Post-Study Work Rights (PSWRs) are granted through temporary visas that allow international students to remain and work in the host country after graduation. This research note investigates the economic consequences of extending PSWRs durations, using a major reform in Australia’s Temporary Graduate Visa (TGV) program as a natural experiment. The note assesses the impact of extended work rights on international students’ choices and labour market outcomes.

Thee findings underscore a key policy tension. While extending PSWRs was effective in increasing international student enrolments, encouraging more graduates to remain in Australia, and attracting higher-quality entrant cohorts, it did not lead to clear improvements in international graduates’ labour market outcomes.

Key findings

• For incumbent students, longer PSWRs significantly increased international graduates’ likelihood of remaining in Australia immediately after graduation. These graduates did not experience improved immediate labour market outcomes.
• For entrant cohorts the extended PSWRs enhanced Australia’s attractiveness as a study destination, leading to a substantial rise in international university student enrolments. These additional students typically moved into higher-status occupations.