purposes. Therefore, the Manawatu-Wanganui region appears
to have comparatively high rates of tied migration, relative to other regions in New
Zealand.
1.4 Outline of the Study
This chapter commenced by introducing the research topic and discussing the
wider New Zealand Incorporated (NZ Inc.) context within which the study sits.
The importance of the research was described against the nationally mandated
GDP growth goal; the region’s role in contributing to whole-of-country outcomes;
and, at the local level, the opportunity to seek better employment outcomes for
Air Force personnel partners posted to Ohakea and the resultant greater
employment flexibility of military personnel capability. The purpose of the study
was detailed to assess and quantify the degree to which latent human capital
exists within the pool of Ohakea-based personnel partners, and to assess and
quantify the impact of tied migration on the regional labour utilisation. The basis
of the study is the notion the Manawatu-Wanganui regional labour market is

8
influenced by a second order consequence of the Air Force posting cycle – tied
migration. That said, the analysis is not restricted to those partners whom have
moved as a result of their partner’s posting to the region, and the labour pool is
considered in its entirety.
A literature review of three related subject areas, including; tied migration and the
trailing partner; regional economic development theory; and, Manawatu-
Wanganui regional development strategy is presented in Chapter Two. As this
study sits at the intersection of the three fields they are each covered to the
degree necessitated by the questions to be answered. First, the trailing partner
and tied migration literature is comprehensively covered across three domains,
specifically; the military, medical, and expatriate workforce employment contexts.
Second, a chronological review of regional economic development theory
literature is covered as a basis for determining the importance of the labour input
to growth. Finally, the current regional body strategy documents are reviewed
with a focus on assessing the actual approach to labour’s role within existing
economic growth and development plans.
Chapter Three presents a full discussion of the research methodology used for
the research and covers data collection and analysis, ethical and cultural issues,
and a detailed explanation of each question employed within the research
instrument in the form of an electronic survey. A comprehensive summary of the
results from each of the survey questions is provided in Chapter Four. The
chapter is ordered to enable the reader to position the responses to each question
in context with the question design detailed within the pervious chapter, Chapter
Three.
The analysis of results, as related to answering the study questions, is presented
in Chapter Five. The results of the survey outcome data statistical validity
assessment is presented at the start of the chapter, the analysis and subsequent
discussion follows.

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The conclusion to the study is provided in Chapter Six. A summary of the key
findings in the form of an executive summary is included. The limitations of this
research are identified, and opportunities for future research are suggested.

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Chapter 2: Literature Review
2.1 Introduction and Glossary
The nature of the questions upon which this research project is based
necessitates the exploration of literature in three subject areas, including: tied
migration and spousal employment; regional economic development; and, the
Manawatu-Wanganui regional development strategies. Accordingly, there are
three parts to this literature review.
Literature covering the experiences of tied migrants with respect to their
interaction with labour markets in their new locations is reviewed. The literature
in this area is relatively new, becoming prominent in military studies as the divide
between the cost of living and the military salary in the United States of America
(United States) necessitated partner (or wife as it was referred to then)
employment. A number of studies, completed over the period 1981 through 2007
in the United States, Canada and New Zealand are covered. The literature
extends into the medical field as an effort was made to find solutions to relocating
families to remote areas where spousal employment opportunities were limited.
Research was conducted in the United States, Australia and New Zealand over
the period 2002 through to 2006. The increasing requirement to post corporate
managers abroad to undertake expatriate assignments generated another line of
enquiry into spousal employment, with a basis in attempting to address the issue
of expatriate failure. Literature in the medical and expatriate domains is used to
validate and corroborate the primary military studies reviewed in this research.
Subsequently, a chronological review of the literature pertaining to regional
economic development theory is completed in order to understand the foundation
concepts and principles of each theory, and to assess the importance of labour
as an input to and driver of regional growth. The actual Manawatu-Wanganui
regional development strategies are then analysed to ascertain the extent to
which labour is considered against growth initiatives.

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The studies are presented in logical main sub-groups, including; tied migration
(military, medical profession, and expatriate), regional economic development
theory, and Manawatu-Wanganui region regional development strategies.
To assist the reader interpret both the literature and common terms used in this
research a glossary is now provided.
Glossary
Trailing Partner, Trailing Spouse, or Tied Migrant – for the purposes of this
research the terms are considered to be interchangeable, and describe the
person who relocates to a new location in order to be collocated with their partner
when their position moves for employment purposes. While the terms can be
used interchangeably, this research employs the term tied migrant as the primary
descriptor.
Expatriate – ‘employees who are sent from a parent company to live and work
in another country for a period ranging from two to several years’ (Caligiuri, 2002,
cited in Bossard & Peterson, 2005. p. 9).
Posting – a term used to cover the concept where a person’s employer or
organisation moves them to a new geographical location on a semi-permanent
or permanent basis for a period of two years or greater.
Labour – ‘The work time and work effort that people devote to producing goods
and services’ (Bade & Parkin, 2011. p. 37).
Human Capital – ‘The knowledge and skill that people obtain from education,
on-the-job training and work experience’ (Bade & Parkin, 2011. p. 37).
Unemployment Rate – ‘the fraction of [the] labour force participants who are
unemployed’ (Borjas, 2013. p. 23). Calculated through the equation U divided by
LF, where U equals the number of persons unemployed and LF represents the
size of the labour force (Borjas).

12
Employment Rate – the fraction of the population employed and is calculated as
E divided by P, where E equals the number of people employed and P equals the
population (Borjas, 2013).
It is useful to note the distinction between the calculation of unemployment and
employment rates. The former is calculated with the denominator labour force
and the later calculated with the denominator of the population. Two results may,
therefore, not be directly comparable.
Underemployed – the term used within this paper to describe an individual who
is not undertaking a position equivalent to their actual human capital as measured
through their qualification, organisational level, previous experience, and salary.
Discouraged Worker – ‘workers who gave up on their job search because they
could not find any employment’ (Borjas, 2013. p. 504).
2.2 Related Studies of Tied Migration
This section of the report looks at pertinent literature related to the concept of tied
migration. A consolidated and comprehensive overview of the related studies
used to develop the research questions is detailed within this section. The
articles and papers from the related studies have been selected for their
relevance, credibility and their potential contribution as building blocks related to
achieving the aims of this study. A number of the studies have been cited multiple
times by other authors and are accordingly considered as worthy contributions to
the academic discussion related to both the drivers and effect of migration on a
given labour market. Furthermore, the selected papers offer global, defence and
private sector, as well as domestic and international migration perspective.
2.2.1. Military Related Studies
Military geographic installations are typically spread across the width and length
of the home nation, and may also be located on foreign soil in the form of either

13
temporary or permanent installations. Geographic dispersion, coupled with
typical military career development and operational requirements, and the
resultant need to complete various positions at various levels necessitates
frequent relocation for military personnel, and their families if they choose to
remain collocated. A number of factors are considered by a family in order to
decide whether they will remain collocated, or adopt some form of commuting
arrangement. High level factors appear to include housing, schooling, social
networks, relationships with parents, financial implications and spousal or trailing
partner employment. Some form of management of these requirements may be
necessary for a military to employ personnel optimally in order to achieve
mandated organisational goals.
A series of comprehensive studies have been completed in the United States and
Canada focusing on the employment conditions of civilian spouses through the
lenses of gaining employment, referred to as labour market status, in the new
location, and resultant income respectively. Studies tend to adopt an inside out
perspective and view the research based on the organisation’s requirements,
opposed to the outside in mandate of this research where the resultant impact on
the labour market is at the forefront. Nonetheless, the studies do provide a useful
frame of reference for this research.
Grossman (1981) provides a succinct review of ‘the employment situation of
military wives’ (p. 60) in response to a significant trend during the 1970s where
the rate of employment among military wives ‘skyrocketed’ advancing by ‘20
percentage points’ to become ‘equal to that of civilian wives’ (p. 60). Grossman
lists direct, as they relate specifically to the military, and indirect or societal trends
as contributing factors to the rise. Specifically, ‘rapidly-rising prices, low military
pay, and diminished benefits’ coupled with ‘greater societal acceptance of
working wives and mothers’ (p. 60) are detailed as causal factors. The paper
makes a number of related observations, including that, ‘armed forces wives were
more likely to be unemployed than civilian wives (12% versus 5% respectively)’ ;
‘the circumstances of military life may undercut the labour market success [of
military wives]’; military wives’ employment may be adversely affected by the
compulsion ‘to terminate their employment’, a resultant reduction in

14
‘accumulation of seniority or acquisition of skills’ occurs; ‘frequent transfers
require military wives to ‘start over at entry level jobs’; and military wives are
‘stigmatised by their military connection’ (p. 62). Further, the paper
acknowledges that military wives with children are negatively affected to a greater
degree as they are often required to provide sole care when their husbands are
deployed away from the home base for training exercises or operations.
Schwartz, Wood and Griffith (1991) completed a study to assess the ‘impact of
military life on spouse labour force outcomes’ (p. 385) against a wider body of
work called the Army Family Research Program. The programme aimed to guide
policy work in the United States Army with specific aims. This research included
the aim to ‘enhance spouse employment opportunities’ (Schwartz et al., 1991. p.
385). The study employed a modified model based on the Mincer (1962) Labour
Force Participation: A Study of Labour Supply Framework, where recognition of
the human-capital theory premise work experience and potential market wage,
saw years of education, labour force participation and the provision, or not, of
army installation employment added. The findings among other things suggested
that those nearer to larger population centres, with higher education, and greater
location stability or time in location were more likely to be employed full time.
Further, it should be noted the study only analysed the wives of uniformed military
personnel and not defence civilians.
Lakhani and Gade (1992) completed a multi-disciplinary study into career
decisions of couples where both partners were uniformed members of the United
States Army. The study adopted a multi-disciplinary approach to correlate
economic, psychological and sociological variables, in contrast to the pure
economic approach adopted by researchers in previous studies. The basis of the
study was to explore the propensity to remain in the army (against a backdrop of
downsizing) as a method to predict the likely remaining force related to both
voluntary and forced release. It is useful to observe the importance of the
perception of the spouse’s ‘career intentions’ (p 164), and psychological factors
have on influencing career decisions.

15
Truscott and Dupre (1998) present a brief summary of key demographic trends
in the Canadian Defence Force in an effort to capture the divide between a
quarter century old organisational structure and contemporary (at the time in
1998) organisational demographic factors. Of note the study observed higher
rates of spousal employment among military personnel partners when compared
with the national labour force rate, ‘70%’ versus ‘66%’ (p. 3). The study also
observed that annual incomes of military spouses were considerably lower than
those of public service employee spouses – ‘$15,559 and $30,625’ (pp. 3 – 4)
respectively. The salary findings ‘held true for all occupations’ (p. 4), and the
paper suggests a number of potential causal factors, including; differences in
gender, age, experience and geographic location.
Gill and Haurin (1998) present their findings relating to their study of ‘the impact
a wife has on her husband’s choice of career’ (p. 264). An important and related
observation from this research is that the authors corroborate the importance of
the increasing requirement, noting the document has a 1998 lineage, to fully
consider the role a wife’s career has on the relocation decision. ‘Our research
further illuminates why employers find that they must consider the consequences
of career change and relocation for both the employee and spouse’ (p. 277).
Research was conducted by Harrell (2001) to assess whether the service related
role of the military officer’s wife, referred to as ‘white glove’ (p. 56) functions, had
decreased over time. Practically, the tasks broadly grouped under this heading
can be considered attending formal functions; partner or wife activities, such as
coffee groups; visiting the families of deployed personnel and completing chores
to assist; running or belonging to base committees, and so on. Harrell concludes
at best the army had persisted in, at worst increased its ‘dependence on
uncompensated labo[u]r or volunteerism’ (p. 71). Although not necessarily
directly related to this study, it is possible that the requirement to undertake these
duties could influence a partner’s employment decisions.
Booth’s (2001) research recognised the presence of a military installation in a
given location and the resultant personnel consolidation likely has an impact on
or acts as a driver of the proximate labour market. To qualify the actual impact

16
the study sought to measure the ‘effect of military presence on women’s earnings’
(p. 25). Booth’s study is diverse in nature covering the range of installation-local
urban geography scales from a large bases in a very isolated areas–the ‘garrison
town’ (p. 31.)–where the majority, if not all of the population are employed by the
military, through to comparatively, based on the size of their surrounding
infrastructure, small installations located within major urban cities. Booth found
that ‘the average annual earnings of women workers in the paid labo[u]r force are
negatively related to the active-duty military presence in the local labo[u]r market’
(p. 45) and quantified the outcome as a ‘5% penalty for each 10% increase in the
local concentration of active-duty military personnel’ (p. 45).
In 2004, Harrell conducted a further comprehensive study of military spouse
employment and education, and the results are published by the RAND National
Defense Research Institute in a report titled, ‘Working Around the Military
Challenges to Military Spouse Employment and Education’. Analysis of the
preface suggests the issue of uniformed personnel spousal employment is
inextricably linked to military capability as it relates to retention and job
performance of uniformed personnel. The report acknowledges that key policy
organisations, including the Department of Defense, lacked detailed information
relating to the employment and education of military spouses. Prominent findings
from the report are – ‘military spouses are less likely to be employed’; ‘military
spouses are more likely than civilians to be seeking work’; and, ‘military wives
earn less than civilian wives’ (pp. 23 – 62). Causal factors contributing to the key
findings include; reduced labour market experience, greater frequency of moving
location and therefore job, greater likelihood of living remotely (nonmetropolitan),
disrupted education, and sole parent childcare limitations to employment options
where flexibility is required (pp. 23 – 62). Two additional factors were prevalent
in the reported analysis of the spouses’ responses. These included a
requirement for senior military spouses to complete military related volunteer
work limiting an individual’s ability to work certain hours, and the stigmatisation
of military spouses seeking employment (pp. 126 – 128).
A study seeking to ‘directly observe the effect of being a tied migrant on the
economic status of the civilian husbands and wives of military personnel…’ was

17
conducted by Cooke and Speirs (2005. p. 343). They consistently found a
correlation between the degradation of the economic status of married women
and migration. The study sought to clarify whether the effect was based more
generically on military personnel spouses (both male and females – tied migrants)
or females (trailing wives) in general. The results of the study support the
argument that trailing wives and tied migrants are equally and negatively
impacted economically as a result of migration.
Little and Hisnanick (2007) conducted analysis of data from the 2000 United
States census relating to ‘19 million housing units’ (p. 530). They calculated the
impact on the earnings of the husbands of military personnel from relocating. In
part, their findings corroborate those of Cooke and Speirs (2005) that all military
spouses (male or female) are subject to an economic penalty as a result of
migration. Additionally, however, they statistically identified a difference between
the trailing wife and trailing husband. Little and Hisnanick quantify the outcome
for males (husbands) as a ‘32%’ or ‘47%’ (2007. p. 565) lower salary for those
who have changed location domestically or internationally respectively, when
compared to the husbands of the civilian workforce. In comparison a wife who
had lived in a different state or country five years earlier earned ‘60%’ and ‘83%’
less respectively. The study concluded that military husbands both work and earn
less than their civilian counterparts.
The Dunn, Urban and Wang (n.d.) study of the relative income of Canadian
Defence Force personnel female spouses compared to their civilian equivalents
was conducted against an acknowledgement ‘[t]he retention of military personnel
is influenced by the degree to which military spouses experience satisfaction with
their employment and income’ (p. 1) among other things. The paper sought to
address the specific question of ‘what is the employment income of Canadian
Forces spouses compared to spouses of similar groups?’ The study analysed
data from the 2006 long-form census to compare the earnings of spouses in four
demographic groups, including: Canadian forces; police; federal public servants;
and, other civilians. Salary data was further analysed against socio-demographic
control variables from parameters including; age, education, language (English
or French), number of children, time lived in residence following most recent

18
move, children at home, region, and classification as a visible minority or not.
The authors conclude ‘being a C[anadian] F[orces] spouse results in lower
employment income compared to spouses in non-military families’ (p. 17).
During late 2002 and early 2003, Harrell and Werber conducted interview-based
research with 1,102 United States military personnel spouses living in eight
locations within the continental United States (2008). The research covered
spouses from the Navy, Army, Air Force and Marine Corp. The research was
designed to capture data from a cross-spectrum of geographic and economic
areas and further to explore variances across the military employment spectrum
of serving member employment contexts, from submariners through aviators.
The installations also had a range of population densities quantified as very low
through to high, and unemployment ranging from very low to very high. A
grounded theory approach was employed as an ‘exploratory and inductive’ (p.
394) method to test and confirm hypotheses from qualitative and quantitative
data. The research sough to understand two questions; why do the spouses of
military personnel want to work, and what are the barriers to gaining
employment? The results indicate that a spouse’s reason for seeking
employment can range across a continuum from necessity to pay outgoings
through to personal fulfilment. Of the seven categories identified by Harrell and
Werber the most important reasons were; the necessity to pay bills; the desire to
alleviate boredom; personal satisfaction; and, to gain extra spending money.
Seventy five percent of respondents cited financial reasons for needing to work
and two thirds specified this as the single most important reason. The main
barriers to gaining employment were detailed as ‘frequent moves, service
member absence, stigmatisation of military spouses, and employer bias’ (p. 409).
Wadsworth and Southwell (2011) provide a summary of what could be referred
to as the nexus of the military’s expectations regarding the employment of
uniformed personnel and the increasing complexity of the societal demographic
coupled with reducing tolerance from families of true military employability. In the
United States an effort is being made to strike a balance where support services
aid the service family, yet do not create too great an expectation, over-reliance,
and a form of dependency resulting in a degree of helplessness. Thinking relating

19
to how best to support the military family extends to the areas of quality of life,
flexible working arrangements, the sheer quantity of programmes on offer, entry
and exit from the community, supervisor flexibility, mental health, and leadership.
It is notable that this research suggests that ‘civilian workplaces have the potential
to be part of strategies that reduce or exacerbate the challenges’ (p. 180) facing
military families.
In a subtle difference to other works, research completed by Cooney, De Angelis
and Segal to examine the mobility of military personnel has a focus on race, class,
and gender differences (2011). Their results are presented in a 298 page report.
Generally, the study acknowledges and confirms previous findings, for example,
the results indicate that increased levels of geographic mobility are associated
with increased difficulty in finding employment, increased dissatisfaction with
employment opportunities, decreased levels of employment, and lower annual
earnings (p. 2). One important addition within their study is the explicit
acknowledgement of the regular relocation of ‘the working class’ (p. 272). The
inference is that non-military, or commercial organisations, are likely to move
management, or senior personnel between locations and as a result trailing
partner or tied migrant data are skewed accordingly. The study recommends
further research in this area. Another important finding from the work of Cooney
et al. was the direct correlation between the length of time an individual spends
in a given location and their likelihood of finding employment (p. 186). The period
of time in a given location was also observed to correlate with the length of time
with an employer and full-time employment. Spousal employment was found to
be negatively impacted on by international migration as ‘the more time spent
overseas, the more likely the spouse is to be a discouraged worker’ (p. 190).
A location attitude study for the New Zealand Army was completed by Ballantyne
and Horn (2007). The study aimed to investigate, through survey methodology
and qualitative analysis, ‘what personnel take into account when making
decisions about posting locations, and identify differences across rank, age and
relationship/family status’ (p. 2). The study was completed to inform the
development of future personnel policy relating to postings. Nine factors,
developed from analysis of focus group data, were assessed. These included

20
the service person’s own career opportunities, accommodation, career
opportunities for partners, leisure activities, attitude of personnel, proximity to city,
camp facilities, schooling opportunities, and weather. Of concern to this research
is the relevance of the importance of an individual’s partner’s career opportunities
in influencing their posting decisions. Overall, career opportunities for partner
ranked third in importance out of the nine factors identified by the researchers.
The factor was determined to be more important (second) for those in
relationships, with dependents, and in the age brackets 25-29 to 50+. When
partner’s career opportunities were analysed by geographic location (camp),
Linton in the Manawatu ranked fourth out of five options behind Papakura
(Auckland), Trentham (Wellington) and Burnham (Christchurch), with a positivity
appraisal of 3.5 out of 5.0. The three locations rated higher were not assessed
as significantly better and were rated between 3.6 and 4.1 out of 5.0. The New
Zealand Army study is consistent with international research in supporting the
importance of a service member’s partner’s ability to attain employment aligned
with their career as a posting location decision criteria. But, the study does not
capture observations regarding the actual experience of tied migrants following
posting.
Typically defence force personnel tend to be mobile as military installations are
spread widely within a nation’s geographic boundary or international area of
influence. A reasonable amount of research has been undertaken in order to
understand the implications of regular and repeated moves by military personnel
and their family. The defence employment context is observed not to be unique
and parallels have been drawn with civilian employment.
2.2.2 Medical Profession Related Studies
By its very nature, the provision of medical treatment often necessitates physical
contact with the patient, particularly in extreme cases where emergency
treatment is required. Logically, it follows the medical practitioner must be located
with the population to be serviced, regardless of their location. Accordingly, the
medical profession may face similar challenges to the military when it comes to
posting personnel to different and/or remote locations and retaining them. The

21
concept of tied migration and the trailing spouse or partner does, therefore,
receive some attention in the medical career literature, albeit limited.
Humphreys, Jones, Jones and Mara (2002) completed a study to analyse factors
influencing the length of practice of general practitioners (GPs) in rural and
remote areas of Australia. The study was based on the survey of 1344 GPs
across rural, remote and metropolitan areas. The study was designed to assess
professional, and social or community workforce retention factors. Of note to this
study is that the GP’s reaction to ‘the local availability of services, including
education for children and opportunities for spouse employment’ (p. 473) was
measured. 677 responses were received and assessed. The local availability of
services, including spousal employment is a noteworthy retention factor among
Australian GPs in rural practices.
A study in the United States examining barriers to the mobility of health
professionals serving ‘underserved’ populations was conducted by Rosenblatt,
Andrilla, Curitn and Hart (2006). The study found ‘lack of spousal employment’
was a perceived barrier to recruitment of physicians and nurses in rural areas.
Eighty percent of physicians and forty percent of nurses thought the lack of
spousal employment was ‘somewhat’ or ‘very important’ (p. 1047) to mobility.
A similar study was conducted in New Zealand by Kearns, Myers, Adair, Coster
and Coster (2006). They sought to investigate ‘what keeps doctors in place in
New Zealand rural communities and what prompts their departure from practice’
(p. 532). During the study overseas trained doctors (OTDs) from three countries
(United Kingdom, South Africa & Australia) and a spectrum of rural employers
were interviewed. Restricted spousal employment was found to diminish the
attractiveness of a particular location and was recorded as being one of the three
primary themes cited by respondents as probable reasons for leaving a rural
area. The paper acknowledges that an acceptance by OTDs of limited career
opportunities for their spouses is common. Regrettably, no specific
recommendations are made to address the findings in the study.

22
The military and medical fields offer fairly specific insights into the concept of tied
migration. The concept of the expatriate worker is now examined to ascertain if
there are useful insights into tied migration from the broader, non-environment
specific context.
2.2.3 Expatriate Related Studies
A body of literature exists around corporate international assignments and the
expatriate worker based on assessing success factors, analysing failures and
attempting to influence the development of human resource policy, practice and
procedures to maximise organisational outcomes. Enquiry into the field of
research appears to stem from expatriate failure. Academic studies adopt a
broad approach and incorporate the role of the tied migrant in determining the
success, or not, of the leading expatriate. The concept of dual-career couples
appears important to research. Although based on international assignments as
opposed to domestic posting, the literature is worthy of review to ascertain if
relevant themes emerge.
Shaffer, Kraimer, Chen and Bolino (2012) provide a useful frame of reference for
reviewing the literature related to expatriate worker experiences within their
review and future agenda paper. Based on the analysis of 114 empirical articles,
the paper presents a framework as a method of capturing and consolidating
previous thinking and findings. The framework identifies three categories of
‘global work experiences’ (p. 1289) as follows: ‘career choices’; ‘career
challenges’; and, ‘career consequences’. With reference to this study, ‘country
and family consideration’, and ‘work-family conflict’ fall into the ‘career choices’
and ‘career challenges’ (p. 1289) categories respectively. With respect to the first
category, both place (city features, safety, prestige etc…) and ‘personal and
familial relationships and work-family balance concerns’ (p. 1290) were
concluded to be important. Furthermore, the paper acknowledges that spousal
support increases the likelihood a particular assignment will be accepted. The
paper also acknowledges that the management of family is challenging for
expatriate workers, particularly those in dual-career relationships (Shaffer et al.,
2012).

23
In general, policy development efforts aimed at improving the expatriate’s overall
employment conditions seek to offer incentives or remote living allowances as
compensation for limited spousal employment opportunities, opposed to
considering alternative spousal employment options based on contemporary
working arrangements, such as; telecommuting, remote working, Skype, virtual
communication (Shaffer et al., 2012).
This section of the literature review was necessary to consider parallels between
the issues arising from international and domestic postings with particular
reference to tied migration, and to look for important yet perhaps not previously
connected findings between the two broader types of location change.
2.3 Regional Economic DevelopmentTheory
The aim of this study is to quantify the human capital resource contained within
the group of people classified as the partners of personnel employed at the
Ohakea Air Force Base, and further, to compare the utilisation of the human
capital to better inform the discussion regarding regional economic development.
The aim is not to explicitly define regional economic development strategy.
Noting this it is, however, important to establish by way of literature review, the
significance of the relationship of labour or human capital to regional economic
development in general. To quantify a potential resource without a potential
employment context would appear to be irrelevant. Accordingly, a high-level
review of regional economic development literature has been undertaken to
broadly correlate labour with economic development strategy. This component
of the literature review goes deep enough to ascertain if labour is a factor in each
approach, and if so to what degree, and on what basis.
Regional Economic Development Analysis and Planning Strategy (Stimson,
Stough & Roberts, 2006) is a comprehensive chronological overview of regional
economic development theory, written by preeminent scholars within the field.
The book is acknowledged as being written for both students and practitioners
(Stimson et al., 2006). The authors specify the aim of the book as being to
‘provide the reader with an account of quantitative and qualitative approaches to

24
regional economic analysis and of old and new strategic frameworks for
formulating regional economic development planning’ (Preface). The latter
purpose of the book is what makes it a useful high-level overview of regional
economic development for the purposes of this study. Therefore, Stimson et al.
provides the basis of the framework employed in Appendix A used to map
theories against the application of human resource (labour or human capital).
They also provide a detailed overview of contemporary approaches to regional
economic development.
Garlick, Taylor and Plummer (2007) conducted a wide-ranging study in Australia
on behalf of the Australian Government. The study examined ‘patterns of
regional economic growth in Australia over the period 1984 to 2002 to determine
how and why [the] patterns evolved’ (p. 8). While the report was written with a
vocational education and training sector focus, the study’s examination of
regional economic development theory and practice in a country (Australia) with
close cultural alignment with New Zealand provided a useful benchmark against
international theory. The concluding tenet of their report is that a region’s human
resources are the primary influence on a particular ‘community’s viability in a
competitive world’ (p. 18). Garlick et al. make an interesting distinction between
‘creative’ and ‘enterprising’ (p. 19) human capital, where the latter relates to the
creative person who is able to deliver an economic outcome from an idea,
opposed to the mere generation of that idea. The study supports the role of
human resource in regional economic development and promotes training
aligned with contemporary theory outcomes–leadership, entrepreneurship, and
innovation–as a proactive contribution to Australia’s economic growth.
Desai, Nijkamp, and Stough (2011) present a contemporary view thereby subtly
realigning Solow’s (1956) seminal finding ‘that technological change was the
variable that accounted for the discovery that classical factors of production
[labour and capital] barely explained half of the variance in national economic
growth’ (cited in Desai et al., 2011. p. 3) by highlighting the roles of leadership,
social capital and entrepreneurship are important in regional economic
development. This work is focused on the theory of entrepreneurship which
supports the basis for this study’s exploration of human capital.

25
Burton-Jones and Spender (2011) provide a human resource (HR) based view
on the person’s contribution to regional economic development, as a useful
balance to the regional science perspective. They strongly, and perhaps
unsurprisingly given their HR focus, advocate the role of human capital as an
input to regional growth, stating that ‘human capital is increasingly recognised as
the most important source of economic wealth and engine of economic growth
over time’ (p. 49). Burton-Jones and Spender provide a useful summary of the
concept of human capital and specifically, how it is distinct from other forms of
capital, and relate that to the theory of the firm. Therefore, human capital, at least
in contemporary human resource literature is increasingly seen as a necessary
contribution to any regional economic development strategy.
2.4 Manawatu-Wanganui RegionRegional DevelopmentStrategy
The Manawatu-Wanganui Region as defined by the specified regional council
and unitary authority boundaries is influenced by a number of local bodies,
including: The Horowhenua, Taraua, Manawatu, Rangitikei, Whanganui and
Ruapehu District Councils; the Palmerston North City Council; and, the Horizons
Regional Council. Economic development within the region requires coordinated
and aligned activity across the physical geographic boundaries. This notion
appears to be understood by regional representatives, whom verbally
communicate a boundary-less future for the region, akin to the economic theory
of comparative advantage where each area focuses on its unique strengths, and
furthermore adopts a synergistic approach to bordering regions. Agreement is,
however, based on working relationships, opposed to a single region-wide
strategy and associated plan. Appendix B summarises the applicable Manawatu-
Wanganui region demographic data related to regional development.
The Horizons Regional Council is currently developing the Manawatu-Wanganui
region’s unifying environmental plan, known as One Plan (2014) and currently
available as a proposal. While this plan is not a regional strategic plan, the
desired outcomes may have strategic implications. The plan seeks to set the
platform for economic growth through enabling the successful management of
the natural tension between economic activity and environmental sustainability.

26
Specifically, the One Plan aims to ‘strike the ideal balance between using natural
resources for economic and social wellbeing, while keeping the environment in
good health’ (p. 1-1). The One Plan identifies four issues as priorities for
attention, known as the ‘Big Four’ – ‘surface water quality degradation, increased
water demand, unsustainable hill country land use, and threatened indigenous
biological diversity’ (pp. 1-2 – 1-4). The One Plan is considered an important
unifying construct developed to form the foundation for regional growth within a
primary sector focused region.
The Driving Economic Prosperity Benchmark and Diagnostic for Local Authorities
(2008) report produced by the Improvement and Development Agency (I&DeA)
established the process utilised by the Palmerston North City Council (PNCC) to
develop the Economic Well-Being Strategy for Palmerston North (2010) and
subsequently the development of a joint initiative with the Manawatu District
Council (MDC) – the Manawatu Regional Development Strategy (2011). The
diagnostic is structured to distinguish between the processes, mechanisms, and
drivers of economic wellbeing. The practical process requires the establishment
of an understanding of the economy; the development of a strategy based on the
previously developed understanding; and, the delivery and monitoring of the
strategy. Three mechanisms underpin the process – ‘engagement’, ‘partnership’
and ‘leadership’ (I&DeA, 2008. p. 6). Six drivers of economic prosperity are
identified and driver three (detailed in the following paragraph), ‘raising skills and
reducing worklessness’ (I&DeA, 2008. p. 7) is of significance to this study.
In June 2010, the PNCC released the Economic Well-Being Strategy for
Palmerston North. The strategy is based on the process detailed by the I&DeA
(2008). Six drivers are detailed within the strategy, including; ‘enhancing quality
of life’, ‘maximising connectivity’, ‘raising skills and increasing participation in
work’, ‘stimulating investment’ and ‘supporting priority sectors’ (PNCC, 2010. p.
6). Driver three relates directly to this study and driver four relates indirectly, each
are worthy of elaboration. Driver three, raising skills and increasing participation
in work has four identified sub-drivers, and 11 detailed action items aimed to
deliver the overall outcome. Within this driver, the action items are aimed at
addressing macro level (pertaining to the wider affected population) outcomes

27
against unemployment figures, skill levels and NCEA achievement outcomes.
The driver related material does not reference micro level (specific to the
individual) type outcomes. Driver four–‘stimulating investment’ (PNCC, 2010. p.
15)–similarly only refers to macro-type outcomes. Tied migration and the
consequential human capital is not specifically referenced as a potential driver of
economic growth within the Economic Well-Being Strategy.
Manawatu The Best Place to Raise a Family Manawatu Regional Development
Strategy (2011) is the most recent collaborative strategy document to be jointly
released by the PNCC and MDC. The document was released with a ten year
intended life and specifically states ‘this is our plan for the next 10 years for
Palmerston North City and the Manawatu’ (p. 2). The Regional Development
Strategy (RDS) has a hierarchical structure based on a 2021 outcome or future,
eight strategic objectives, a series of shared drivers, and 16 ambitions also
detailed as goals. Specifically, goal 12 relates to employment and the aim of
‘creating jobs and opportunities through enterprise’ (p. 25). The RDS does
provide greater granularity through defining what success looks like. Of note
within goal 12 success is, in part, described as ‘companies having ready access
to talent and vice versa’ (p. 25). In this regard the importance of an appropriately
trained and educated labour force is recognised. Goal 14–brilliant for business’
(p. 26)–has a basis in labour where the aim is that ‘all kinds of jobs are created
and secured here’ (p. 26). Like the Economic Well-Being Strategy, the RDS
seeks to grow business in order to provide work for the labour market. The RDS
does not explicitly appear to attempt to explore a reverse approach where existing
human capital or labour is quantified and business development is aligned
accordingly.
As a cross check, a quick review of the Whanganui District Council 10 Year Plan
2012 to 2022 (2012) supports the notion that the concept applied across the wider
region is similar and bottom-up with a macro-level basis related to district-wide
demographic markers. Typically, the strategy seeks employment growth through
better and more training, and through the provision of support to the business
community to enable growth. The strategy is also considered broad, and similarly
does not appear to account for the impact of tied migration on the labour pool.

28
2.5 Limitations to Extant Research
The study of tied migration has had an inward focus because of the requirements
of particular organisations or industries to consider how better to support the
employee’s family following relocation, in order that the employee be fully
effective and further that other employees are not put off moving to the same
location. While studies have observed the negative outcomes of tied migration,
their focus on developing organisational policy to mitigate undesired
consequences of a move on tied migrants means driving economic development
strategy through considering the local benefits to a given labour market has not
been considered.
Studies completed in an effort to quantify the results of relocating as a trailing
partner, spouse or tied migrant do not appear to have been specifically completed
in New Zealand. However, they have often been focused on populations based
in countries with considerably wider geographic expanses and potential for
military, medical and commercial operations in isolated and remote places.
Accordingly, a direct comparison to New Zealand must be carefully considered.
The degree of remoteness in New Zealand could be considered to be significantly
lower than parts of the United States, Canada, or Australia. For New Zealand Air
Force personnel and their families transferring between locations within the
country, the bases are sited within or within close proximity to the cities or towns
of Auckland, Palmerston North, Wellington, Blenheim and Christchurch. The
situation differs from international comparisons because the labour markets are
of a minimum size; frequent travel between the new and previous location is
possible3; and, the likelihood of having a personal relationship connection and
resultant reference is greater.
3 While it is impractical to commute daily between the Manawatu-Wanganui and Auckland,
Blenheim or Christchurch, these centres can be reached within one hour by air.

29
2.6 Analysis of Literature
A body of literature informs the discussion surrounding the propensity of people
to physically relocate on a semi-permanent basis (two years or more, but not
permanently) or to commute away from their home for employment purposes.
Broadly the literature reviewed in this chapter seeks to explore the impact on the
trailing partner or spouse, as a tied migrant resulting from both domestic and
international moves necessitated by the other partner’s career.
When viewed collectively, the studies and papers reviewed for this research
support a number of important trends. A number of additional environmental
factors appear to be prevalent in the labour market for the tied migrant, resulting
in increased career complexity. The Schwartz, Wood and Griffith (1991) study
concluded that location adjacent to a population centre, education level, stability
in location, labour force participation, and work experience are key determinants
of whether a particular United States Army spouse had employment. In related
studies the transient nature of the military lifestyle and prevalence of the military
partner to be a tied migrant was shown to undermine the very factors necessary
for success in the labour market. Grossman demonstrated that ‘Armed Forces’
wives’ (1981, p. 62) were more likely to be unemployed when compared to their
civilian counterparts and listed several contributory factors, including; a need to
manage household and family requirements because of frequent and often
lengthy absences of the military partner, difficulty completing education, difficulty
accumulating experience, lower access to employer provided development
opportunities because of a perceived lower longevity with the company caused
by posting likelihood, the requirement to start over and often at like or lower levels
in new organisations, and limited ability to establish career supporting networks.
Truscott and Dupre (1998) found that experience levels and geographic location
stability were contributing factors to employment success as measured by salary.
Harrell’s (2001) work highlighted that volunteer work expected of the military
spouse also restricted participation inthe labour market. Generally, tied migration
results in additional barriers to successful engagement in the labour market, and
the following common and related themes exist within the literature.

30
The tied migrant, is less likely to be employed than an individual in the labour
market with geographic locational stability. The likelihood of unemployment is
observed to increase with the frequency of relocation. Studies of military, medical
and expatriate spouses all corroborate this position. This position was found to
be more likely for those outside of areas of greater populous, with lower
education, and low locational stability (Schwartz et al. 1991). Grossman (1981),
Harrell (2004), and Cooney et al. (2011) identified greater periods of
unemployment for military spouses as a result of locational instability. This is true
despite an acknowledgement that military spouses are more likely than civilians
to be seeking employment (Harrell, 2004). In the medical professional case,
there appears to be a level of apathy or a defeated approach to spousal
employment. The Humphreys et al. (2002), Rosenblatt et al. (2006) and Kearns
et al. (2006) papers all refer to a lack of employment opportunity for medical
practitioner partners in remote locations as a barrier to relocation, yet no analysis
of the unemployment rate of subject spouses was presented. The level of
concern appears equal to the military situation, however, the medical
professionals appear to simply accept the outcome.
Acknowledging that being a tied migrant creates barriers to educational
achievement, professional development, and promotion, individuals in this
situation are often employed in lower-level positions than their former role.
Furthermore, there is a requirement for them to perpetually start over for
employment purposes in the new location’s labour market.
A series of international studies completed by Truscott and Dupre (1998), Cooke
and Speirs (2005), Little and Hisnanick (2007), Dunn et al. (u.d.), and Cooney et
al. (2011) found a correlation between the tied migration of trailing military
spouses, both male and female, and comparatively lower incomes, or economic
disadvantage. Truscott and Dupre (1998) quantified this for Canadian Defence
Force spouses as a circa 50% reduction when military spouses were compared
with public service employee spouses. Little and Hisanick (2007) assessed the
effect of both domestic and international tied migration on salary for male and
female trailing spouses. They found a male who had lived in a different state five
years earlier would earn 32% less than a male that had not moved, and a female

31
would earn 60% less than their stable location counterpart (2007. p. 565). In a
related piece of work Booth (2001) presented a correlation between the presence
of active-duty personnel in a given geographic location and the average annual
earnings of female workers. Booth (2001) found there to be a 5% penalty in
earnings for each 10% increase in the local concentration of active-duty
personnel (2001. p. 45). Although the basis of Booth’s work was ‘markets with a
relatively small number of dominant employers’ (2001. p. 30) (reminiscent of the
historical mining industry company town or contemporary military garrison town),
the study was conducted across the spectrum of United States labour market
areas. Accordingly, the results have a broad application.
There is evidence to suggest that tied migrants are stigmatised when associated
with the military. Grossman (1981), Harrell (2004), and Harrell and Weber (2008)
cite stigmatisation as a labour market barrier to gaining employment for military
trailing spouses. The authors of these studies point to the requirement to relocate
often and the resultant shorter tenure in a position, and a greater requirement for
flexibility to enable family issues to be managed while the military partner is
deployed away from home as causal factors to stigmatisation and a resultant
unfavourable employer bias. As a result entry into the labour market in a new
location is complicated for the tied migrant.
The degree of remoteness of a particular geographic location is directly related
to the ability of the tied migrant to gain suitable level, with respect to their
qualification and experience, employment. While the Manawatu-Wanganui
region may not automatically be viewed as remote, anecdotal evidence suggests
some Air Force partners consider it to be so with respect to employment
opportunities when compared to the major cities. Therefore, when considering
the degree of remoteness it is important to draw the distinction between the range
in the literature and the actual Manawatu-Wanganui region.
Arguably remoteness could be considered a defacto measure of the local
employment market, certainly the correlation is implied. The more remote, the
less likely ones’ employment opportunities. On this basis regional unemployment
statistics have greater importance. The unemployment rate for the Manawatu-

32
Wanganui region as measured at December 2013 was 5.7% (Statistics New
Zealand, 2014). The rate is comparative to the national rate of 6.0%. The
unemployment measure coupled with the geographic considerations detailed
above see remoteness determined as less relevant to this study’s sample
population.
Regional economic development is not the primary theoretical foundation block
for this study – the trailing partner or spouse, and tied migration, and the
application of their human capital are. Nonetheless, it is useful to present a high-
level overview of the fundamental principles of regional economic development
in order to understand the significance of the relationship of labour as a capital
input to economic growth.
Appendix A provides a detailed chronological summary of recognised
approaches to regional economic development. Regional economic
development theory has its origins in the broader subject area of economics. At
a fundamental level the study of economics relates to the notion of making
rational choices about how to employ scarce resources to produce goods and
services. In economic theory, resources are grouped under four categories
known as ‘land’, ‘labour’, ‘capital’ and ‘entrepreneurship’ (Bade & Parkin, 2011.
p. 36). These categories are known as the factors of production. Based on the
assumption that economic growth is directly related to production, the importance
of human input to economic development is clear and is represented explicitly by
the term labour, and implicitly in the notion of human capital’s application to
entrepreneurship. Unsurprisingly, the majority of regional economic development
theories assessed for this study had a basis of labour or human capital (see
Appendix A). Furthermore, labour’s importance in the regional economic
development literature, and resultant approaches to growth supports the high-
level basis of this research to develop a better understanding of an actual labour
and human capital resource, and its subsequent application.
Generally, Manawatu and Whanganui regional development strategies do not
specify an approach designed to capture and utilise or exploit existing yet
underutilised human capital within the region. Neither the Economic Well-Being

33
nor RDS explicitly consider tied migration as a potential driver of economic
growth. They do not appear to attempt to explore a reverse approach where
existing human capital or labour is quantified and business development is
aligned accordingly. The strategies are considered broad, and do not appear to
account for the impact of tied migration on the actual labour pool. Regional
economic development strategy designed and delivered by the Manawatu and
Whanganui local government organisations adopts a human capital development
approach, opposed to a human capital employment, utilisation or productivity
approach.
In summary, analysis of the related military-based literature highlights a series of
implications on the career of the tied migrant. When these implications are
considered collectively they suggest the tied migrant is likely to spend greater
periods of time unemployed; be underemployed when in employment; and, be
paid less while employed. However, the military studies were undertaken to
assess dissatisfaction to military personnel with the aim of recommending policy
reforms to reduce attrition. They were not conducted to inform regional economic
development. The findings infer that a pool of latent human capital is likely to
exist adjacent to military installations. This concept also applies, albeit on a
smaller scale, to the medical field.
The concept of a posting between locations within a country or to a foreign
country was found to be equally prevalent in commercial organisations.
Globalisation results in an ever increasing global personnel footprint for
organisations operating in the international marketplace. In the literature, the
individual posted offshore is referred to as an expatriate. Although important, the
expatriate dual-career couple literature focused primarily on improving the
performance of the primary partner while employed in a management role
overseas and is, therefore, of less significance to this research. Essentially, the
expatriate study outcomes are individual or individual firm-centric and not
geographic location or total resource-centric. Nonetheless, as with the military
and medical organisation related studies, the less obvious inference is that within
geographic boundaries where tied migration is prevalent, a pool of either

34
unemployed or underemployed people will exist and accordingly a latent human
capital resource of varying degrees will be present.
Given this and based on analysing the literature across the three interconnected
subjects (tied migration, regional economic development theory, and regional
economic practice within the Manawatu-Wanganui Region) there appears to be
potential for better growth outcomes, through the application of an approach
based on the summary equation of:
G = L + RED(L) + RDS(A)
Where:
 G = growth,
 L = latent human capital,
 RED(L) = labour-based approaches to regional economic development,
and
 RDS(A) = regional development strategy aligned with the human capital
resource.
A connection between tied migration and the resultant human capital resource,
and regional economic development does not appear to have been made.
Nonetheless, the literature does support the study of latent human capital within
a region where tied migration is considered to exist.

35
Chapter 3: Research Design
3.1 Introduction
The purpose of this study is to determine if latent human capital exists within the
Manawatu-Wanganui region, and to assess whether the outcome is affected as
a result of tied migration related to the posting of Air Force personnel to Ohakea
and the associated relocation of their partner. The basis of the study was Air
Force personnel reporting a reluctance of their partners to move to the
Manawatu-Wanganui region due to the resultant negative consequences on their
career opportunities. The study recognises that despite the perceived negative
consequences, a number of personnel do in fact move and, therefore, a degree
of tied migration exists. If the perception regarding negative career
consequences is in fact correct, a degree of unemployment and/or
underemployment would occur and latent human capital would result.
Five questions were developed to enable the purpose of the study to be met.
First, what is the total high-level human capital resource held within the pool of
the partners of Ohakea-based personnel? Second, what is the high-level human
capital resource held within the Manawatu-Wanganui-based pool of partners of
Ohakea-based personnel? Third, what is the effect of tied migration on the
Manawatu-Wanganui region human capital resource? Fourth, is there a
difference in the human capital resource of resident Manawatu-Wanganui region
partners and tied migrant partners? Fifth, does latent human capital exist in the
Manawatu-Wanganui region? This Chapter outlines the research methodology,
data collection and analysis, and the ethical and cultural issues considered and
addressed.
3.2 ResearchMethod
The research was designed based on the 11 step iterative process of quantitative
research detailed by Bryman and Bell (2011. p. 151). An ‘elaborate theory’ (p.
151) was considered. Specifically, latent human capital exists in the Manawatu-

36
Wanganui region as a result of the Air Force posting personnel to and from
Ohakea and the consequential tied migration of their partners. Furthermore, it
was considered regional economic development theory and practice failed to
consider the resultant capital resource as a vehicle to support growth.
Prior to developing a hypothesis, the literature review was completed to
determine if similar or aligned work had been undertaken previously, and to gain
an understanding of the general academic conversation around tied migration
and regional economic development, both the theory and application. The
literature review showed that the subject of tied migration has been studied in
reasonable depth from an organisation or field of practice (military, medical and
expatriate) perspective. Based on the information collated from the literature
review, a number of key themes emerged. Namely, tied migrants were likely to
experience greater levels and longer periods of unemployment; hold
comparatively lower level positions when employed; have lower incomes when
employed; and, experience stigmatisation. These key themes implicitly
supported the hypothesis – latent human capital is present where tied migration
is influential in determining the resident population in a given area.
The regional economic development theory and practice component of the
literature review necessarily supported the validity of the hypothesis for two
reasons. First, it corroborated the significance of human capital as a contributing
element to regional economic growth, where growth is an explicit outcome of
development. Second, the section of the review indicated the assessment,
measurement, quantification and exploitation of total tied migrant human capital
was not explicitly documented within Manawatu-Wanganui region regional
development strategies. A gap worthy of further exploration was identified
through the literature review process.
From the literature review and resultant hypothesis a series of questions were
developed for study through research. The questions (see Section 1.2, reiterated
above in Section 3.1) were designed to enable the capture and comparison of
total human capital and employed human capital among the sample population
of Ohakea-based personnel partners, as well as the subgroups, including; the

Latent Human Capital and the Effects of Tied Migration and Spousal Employment in the Manawatu-Wanganui Region, An Exploratory Study Among Ohakea Partners

Latent Human Capital and the Effects of Tied Migration and Spousal Employment in the Manawatu-Wanganui Region, An Exploratory Study Among Ohakea Partners

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