Question

In: Economics

Briefly explain the four types of mobility. Then What is the formula for calculating the net...

Briefly explain the four types of mobility.

Then What is the formula for calculating the net present value of migration? How do you interpret the results?

Solutions

Expert Solution

The four types of mobility are:

1.Horizontal Mobility

In this social mobility, a person changes his profession , though the social standing remains same.For ex:- Doctor, Engineer, and Professor may enjoy the same status but when an engineer changes his occupation from engineer to teaching engineering, he has horizontally moved from one occupational category to another. Though there are no changes in social stratification. Horizontal mobility is the transition of an individual or social object from one social group to another situated on the same level,According to Sorokin, “Horizontal mobility refers to territorial, religious, political party, family, occupational and other horizontal shifting without any noticeable change in vertical position.”

2.Vertical Mobility

Vertical mobility refers to any change in the occupational, economic or political status of an individual or a group which leads to change of their position.In the words of Sorokin, by vertical social mobility is meant the relations involved in transition of an individual (or a social object) from one social stratum to another.Vertical mobility stands for change of social position either upward or downward, which can be labelled as ascending or descending type of mobility.

3.Upward Mobility:

When a person or a group of persons move from lower position to upper position it is called Upward Mobility.For ex: a person occupying a lower position in society and after winning elections becomes a Minister and occupies a higher position.For the individuals involved, there are many social and psychic costs of upward mobility.

4.Downward Mobility: Downward mobility indicates that one loses his higher position and occupies a lower position. For ex: an individual, who is an Engineer and occupies a respectable position in the society because of his occupational position, if he is caught for accepting bribe or has committed a sin or has done something wrong, he may be sentenced to jail and may occupy a lower position vis-a-vis position he was occupying earlier.Downward Mobility is more stressful for persons who suffer a drastic decline in station position.

Workers will migrate if the net present value of migration (VP) is greater than zero.

VP= present value of net benefits

E2= earnings from new job in year n

E1= earnings from existing job in year n

N=length of time expected on new job

i=interest rate

n= year in which benefits and costs accrue

C= direct and indirct monetary costs resulting from move in the year n

Z=net phychic costs

This determnes that A person decided to migrate after he calculate the oppurtunity cost of moving, that is calculating the difference between earnings from new job in year n and earnings from existing job in year n, with total direct and indirct monetary costs resulting from move in the year n. By Calculating all of these, if the person colncludes it is profitable for him to move, he migrates.

Older individuals are less likely to migrate.The cost of migration rise with family size.Migration is more likely as population level rises.The probability of moving falls with the distance the person must move.Families headed by unemployed person are more likely to move


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