International Business Travel and Australia's Skills Endowment

Abstract

This paper suggests that international air business travels are a form of short-term labour migration that should be studied because they are large, composed of highly skilled labour, and increasingly used by firms as a substitute for long-term secondment. Using published data on international business travel to and from Australia during the period 1976-2000 Australia emerges as a net exporter of labour. Although information on business trips' motivations is still lacking, some normative implications are explored. In particular, it is suggested that in a world where economic prosperity depends on the stock of ideas and not only on the headcount of skilled labour, an immigration policy focused on attracting only 'bodies' and leaving out temporary 'brains' has a limited effect.

Keywords: International business travel, temporary migrants, skill endowment, Australia

JEL Classification: F2, J6