Question

In: Economics

Pick one of the following theories of international migration discussed by Massey et al: Neo-Classic Micro-economics,...

Pick one of the following theories of international migration discussed by Massey et al: Neo-Classic Micro-economics, New Economics of Labor Migration, World Systems Theory, Dual Labor Market Theory. Discuss the extent to which this theory is specific to the *international* - aspect of migration or to what extent could it also apply to internal migration (say between Halifax NS and Toronto). Which aspects of the theory apply similarly to international and internal migrants and which ones do not? For any differences you point out, are these differences of degree or are they categorical (that is, do some aspects of the theory more closely apply in the case of international as compared to the case of internal migration, or do some aspects not at all apply to internal migration)?

Solutions

Expert Solution

By using Neo Classical migration theory -

  • Each migrant rational human being choosing optimum combination of wage rate, Job security, cost of travel, ( human capital approach, series of investment in education, skills material cost of tavelling, maintenance while looking for work, learning new language, dificulty in experiencing new labor market, Phsycholgical cost cutting old ties, Marginal analysis, weight costs and awards.
  • Differential on wage and employment condition between countries and migrant cost, individual decesion to maximize income. International movement doesnot occur in absence of difference in earning or employment rate between states. Migration occur until expected earning have been equalised internationally.
  • Demand of western europeon countries for foreign migrant workers, if what counted were wage differential, then poorest want to move first, evidence from around the world doesn't support this.
  • New economic of migation - Migration decision are not made by isolated individual but by larger units of related people - typically families and households, people act collectively to maximise expected income and minimise risk and loosen constarints associated with a variety of market failure, apart from those labor market.
  • New economic theorist argue that household sends worker to abroad not to improve income in absolute terms, but also to increase relative to other household, and reduce deprivation compared with some other reference group.market failure that constrain local income opportunities for poor household may increase the attractiveness of migration as an avenue for effecting gain in relative income.
  • Assumption of new economic theory-wage differntials is not a necessary condition for IM to occur. household may have strong incentives to diversity risks through transactional movement even in the absence of wage differentia's. For example, if a poor's family rises, they will experience greater relative deprivation.
  • International migration and local employment/ production are not mutually exclusive possibilities, these are strong incentives for households to engage in both migration and local activities. an increase in return to local economic activities may heighten the attractiveness of migation as a means of overcoming capital and risk constraint on investing in those activities.
  • conclusion- International migration has little to do with wage rate or employment differentials between states; it follows from dynamics of market creation and structure of the global economy. International migration not linked to bifurcation of the labor market within particular national economies, but to the structure of the world market.

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